(Yicai Global) April 4 -- BYD’s shares jumped after the Chinese firm announced to stop producing fossil fuel-powered vehicles yesterday, becoming the world’s first carmaker to do so.

The stock [HKG: 1211] was up 7.8 percent at HKD242.80 (USD31) as of 3.00 p.m. Hong Kong time today. Its Shenzhen-listed shares are not trading today and tomorrow amid China’s Qingming Festival holidays.

BYD stopped producing petrol cars last month and will focus on battery and plug-in hybrid electric vehicles for strategic development needs, the Shenzhen-based firm said in a filing to the Hong Kong Stock Exchange yesterday. The automaker will continue making fuel vehicles parts to provide after-sale services to existing customers and ensure the supply of parts in the full product life cycle, it added.

Stopping the production of fuel autos will help BYD focus on energy saving and battery vehicles, which is more conducive to the company’s expansion, an industry insider said.

BYD sold 291,400 vehicles in the first quarter of this year, 98 percent of which were new energy vehicles. The 104,338 units it sold last month were all NEVs. The company’s sales are growing rapidly and it is expected to sell over 1.5 million vehicles this year, according to Shanghai Securities.

As of February, BYD’s battery passenger vehicles and plug-in hybrid electric passenger vehicles took Chinese market shares of 18 percent and 59 percent, respectively, maintaining a stable leading position in the industry, according to a report from Guosen Securities.

Founded in 1995, BYD entered the carmaking sector by acquiring Qinchuan Automobile in 2003. It started producing its first battery vehicle F3e in 2006. By the end of this year, the firm’s actual production capacity may reach 1.9 million units.

Editor: Futura Costaglione