Chinese electric car company accelerates in the global race

When it comes to the popularity of electric cars in the world, most people will think of Tesla - the current global leader. However, the best-selling electric brand in the emerging clean fuel vehicle markets in Brazil, Israel and Thailand is not Tesla, but BYD. The Chinese tram company is increasingly present on the streets from Sydney (Australia), Delhi (India) to Motevideo (Uruguay).

In the first quarter of this year, the Chinese automaker surpassed Volkswagen to become the best-selling car brand in China. This is a blow to Volkswagen's dominance here for the past 15 years. BYD accounts for 39% of new fuel vehicle sales (electric or petrol-electric) in China, the world's largest car market, according to the China Passenger Car Association.

BYD is also actively expanding internationally. Recently, they entered the Mexican, Spanish and UK markets. This month, they plan to try their luck in Italy, with a launch party in Turin, the home of Fiat. After exporting the first batch of cars to Norway in 2021, they are now selling cars to Singapore and Sweden. These are real wins for a Chinese consumer goods brand.

“BYD has suddenly become one of the biggest automakers in the world,” said Steve Westly, a former Tesla executive.

BYD is currently run by founder and Chairman Wang Chuanfu. BYD is an acronym for Build Your Dreams. This car company is also an example of the ambition of Chinese President Xi Jinping. It is increasing the power of this country in the world. BYD has sold products to 53 countries and regions.

Berkshire - Warren Buffett's investment company - first invested in BYD in 2008 with $22 million. Buffett once praised Wang Chanfu and even visited the company's factory in China in 2010.

BYD is popular for its eye-catching design, wide range of features and affordable price. Its latest electric hatchback – the Seagull – starts at just $10.400. 55 kW motor, 30 kWh battery, the ability to run continuously for 300 km after each charge and a top speed of nearly 130 km per hour.

BYD manufactures many components in-house, thereby better controlling costs and reducing production costs. Unlike many other electric vehicle manufacturers, they make their own batteries and are currently the world's second largest battery manufacturer. BYD also makes its own semiconductors. This helps them not to experience a chip shortage like other car manufacturers during the pandemic.

At BYD's headquarters on the outskirts of Shenzhen, tens of thousands of employees are working in more than 10 office buildings and factories. They travel back and forth using an elevated railway built by BYD itself. There are also employee dormitories and a museum that honors hundreds of engineers and the company's financial achievements. An inner wall plots BYD's revenue, from almost zero in 0 to 1995 billion yuan ($424 billion) in 60.

Last year, BYD sold 1,8 million new energy vehicles, more than double the previous four years combined. Their number of employees globally also doubled, to 4. This number is 570.000 higher than the current largest car company in the world, Toyota Motor. Last year also marked a turning point for BYD's international sales. This company only exported cars in 200.000.

In terms of revenue from the "home" market, 75% of BYD's revenue currently still comes from China. In contrast, Tesla records half of its revenue from the US. Toyota even only gets 25% of its sales from Japan.

This year, BYD aims to sell 3,7 million fully electric and petrol electric vehicles. Meanwhile, Tesla said it could produce 2 million electric vehicles by 2023. However, BYD has an advantage because Musk only produces pure electric cars.

BYD became the leading clean-energy car company in Brazil, Colombia, Israel and Thailand in the first quarter. In these countries, it surpassed BMW, Renault and also compatriots Zhejiang Geely, Hozon New Energy Automobile. . In Australia, India and New Zealand, they are currently in the top 5.

Michael Barnden – a retired teacher in Adelaide, Australia in November 11 switched to the BYD Atto 2022 5-seater electric car. This is not the first time Barnden has used an electric car. Four years ago, he bought a hybrid Hyundai Ioniq. But when he read an advertisement for the Atto 3, with heated seats and a range of 4 km, he switched to this type.

Half a world away, the BYD tram also attracts customers like Facundo Fernandez, a taxi driver in Montevideo (Uruguay). He decided to buy BYD because it was cheaper than Western brands.

“Gasoline is very expensive in Uruguay,” explains Fernandez. It only takes about 500 pesos (13 USD) to charge the battery, his car can go 400 km. But if you fill up the gas tank, it will cost you 2.500-3.000 pesos.

Fernandez said that next year, he will buy a larger BYD, so that passengers can sit more comfortably. “Chinese brands are competitive because they have similar features and are cheaper,” he said.

BYD's going world is still missing a key market. That is America. Despite selling electric buses here, BYD currently has no plans to enter the passenger car market. US President Joe Biden's Inflation Reduction Act only provides tax incentives for electric vehicles made in North America. Stella Li, BYD's head of North America, said the company doesn't have to be in all markets. They are present only where they feel ready.

Many European and Southeast Asian governments are also interested in BYD. The company is in discussions with authorities about building a factory in France, Les Echos newspaper reported in May. Last month, BYD also confirmed to Bloomberg plans to manufacture in Vietnam for local sale and export to Southeast Asia.

This car company is building a factory in Thailand. This will be their first factory abroad. They are also considering production in the Philippines and Indonesia. In Brazil, Ford Motor is negotiating the sale of one of its Bahia plants to BYD.

"What they've done in such a short time is amazing," Westly concluded.

Ha Thu (according to Bloomberg)