Chinese carmaker, BYD, has announced Los Angeles will be the location of its US headquarters and assembly lines.?Our reporters?explains why the auto giant views the city as the ideal location to drive sales of its clean-energy vehicles in the American auto market.

BYD said California's supportive policies for clean energy development coupled with Los Angeles' abundant sunshine made the city the perfect place for its American headquarters. The carmaker's chairman, Wang Chuanfu, says BYD - which stands for Build Your Dreams - has visions of a greener future.

Wang Chuanfu, BYD Chairman, said, "BYD has three dreams. Firstly, to make electric vehicles. Secondly, to develop low-cost solar power technology. Thirdly, we want to increase battery energy storage. We will roll out our electric vehicle, BYD E-6, in Los Angeles by the end of this year. We will also gradually expand our operation to allow Los Angeles to benefit from green technology."

Los Angeles' mayor and California's governor have both welcomed BYD's move, which will not only boost the state's clean energy industry, but also create hundreds of jobs. California will also offer preferential tariffs for BYD's electric vehicles.

BYD, which is China's fourth-largest car maker, also manufactures batteries and solar panels. Its electric-hybrid vehicles are partly financed by American billionaire, Warren Buffett, who invested 230 million US dollars to buy 9.9 percent of BYD shares in 2008.