US billionaire Warren Buffett plans to increase his stake in Chinese automobile and battery maker BYD Co., China Business News reported Wednesday, citing people close to the company.

Buffett and BYD talked about the shareholding-increase plan during their meeting last evening, the source said.

Before Buffett's visit to BYD, rumors said the billionaire was planning to sell part or all his holdings in BYD. However, Buffett reaffirmed his confidence and support to the automaker in the past two days. "BYD is the right choice for me," he told nearly a thousand BYD car dealers at an annual dealers meeting in Shenzhen on Tuesday.

In 2008, Buffett bought 10 percent of BYD shares for $230 million through Berkshire Hathaway Inc, a company he controls. Now this investment is worth about $1.6 billion.

Shares of BYD Tuesday closed at $57.05, down 1.04 percent.

China's business press carried the story above on Wednesday. China.org.cn has not checked the stories and does not vouch for their accuracy.