BYD wants to build a factory in Vietnam

Recently, a BYD representative confirmed to Bloomberg about the plan to produce electric cars in Vietnam. Apart from information about the purpose of production to meet domestic consumer demand and export to the Southeast Asian market, specific investment plans are still kept secret.

BYD is currently the largest electric vehicle brand in China. Globally, BYD is second only to Tesla. BYD is also building its first overseas electric vehicle assembly plant in Thailand with an annual capacity of 150,000 vehicles, expected to be operational next year. In addition to Vietnam, BYD is also considering building additional factories in the Philippines and Indonesia.

BYD is planning to take on the giant Tesla this year, starting with 3 million units. To achieve this ambition, BYD has set a target of doubling production compared to last year, to 3.6 million vehicles, including exported cars. At the same time, it is expanding its market size to Asia, Europe and Latin America.

BYD’s output could rise to 4.3 million units this year, according to Zheshang Securities. In April 2023, BYD sold 210,295 vehicles, double the same period last year but only slightly up from the previous month. The company’s shares have also grown 25% year-to-date.

BYD stopped producing gasoline cars in March 2022 to focus on new "green" car lines such as electric and hybrid cars. Although the Chinese electric car company has not disclosed sales details for this year, based on its 2022 report, it could aim to sell 1.75 million electric cars in 2023, close to Tesla's target of 1.8 million.

By expanding its scale, BYD hopes to save on production costs per vehicle. It is unclear whether BYD will lower prices, but the cost savings will allow the company to spend more on promotions.

In 2022, BYD surpassed Volkswagen to become the world's third-largest automaker by market value ($99.7 billion), behind only Tesla ($656.4 billion) and Toyota ($231.2 billion).

In Vietnam, BYD is currently operating an electronic equipment and components assembly plant in Phu Tho province. BYD's presence will pose a significant challenge to the Vietnamese automobile brand - VinFast .

Source: https://www.congluan.vn/byd--hang-xe-dien-lon-nhat-trung-quoc-muon-xay-nha-may-o-viet-nam-post247378.html