China’s BYD introduces sedan

Company hopes new Si Rui midsize will edge competition

A model poses with a BYD Co. Si Rui midsize sedan Thursday at the Guangzhou 2012 Auto Show in China.

A model poses with a BYD Co. Si Rui midsize sedan Thursday at the Guangzhou 2012 Auto Show in China.

Saturday, November 24, 2012

— Ailing Chinese automaker BYD Co. is banking on the Si Rui, its new midsize sedan, to help spur a revival in sales.

The car, which made its debut at the Guangzhou auto show this week in southern China, is a follow-up to the best-selling F3. That model was hugely popular with buyers in China, partly because of now-discontinued government subsidies.

But the company’s incoherent business strategy means it was an isolated success. BYD, which also makes rechargeable batteries and mobile-phone handsets, was aggressive with its expansion into electric cars as the Chinese government announced the goal of making the nation a global power in electric car manufacturing. But the bet failed to pay off because of a lack of buyer interest and technological hurdles.

BYD and other Chinese carmakers have also been squeezed by growing numbers of foreign brands entering China’s fast-growing auto market, the world’s biggest. BYD is hoping the Si Rui can help the company stand out against numerous other direct competitors in the competitive smaller midsize slice of the market, which ranges from Geely’s Emgrand line to the Volkswagen Santana and Citroen Elysee.

BYD has not yet released the sticker price for the Si Rui, which won’t go on sale until next year. Analysts guess it will be somewhere around the $11,200 level.

A turbocharged 1.5 liter fourcylinder all-aluminum engine that pumps out 151 horsepower is the sole motor choice. BYD did not provide fuel-consumption data but boasts that combined with the six-speed dualclutch automatic transmission, Si Rui “makes use of every drop of fuel.”

Chinese automakers are still catching up to their foreign rivals when it comes to design, and judging from the Si Rui’s looks, that’s still the case. While it’s sleeker and more modern than the F3, the Si Rui is still highly reminiscent of a Honda Accord or Toyota Corolla.

Visitors to the Guangzhou auto show were unfortunately not allowed to look inside the one Si Rui display model. But potential buyers will be comparing the quality of the dashboard, fabrics and fit and finish with foreign brands. Chinese carmakers have had a tough time raising their quality game, and a close look at other BYD models on display showed they were, as the Chinese say, just “mamahuhu,” or so-so, with plasticky door handles and inconsistent gaps between door and body.

A few high-tech touches will make the Si Rui appeal to gadget freaks. Drivers will be able to see in the dark thanks to a night vision system, which will display an enhanced view of the road ahead to the driver through a heads-up display on the dashboard. The dash also features a 10.2-inch touch screen to control navigation, parking and entertainment systems.

BYD’s third-quarter profit plunged 94 percent to about $738,000 as the number of cars sold fell 18 percent year-onyear to 77,000. Having a hit in China’s car market, which saw sales of 18.5 million vehicles last year, would be a huge help to BYD and investor Warren Buffett, who spent $232 million on a 10 percent stake in 2008.

Business, Pages 35 on 11/24/2012