Beijing auto, Hyundai in talks on China-only electric brand

Beijing Automobile Industry Holding Co. and partner Hyundai Motor Co. are in talks to create a China-only brand that will focus on electric cars, Xu Heyi, chairman of the Chinese carmaker, said today.

The first electric vehicle under the brand may be introduced by year’s end, Xu said in an interview in the Chinese port city of Dalian, where he’s attending the World Economic Forum meetings.

Daimler AG and Nissan Motor Co. have already announced plans to add alternative-energy vehicles in China as the world’s largest polluter seeks to reduce emissions. The government aims to have 1 million electric-powered vehicles on the road by 2015, according to the Ministry of Science.

Nissan will work with Wuhan-based Dongfeng Motor Group Co. to roll out an EV under the new Venucia marque, the company said July 26. Daimler and Warren Buffett-backed BYD Co. aim to introduce an electric car in China in 2013, Ulrich Walker, the Stuttgart, Germany-based company’s chairman and chief executive officer for Northeast Asia, said in April.

Separately, Xu said that Beijing Auto’s passenger-car venture with Daimler is seeking 12.8 billion yuan ($2 billion) in loans from a group of banks for new production lines and an engine factory.

The Chinese automaker also plans to list unit BAIC Motor Co. next year, he said.

--Liza Lin, Zheng Lifei. Editors: Michael Tighe, Neil Denslow

To contact Bloomberg News staff for this story: Liza Lin in Shanghai at llin15bloomberg.net; Zheng Lifei in Beijing at lzheng32bloomberg.net

To contact the editor responsible for this story: Kae Inoue at kinouebloomberg.net