BYD and Generate Capital to launch first-ever US partnership for an electric bus leasing programme
The world’s largest manufacturer of electric vehicles, BYD Motors has announced a joint venture to launch the first electric bus leasing programme of its kind in the US in partnership with Generate Capital, a leading financier, owner, and operator of distributed infrastructure.
US$200 million will be allocated to this pioneering lease programme, which will help public and private sector clients accelerate the adoption of battery-powered electric buses by reducing upfront costs. In doing so, the programme will also help provide cleaner, quieter, safer, and more fiscally responsible transportation choices.
The US currently has around 300 electric buses in the country, two-thirds of which are manufactured by BYD. BYD and Generate Capital believe there is substantial room for growth in the US electric bus market as the current fleet size is a fraction of the roughly 345,000 electric buses.
The Generate-BYD partnership aims to provide private sector clients and smaller municipalities with the same access to clean transportation options that larger municipalities use to save substantial money, because electric buses are cheaper to run over the life of the asset.
BYD client Antelope Valley Transit Authority (AVTA) in Los Angeles County estimates a cost savings of more than US$46 million over the lifetime of a new fleet by electrifying its buses; equivalent to approximately US$46,000 per bus per year in savings compared to an all diesel fleet.
In addition, AVTA estimates that noise pollution will be reduced by 50% and that the all-electric fleet will provide elimination of CO2, NOx, PM10 and PM2.5, improving air quality. AVTA will become the nation’s first 100% electric bus fleet by the end of 2018.
This innovative lease programme has secured several clients, including prominent universities, top corporations and smaller municipalities. According to the US Department of Transportation, every zero-emission bus eliminates approximately 1,690 tonnes of CO2 over a 12-year period.
This is equivalent to taking 27 cars off the road. These buses also eliminate approximately 10 tonnes of nitrogen oxide, and 350 pounds of diesel particulate matter.