BYD Co., China's largest producer of electric cars, expects sales of its electric vehicles and plug-in hybrids to double each year over the next three years, company Chairman Wang Chuanfu told Chinese media.

 

The Chinese government will reduce subsidies for EVs and plug-in hybrids by 40 percent in the next four years, but the impact of the move on alternative energy vehicle deliveries will be offset by two factors, Wang told Caixin, a Beijing-based business magazine.

 

As automakers build more vehicles and achieve economies of scale, the production cost per unit will fall. Secondly, consumer acceptance is growing, Wang said.

 

BYD sales have reflected the trends. Last year the company sold a record 61,772 EVs and plug-in hybrids, and volume continues to gain momentum, with December deliveries reaching 10,925.

 

For the first time, BYD's EVs generated more sales -- 22 billion yuan ($3.3 billion) -- than its gasoline-powered lineup, which accounted for revenues of 19 billion yuan.

 

BYD is headquartered in the south China city of Shenzhen. It is partly owned by U.S. billionaire Warren Buffett.

 

The company makes gasoline-powered vehicles as well as several EV and plug-in hybrid models. Its product lineup includes the e6 electric compact sedan and the K9 electric bus, while its plug-in hybrid lineup comprises the F3DM and Qin compact sedans and the Tang and Song compact crossovers.