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

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.