Chinese Automaker BYD Gets Greenlight to Sell Electric Vehicles in Beijing and Shanghai

In late February, Chinese automaker BYD won regulatory approval to begin selling electric vehicles in Beijing and Shanghai. Once the darling of international green-energy advocates and investors–Warren Buffett’s Berkshire Hathaway Inc. owns a 10 percent stake in BYD–the Shenzhen-based company has in recent years seen modest sales in China and shrinking profits. One hurdle has been an insufficient network of nationwide charging stations.

Until now, BYD has only been allowed to sell its all-electric E6 model in limited markets, including its hometown of Shenzhen, where most sales have been for use as taxis. A fatal fire in 2012–an E6 cab burst into flames after colliding with another vehicle in Shenzhen–created a round of negative publicity, although BYD concluded after an investigation that the electric battery was not the source of the fire. “In the accident, the power batteries of such vehicle did not explode,” the company said in a statement. Yet public skepticism lingered. The company has since faced difficulties and delays in securing government approval to expand its sales channels.