"We are looking for a location in Germany where we will set up something this year to oversee our European operations," said a company spokeswoman, who declined to offer further details. 

BYD has yet to export its vehicles to Europe. But the company has sent three F3DM plug-in hybrid sedans to participate in a demonstration program in Madrid this year, according to the spokeswoman. 

The F3DM is powered by an electric motor and a 1.0-liter gasoline engine. It has a range of about 400 kilometers, with a maximum speed of 160 kilometers per hour. It can travel 100 kilometers on the batteries alone.

In March, BYD launched retail sales of its F3DM. 

In May, it delivered its first batch of e6 electric taxis to a municipal taxi fleet in Shenzhen. That same month, BYD announced plans to establish its North American headquarters in Los Angeles.

Earlier this month, BYD and Daimler AG finalized their plans to form a 600 million yuan ($87 million) joint venture to produce electric vehicles in China. Daimler will design the vehicle bodies and safety componentry, while BYD develops the batteries and electric drivetrains.