BYD Auto, the car unit of Hong Kong-listed battery producer BYD Co Ltd, will join the legion of local carmakers racing to get into Western Europe and the United States - the two most competitive car markets.

 

Xia Zhibing, general manager of BYD Auto, told China Daily that it plans to sell its 1.6 and 1.8-liter F3 compact sedans in Western Europe as early as next year, with the Netherlands and Portugal its first destinations.

 

The emerging low-cost car manufacturer also plans to ship its 2 and 2.4-liter F6 mid-range sedans to the US in 2009 or 2010, Xia said.

 

"We are in discussions with European and US dealerships to build networks there," he said.

 

But he didn't reveal the price tags of the two models for the two regions.

 

In China, the F3 retails between 71,500 and 105,800 yuan. The F6, to go on sale in October, will sell for around 150,000 yuan.

 

BYD follows local carmakers like Brilliance, Chery and Geely, looking to Western Europe and the US.

 

But May Arthapan, an analyst with industry consultancy Automotive Resources Asia Ltd, said local carmakers won't be able to sell cars based only on low prices in the two regions. Arthapan said the automakers will need brand reputation, quality products with good designs and after-sales service.

 

"Chinese brands still have work to do to improve their vehicles to meet the US and Europe's safety and quality standards. That's the first barrier," Arthapan said.

 

It will take "a lot of time and investment" to sell large volumes there, she said.

 

Cars from China, the world's No 3 vehicle producer, have already faced safety problems in the West.

 

The BS6 mid-sized sedan from Brilliance, which started shipping to Europe in November, only scored one star out of five in a crash test by Germany's ADAC auto club in June.

 

BYD's Xia said: "It's an arduous task to build our brand there."

 

BYD, which mainly exports cars to Latin America and the Middle East, aims to double its overseas sales to 16,000 units this year from 2006.

 

Vehicle exports from China have been in the fast lane in recent years, mainly boosted by indigenous brands.

 

In the first half of this year, the nation's overall vehicle exports surged by 71.3 percent to 241,200 units from a year ago, according to industry data.

 

Japan's Honda Motor is the sole foreign carmaker selling China-made cars in the developed market.

 

BYD, which is headquartered in the southern city of Shenzhen, got into the auto sector in 2003 when it bought a State-owned car plant in Xi'an in the northwest. It now has two research centers in Shanghai and Shenzhen.

 

The company plans to move a total of 150,000 cars this year, up from 60,000 units last year.

 

(China Daily August 10, 2007)