Isbrand Ho, managing director of BYD Auto Europe.

The latest New Routemaster costs 325,000 pounds ($502,970; 457,100 euros) each, compared with 200,000 pounds for an existing hybrid vehicle, according to the London Mayor's Office.

"For a bus, the largest part of the cost is actually the fuel, so over the long term electric vehicles can give a big cost saving effect," Ho says.

The main challenge for electric buses is the lack of charging points, as is the case with other electric vehicles, because the technology is still relatively new, he says.

His team is working with Metroline, the London bus operator, to install charging infrastructure at bus depots, and is providing guidance on how to install the charging points, where to install them, what type of power requirements are needed. The company has invited Metroline engineers to China to see similar facilities.

Two years ago, BYD supplied two single-decker buses to the London bus operator Go Ahead, which are still in use. BYD also helped Go Ahead with installing the charging points.

The charging points are installed at bus depots, where the buses are parked at night, so the way the buses operate during the day is not affected. Most bus routes can be serviced for a full day on a single charge, needing only four hours to recharge during the night, using cheaper off-peak electricity, he says.

Founded in Shenzhen in 2003, BYD is already a leader in electric vehicles in both its domestic and international markets.

Ho says in Europe the company hopes to focus on the commercial vehicle market first, producing buses and taxis, because these vehicles can reach a wider user base and help BYD to build up a brand in Europe.

BYD has supplied vehicles to many countries, including Sweden, the Netherlands, Denmark, Belgium, the UK and Spain. Its European headquarters is in the Netherlands.

Looking ahead, Ho is optimistic about growth in the use of electric vehicles in Europe, because cities are becoming increasingly densely populated with many people preferring to live in the city, creating a big demand on public transport.

Meanwhile, the environmental credentials of the electric vehicles is also a big contributor to this trend, as European cities move increasingly to reduce pollution, he says.

According to China's Ministry of Industry and Information Technology, some 19,000 plug-in electric cars, buses and trucks were produced in China in May, and the International Energy Agency says China ranks third on the list of countries using pure electric cars, with 80,000 sold since 2008.

cecily.liu@chinadaily.com.cn