Automaker BYD signed a contract to produce 700 electric buses for Israel's Dan Bus, Caijing magazine reported.

The estimated value of the order is 1.5 billion yuan ($236.65 million) as the market price for a BYD K9 electric bus is about 2.1 million yuan.

The vehicles will be Israel's first electric buses. Eventually, half of the country's bus fleet is expected to be replaced by electric vehicles.

"This is not a one-time sales project, we will do the job step by step," Li Yunfei, BYD's assistant general manager, told Caijing.

Recently, BYD launched a joint venture with Tianjin Public Transport Group. The company plans to produce 10,000 new-energy vehicles for the Northern China market.

In Shenzhen, where BYD is headquartered, the government has decided to add 1,000 new-energy buses and 500 electric taxis to the public transport system.