BYD ADL Partnership to Supply 36 More Electric Busses for London Routes

(BRK.A), (BRK.B)

The partnership between Chinese battery and vehicle maker BYD and the UK’s leading bus manufacturer Alexander Dennis Limited (ADL) has been selected as preferred bidder by RATP Dev London for the latter’s order of a total of 36 10.8m pure electric buses.

Following a comprehensive technical evaluation of zero emissions buses from a range of electric bus suppliers, RATP Dev London has entered into a letter of intent for the procurement of BYD ADL’s Enviro200 electric vehicle.

The commercial terms for the supply of the vehicles are currently being negotiated for vehicle delivery in spring 2018.

BYD ADL previously supplied The 51 Enviro200EV single-decker buses that were built in Britain and are operated by Go-Ahead London from its Waterloo garage, servicing two Transport for London (TfL) routes – 507 and 521.

The new buses would be based at London United’s Shepherd’s Bush garage and be deployed on two high frequency TfL bus routes: C1 from Victoria to White City and 70 from South Kensington to Chiswick. These two routes, one of which is already operated by RATP Dev London, are being converted by RATP Dev London to full electric operation following the company’s recent success in winning these routes through Transport for London’s tendering process.

The BYD ADL Enviro200 10.8m is a new model designed for more restrictive route conditions than the 51 12m models already in service on the London bus network. Many London streets feature sharp corners and the smaller vehicle – still capable of accommodating 76 passengers – is more appropriate for some routes. Like all ADL BYD models, the new buses will be guaranteed to complete a full day’s duty cycle without the need for recharging.

Once concluded, the new order will bring the number of ADL BYD electric buses in London to over 100, by some way the largest volume of full size electric buses in service in any major European city. The successful and long term BYD ADL partnership agreement has recently been renewed and extended to cover a broader range of exciting products meeting many UK bus model requirements.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million is now worth roughly $1.8 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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