(BRK.A), (BRK.B)
BYD Korea Co. Ltd., along with South Korean firm Ezwelfare Co. Ltd, has sold 21 units of its 7m pure electric coaches to Jeju Island, a popular South Korean vacation spot.
The deal is the largest order ever placed by South Korea for electric buses and the largest ever won by an electric coach manufacturer in the developed countries in East Asia.
The local government of Jeju Island aims to make all vehicles electric by 2030 as a way of protecting the environment, which is its main drawing card for the tourism sector on which it depends.
The province also plans to complete an extensive network of charging stations as part of the initiative.
The local government’s landmark deal with BYD is a step towards realizing its vision.
“Jeju Island’s ambition to become carbon neutral by 2030 is in line with BYD’s aims of full transport electrification,” said Liu Xueliang, General Manager of BYD’s Asia Pacific Auto Sales Division. “We are honored to introduce BYD electric vehicles to South Korean market along with the BYD SkyRail, our straddle monorail. These will enable residents of both Jeju Island and the rest of South Korea to reap the benefits of new energy products.”
The deal comes just weeks before BYD’s 12m pure electric bus make their commercial debut in South Korea after being used as an official vehicle at the 3rd International Electric Vehicle Expo in March 2016. The delivery of the 12m electric bus will add to the list of BYD electric vehicles already in the market including forklifts.
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 $1.77 billion.
For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.
© 2016 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.