BYD plans to launch into US market next year

BYD, the mainland carmaker backed by Warren Buffett's Berkshire Hathaway, says Chinese cars are poised to begin hitting US showrooms by next year.

Shenzhen-based BYD planned to introduce four models for its US debut at the end of next year, said Stella Li, the senior vice-president in charge of the company's US business.

BYD was not ready when it sought to enter the market in 2010, but was more prepared this time, Li said.

BYD's ambitions, echoed by companies from Geely Automobile to Great Wall Motor, show how the Chinese are seeking to shake up the US car market as the Japanese and South Koreans did decades earlier. Geely and Chery Automobile have made such failed predictions as far back as 2005.

"Entering the US market carries more symbolic meaning to brand building than actually boosting its bottom line," said Han Weiqi, an analyst with CSC International. "They really need to make sure cars they deliver there have sound quality."

BYD is returning its sights to the US after chairman Wang Chuanfu completed a three-year reorganisation last year, during which he cut the number of dealerships and narrowed losses at its solar business, thanks to state incentives.

Investors have been receptive to BYD's turnaround. The company, which focuses on electric cars, saw its shares surge 63 per cent to HK$38 in Hong Kong last year.