Chinese electric vehicle manufacturer BYD is entering the railway transportation market, with the announcement of plans to build a monorail service in Shenzhen.

The "Skyrail" will take around two years to build, one-third of the time taken to build the average metro system, and will cost around 20 percent of the latter, according to the company.

With an investment of 5 billion yuan ($757 million) in five years, BYD aims to solve the traffic jam problem in crowded cities caused by population increase.