The Chinese electric vehicle manufacturer BYD is closing in on Tesla, the long-time market leader.
How did BYD surpass Tesla in sales?
Aggressive price cuts helped Tesla exceed analysts’ estimates for its sales in the last quarter of 2023, but BYD performed even better, selling 526,409 electric vehicles in the three-month period, outpacing Tesla’s units which totaled 484,507.
BYD’s results were bolstered by rising sales of small, low-cost electric vehicles like the Seagull and Dolphin models, according to Cui Dongshu, secretary general of the China Passenger Car Association. It is unclear whether this growth in small cars can be sustained.
What does the future hold for BYD?
BYD’s growth has largely come from the domestic market, benefiting from China’s massive market and government policies encouraging electric vehicle production. BYD competes with Tesla in volume but not in global reach yet.
The company has expanded into new markets, increasing its exports fourfold to reach 242,765 vehicles in 2023, representing 8% of its sales. Last month, BYD announced it would build an electric vehicle plant in Hungary, its first factory in Europe.
Chinese electric vehicle manufacturers are still in the early stages of moving abroad and may face regulatory or commercial hurdles, according to Jing Yang, director of corporate research in China for Fitch Ratings. The European Union has launched a trade investigation into support provided to electric vehicle manufacturers in China, and the U.S. has passed legislation preventing consumers from receiving the full $7,500 tax credit for an electric vehicle if its battery components are from China or some other countries.
How did BYD get its name?
Founder Wang Chuanfu said BYD, or “Biadi” in Chinese, was chosen primarily because it is a simple and uncommon name, which are two characteristics that make it easy to register a new company in China.
At the time, it was a rechargeable battery manufacturer founded by Wang in Shenzhen in 1995. Through batteries, BYD expanded into other fields, including consumer electronics. BYD launched an automotive division in 2003 that initially made gasoline vehicles. By 2008, Wang was targeting the electric vehicle market.
BYD stopped producing gasoline-powered cars. It also manufactures electric buses, including at a plant in Lancaster, California. While the origin of its name remains unclear, the company has transformed its acronym into a slogan: “Build Your Dreams.”
Source: https://apnews.com/article/byd-biyadi-tesla-ev-automaker-9389c7355326c6b84091389d3616b44a
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