BYD e6

Chinese automaker BYD opened its North American headquarters yesterday in Los Angeles. I’d have to say the event was a success. BYD experienced a rocky start in the US market, including some false starts. So, I was happy to see something go smoothly for the Chinese automaker, which aims to begin selling its electric vehicles to consumers here in the US starting next year. A successful opening event doesn’t ensure success in the marketplace, of course. That will depend on the company’s actual vehicles.

BYD Co., the Warren Buffett-invested Chinese electric vehicle manufacturer, yesterday reported disappointing financial news for it first half results. Profits fell 88.6% in the first half of the year, said BYD, which is listed on the Hong Kong Stock Exchange. Revenue dropped 11%. BYD’s main models carry traditional internal combustion engines. The automaker has yet to start selling electric vehicles to consumers in China. But it is making some headway in selling the EV to fleets.

Last week, I met with Stella Li, senior vice president of BYD Co. I came away thinking BYD is saying the right things as far as setting up distribution, building its brand, and all that other stuff that selling cars involves. But BYD is relying on its battery technology to be a big selling tool. And I would still like to see some independent testing on its battery before I accept the automaker’s capacity claims.