CarBuyersNoteBook

Chinese BYD Hybrid

China’s BYD Auto announced at the Detroit Auto Show this week that it plans to offer high-end hybrid cars to the United States market by 2011. Avoiding budget cars entirely, BYD will offer a plug in electric hybrid mid-sized sedan and also a plug in hybrid van, both of which will come with an MSRP of between $30,000 and $40,000. The biggest challenge in getting the vehicles to the U.S. market will be the strict U.S. safety and emissions tests, which the Chinese vehicles have not yet been able to pass. A second challenge is that no U.S. dealership network yet exists for Chinese cars. Some industry analysts question whether the battery technology—which the Chinese claim is cutting edge lithium ion—really even exists yet.

The Chinese are known for making premature announcements of product innovation, just as a kind of a warning shot to the west. Should BYD actually make it to the U.S. market, it is likely they will also have to deal with negative U.S. perceptions of Chinese made goods. So far, the Chinese are not initiating or participating in that discussion.