Berkshire Hathaway-backed BYD is furthering its push into the battery-powered commercial truck market with the creation of a new BEV truck company.
BYD and Hino Motors, Ltd. have signed a joint venture to establish a new company for commercial battery electric vehicles development. The new venture is scheduled to be established in China in 2021, with BYD and Hino each making a 50% capital investment.
Hino represents the Toyota Group in the global market for medium-duty trucks, heavy-duty trucks, and buses. In 2001, Toyota Motor Corporation acquired a majority ownership of Hino Motors, Ltd.
The goal of the new company is to combine the strengths of both companies to develop BEVs and electric units primarily in the Asian market.
The venture plans to initially launch vehicles under the Hino brand in the first half of the 2020s.
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 has grown in value more than twenty-fold.
© 2020 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, 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.