BYD has started production of new two-litre turbocharged direct injection engines and 6DT35 dual clutch transmissions in Shenzhen, Guangdong.

The engines can deliver up to 205hp and 320Nm of torque, and can be paired with the new six-speed dual clutch transmission, reports the Beijing Youth Daily. Both products are completely self-developed, and BYD owns full intellectual rights to the technology.

The company will first feature the engine and transmission in the BYD S7 SUV, which is due to be launched in May 2014 at a price of between CNY170,000 (US$27,394) and CNY200,000.