Chinese Firm Plans Electric Truck Factory

BLOOMBERG-- BYD Co., the Chinese electric-vehicle maker backed by Warren Buffett, plans to open its first assembly plant in Canada to handle an anticipated surge in demand for electric trucks from municipalities and businesses.

BYD will open the plant next year in Ontario and hire about 40 people to start, a BYD spokesman said. The Shenzhen-based company has decided to “significantly” accelerate its investment in Canada as growing demand for electric vehicles and provincial tax incentives create a more welcoming environment than the U.S. in the short-term, a BYD spokesman said.

BYD will start its operations in Ontario by shipping technology and components from China and making short-range vehicles such as garbage and delivery trucks.

Source: Automotive News Read The Story

PSR Analysis: Electric trucks are a good option for the refuse and delivery segments since they are close to their home terminals. Currently, there is little infrastructure for charging the batteries. However, the electric trucks will compete directly with natural gas engines, which are also another good fit for alternative fuel. At least initially, demand will likely be somewhat dependent on the amount of subsidies that are available. PSR

--By Chris Fisher, Senior commercial vehicle analyst