Chinese firm wins race for world's first plug-in hybrid

Chinese battery giant BYD is to unveil the world's first production plug-in hybrid at the North American International Auto Show in Detroit later today, amid promises that the vehicle will be available in Europe and the US within three years.

The F3DM is a small four-door saloon that features an electric motor powered by a lithium iron-phosphate battery and a one litre petrol engine.

BYD – which shot to prominence last October when US billionaire Warren Buffet forked out $230m for a 10 per cent stake in the company – said the car will travel up to 60 miles using the battery alone before the petrol engine kicks in.

As with a conventional hybrid, braking helps to recharge the battery, but it can also be plugged in overnight meaning that most journeys can be completed without the need to use the petrol engine at all.

According to reports in yesterday's Sunday Times, BYD is to begin selling the new F3DM model in China's urban areas before turning its attention to Europe and the US. The company's founder and chairman, Wang Chuanfu, has set the firm the ambitious target of becoming the world's largest car manufacturer by 2025.

The company is also expected to significantly undercut rival hybrid manufacturers, initially pricing the F3DM at 150,000 yuan (£14,400), almost 50 per cent less than the price of Toyota's Prius in the Chinese market.

Both Toyota and Honda are expected to unveil new versions of their conventional hybrids at the Detroit Show this week, but the F3DM makes BYD the first manufacturer to produce a plug-in hybrid. Both Toyota's plug-in version of the Prius and General Motors high-profile Chevy Volt are not expected until next year.