BYD - the electric car tycoon that grew up from a battery manufacturer

In the US, Tesla may be at the forefront of the electric vehicle revolution, but abroad, the automaker faces some stiff competition.

In China - the world's largest electric vehicle market, Tesla is losing ground to domestic automakers, who are increasingly making better cars at more competitive prices, led by the BYD brand backed by billionaire Warren Buffett.

China's leading electric vehicle company, which started out as a battery maker, BYD has been looking to beat Tesla. (Photo: Bloomberg)

By the fourth quarter of 2023, BYD had overtaken Tesla as the world’s top electric vehicle maker, selling more electric vehicles than its American rival Tesla. “ BYD has grown into a powerhouse in the new energy vehicle industry. When you look at the monthly rankings, they are always at the top, ” said CNBC’s Evelyn Cheng in Beijing.

Founded by Wang Chuanfu, the BYD brand started producing batteries for mobile phones in the 1990s. In 2003, the company suddenly shifted to automobiles and has since become the leading automobile brand in China, and they are also a major manufacturer of electric vehicle batteries.

“ BYD is one of the leading companies in the world that makes lithium-iron phosphate batteries ,” Sam Abuelsamid, principal analyst at Guidehouse Insights, told CNBC. He also explained the advantages over lithium-ion batteries, saying that lithium-iron phosphate batteries have a longer life and cost about 30-40% less to produce.

Part of BYD’s appeal is its price. Many of its models are priced lower than its competitors, with some starting at under $20,000. “ They launched the Seagull just a few months ago in Munich for $11,500,” Michael Dunne, CEO of Dunne Insights, told CNBC. “But in Europe and the U.S., you’d have to pay double that to get a car of similar size and value .”

BYD is now aggressively expanding globally, exporting more than 240,000 cars to 70 countries last year. It has announced plans to build a European factory in Hungary and is reportedly looking at a site in Mexico. “ They are definitely preparing for the US market, waiting for the right time, because the US and Europe are potentially lucrative markets for them,” says Michael Dunne. “They have to go in, compete and win here if they want to thrive globally .”

HUYNH DUNG (Source: CNBC)

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