The newspaper reports that the China Securities Regulatory Commission will review the automaker's proposal for a public offering on the Shenzhen stock exchange.

According to the Shanghai Daily, BYD wants to use the funds from its proposed stock offering to expand R&D and boost production in Shenzhen, where it is headquartered.

The company already is listed on the Hong Kong exchange.

BYD, which is 10 percent owned by billionaire investor Warren Buffett's Berkshire Hathaway Inc., announced on April 20 that it would issue bonds worth 1 billion yuan.

The new debt will help expand BYD's battery and handset component businesses and pay off bank loans.

However, BYD has been struggling with stagnant sales ever since last summer. Despite big price cuts early this year, sales in March plunged 41 percent year-on-year to 40,027 units.