China's BYD Auto Predicts New EV on the Road This Year

In the heady atmosphere of one of the top auto shows in the world, Detroit's North American International Auto Show, it's easy to make claims about new vehicles, sales plans and marketing, however, the reality will likely be different, if past Detroit shows are any guide where vehicles were shown that displayed promise and still haven't surfaced.

This year's optimism award goes to BYD Autos, a Shenzen, China-based manufacturer of electric vehicles. According to an interview with AOL Autos, Henry Li, general manager, boldly stated that the automaker will be marketing its e6, battery-powered five-door hatchback this year.

This talk sounds like the type of talk you would hear from a small, energetic automaker that is eager to force its way into the market but there's much more to it than mere optimism. Billionaire Warren Buffet, owner of Berkshire Hathaway, displayed the e6 at the company's stockholder's meeting last year and Buffet, himself, has purchased a $232 million stake in the Chinese automaker.

So, as AOL says, there might be something to Henry Li's claims, however, BYD, actually the subsidiary of a battery manufacturer that opened its doors in 1995, followed by its automotive division in 2005, still has a couple of rather small chasms to leap across. They are:

1.The company has no dealer network, although Li promised a 500-dealer network, concentrated in the largest cities
2.The company has yet to run the gamut of National Highway Traffic Safety Administration (NHTSA) tests
Li believes that BYD will quickly overcome these difficulties and will become a major player in the EV market (EV stands for Electric Vehicle). It is in the process of interviewing individual dealers on the West Coast right now and it believes it will soon have NHTSA approval it needs so that the vehicles can be sold here.. NHTSA can grant the company approval to sell based on recorded testing done by the imported maker itself or it can demand vehicles for testing and then conduct the testing in its own facility. No decision has been made yet, although the federal auto watchdog agency has approved the entry of five vehicles here, but only for the show. It's not immediately known if these vehicles will be be used for safety testing.

What is known is that dealers who take on the e6 are facing a heavy investment for a one-car line at a very slow time in the car business. Also, there's no brand-name recognition yet, so BYD will be coming out of the blocks with cement around its corporate feet, unless it know something that the rest of the automotive world does not.

Li's assessment is simple. He told AOL Autos that the "market is looking for EV s (electric vehicles) and hybrids." Since that is the trend, the BYD official noted that "we have the right product."

The e6, about the size of Ford's Focus, is a five-door hatchback, that is said to have a range of 205 miles, based on nickel-iron batteries that are below the vehicles floor. From what we saw at the auto show, the e6 has a very contemporary design and is said to do 0 to 60 in 14 seconds and BYD claims it has a top speed of 87 mph. Li called the e6 a "special car that needs special care."

Some estimates have placed the per unit build cost of the e6 at $40,000 per copy. Li indicated the company could take an early loss per vehicle as it establishes itself in the market here. Further, there's also the leasing option available.

Can BYD have its vehicle on the streets of San Francisco or Los Angeles this year? Jeff Shyster, executive director of automotive intelligence for J.D. Power, renowned automotive research firm, doubts this will happen this year because it has no dealer network and no passed safety tests.

But, BYD may be a surprise sleeper as it started life as the subsidiary of a battery manufacturer in 2005 and int its first year if business it sold about 160,000 that will likely grow to 450,000 vehicles this year. They predict 800,000 units next year and with the Chinese automotive economy as hot as it is - China surpassed the United States as the largest car market, either. The e6 is already for sale in China, the Middle East, Africa and South America.

Only time will tell if this prediction is correct, but it also shows some of the more interesting news to come out of the auto show as reporters arrive home and either do on-air pieces about the show or as bloggers get their PCs ready for some punditry. Well, here's our guess: since Warren Buffet isn't likely to spend $232 million on anything less than a sure bet, you can likely expect the e6 to be on sale in this market this year.