Chinese automaker BYD has increased three subsidiaries' capital in the form of cash to expand its automotive business.

The capital increases include $850 million or its RMB equivalent for BYD Auto Industry and RMB3 billion ($460 million) for both BYD Auto and BYD Supply Chain Management, according to a filing to the Shenzhen stock exchange.

These capital increases will be added to the registered capital of all three companies.

BYD hopes to increase the capital of its subsidiaries to enhance its product development and operational capabilities, and to improve the company's core competitiveness.

The company said this action is necessary for normal production and operations and helps the subsidiary to better develop its business.

BYD's net profit for 2020 is RMB 3.36 million ($520,000).

This action is consistent with BYD's previous statements. BYD Chairman Wang Chuanfu said in a speech on January 16 that the time is ripe for electric vehicles to fully replace gasoline vehicles.

He claimed that the reason for saying so is that the battery, motor and electric control technologies of electric vehicles have become more and more mature in recent years, and their advantages in acceleration, noise reduction, energy consumption, the convenience of maintenance, intelligence, and cost have comprehensively surpassed those of gasoline vehicles.

"We have reason to believe that 2021 will usher the new era of the rapid development of electric vehicles in China," Wang said.

According to Wang, China promulgated Planning for the Development of the Energy-Saving and New Energy Automobile Industry last November, which has strengthened the industry's confidence and expectations for development.

This plan proposes a 20 percent share of electric vehicles in sales of new vehicles by 2025 and the full electrification of vehicles in the public sector by 2035.

(Source: BYD)