Times are tough for automakers, but fast-rising Chinese company BYD, which stands for Build Your Dream, dreams big in the electric car market. BYD, partially-owned by billionaire investor Warren Buffett, beat Japanese and U.S. automakers to release the first plug-in hybrid car in China. If it fulfills its promises, the cheaper car may have a good chance against Toyota Motor's Prius in the urban Chinese market.

BYD's F3DM model operates in either full electric or gas-electric modes, and contains an electric battery that can be charged at a regular plug or at a recharging station. It can travel up to 100 kilometers (62 miles) solely on battery power, and contains a back-up gas engine, BYD said on Monday. Drivers alternate between the two power modes by flipping a switch: the electric mode is optimal for city driving, as gas engines are more wasteful under constant acceleration and deceleration, and the gas-electric mode is more appropriate for travel on highways and outside of cities.