In a press release issued this week by BYD, the company outlined a far less dramatic plan for its electric vehicle going forward. Rather than producing the E6 on a grand scale, the company will instead produce 100 models to be used as taxis in Shenzhen, the company's home city. Further development is expected to be dependant on the success of this program.
In abandoning its plans for a mass produced electric car in China, the company will likely have to lean on other methods of turning profit. Expect BYD to focus more heavily on its F3 model. While not as revolutionary as a fully electric automobile, this sedan has risen to become one of the most popular cars in China.
Electric cars will be a growing part of the automobile market, and with models like the E6, BYD is likely to be a frontrunner when the trend takes off. Until then, the company can ensure that it will continue to provide investors with strong, stable returns by focusing on more tried and true methods of making money in the present.
Now that BYD has abandoned its bold plan to mass produce an electric car in 2010, does this company still have the same appeal? Feel free to leave a comment below.-- Written by Don Dion in Williamstown, Mass.