The site will be used for the first phase of 's planned RMB 5 billion automotive industrial park in Shenzhen.

(Image credit: BYD)

BYD has acquired a new land parcel in Shenzhen, following another one last year in the city where it has its headquarters.

BYD's affiliate Shenzhen BYD Automobile Industry Co has acquired a plot of land with an area of more than 554,500 square meters for RMB 403 million ($60.3 million), according to a report in the Shenzhen Economic Daily today.

The site has a 30-year term of use and will be used for the first phase of the local BYD auto industrial park, according to the report.

It is adjacent to another 400,000-square-meter site acquired by BYD on October 15 last year, which is also being used for the first phase of the industrial park.

The first phase of the project, with a planned total investment of RMB 5 billion, will mainly produce auto parts and accessories and is expected to have an annual output value of about RMB 10 billion and 18,000 employees after it goes into operation, according to the report.

In August last year, BYD signed a strategic cooperation agreement with Shenzhen to invest RMB 5 billion to build a parts facility.

In January this year, BYD invested an additional RMB 20 billion to build the second phase of the auto industrial park, according to Shenzhen Economic Daily.

The investment in the two phases of the project will total RMB 25 billion, and the annual output value is expected to exceed RMB 100 billion when all production is reached, according to the report.

BYD stopped production and sales of traditional internal combustion engine (ICE) vehicles in March to focus on battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs).

It sold 114,943 vehicles in May, marking the third consecutive month of more than 100,000 units. From January to May, BYD sold 507,314 units, up 348.11 percent from 113,213 units in the same period last year.

BYD sells 114,943 vehicles in May, surpassing 100,000 for third consecutive month-CnEVPost

BYD's order backlog is as high as 600,000 units, with a delivery cycle of five to six months, National Business Daily said earlier this month, citing minutes of the company's shareholders' meeting.

BYD expects China's new energy vehicle penetration rate to exceed 35 percent this year and could reach 40 percent, local media Cailian reported in late March, citing minutes of the company's investor meeting.

In a conservative scenario, BYD expects it to sell 1.5 million units in 2022, or 2 million if supply chain conditions improve, according to the minutes.