After its first commercial cloud rail operation in Yinchuan, Ningxia, BYD has once again established a cloud production base in the same city. Alongside its existing facilities for producing pure electric passenger cars, the company is now expanding its footprint by setting up additional production bases focused on cloud rail and electric vehicles.
According to the official website of the Yinchuan Municipal People’s Government, on December 21, 2017, Yinchuan and BYD signed an investment cooperation agreement to jointly develop three key production bases: cloud rail, pure electric passenger cars, and more pure electric vehicle manufacturing. This move marked a significant step in strengthening the city's industrial landscape and aligning with national development strategies.
The cloud rail, a high-elevation monorail system, has gained attention as a potential solution to urban traffic congestion. It was the result of five years of research and development, with a total investment of 5 billion yuan. In October 2016, BYD officially launched the cloud rail in Shenzhen, signaling its entry into the rail transportation sector. Just under a year later, it began commercial operations in Yinchuan.
On August 31 this year, Yinchuan opened its first commercial cloud rail line. This project represents China's first fully domestically developed cross-seat monorail system and marks BYD’s first global commercial cloud rail project. The launch was celebrated as a milestone in smart urban mobility.
Wang Chuanfu, Chairman and President of BYD, emphasized the significance of the project, stating that Yinchuan, as a key node in the "Belt and Road" initiative, will serve as a model for future urban rail projects worldwide. He highlighted the potential of the cloud rail to drive innovation and solve traffic challenges in cities around the globe.
Just four months after the opening, Yinchuan and BYD deepened their collaboration, aiming to establish three major industries in the city: cloud rail, electric passenger car production, and further expansion of electric vehicle manufacturing. Acting Mayor Yang Yujing expressed confidence that this partnership would support both parties in participating in the "Belt and Road" industry framework, accelerate Yinchuan’s industrial transformation, and foster the growth of a stronger enterprise.
The cloud rail is a strategic response to urban congestion. According to a report by Lianxun Securities analyst Wang Fenghua, the cost of building a cloud rail system is only one-fifth of a subway, and construction time is just one-third. This makes it ideal for branch lines in large cities and main routes in smaller and medium-sized cities.
BYD’s 2017 semi-annual report indicated that China’s urban rail transit sector is entering a peak period during the "Thirteenth Five-Year Plan." Many provinces and cities have included rail transit in their key development plans. Looking ahead, BYD aims to promote its low-carbon cloud rail solutions and expand partnerships with more cities to address growing traffic issues.
Since the launch of the cloud rail last October, BYD has formed strategic alliances with at least 14 cities, including Shenzhen, Zhongshan, Shantou, Hengyang, Yuxi, Guilin, Guang'an, Handan, Huai'an, Xian, Yinchuan, Jining, Jilin, and Anyang. The company expects the number of cities implementing cloud rail systems to rise to 20 in 2018.
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