This is how BYD is heading to the top of the world

Leadership comes from a major product offensive.

Photo by: Motor1.com

By: Juan Felipe Munoz

Oct 24, 2024 at 7:00am ET

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It's no secret that China is a major market for electric cars. More than half the BEVs (Battery Electric Vehicles) sold in the world are sold in China. So it's obvious that China is the country with the largest supply.

According to my research, some 468 all-electric models (excluding vans and light commercial vehicles and including rebadges) will be available by October 2024, of which 267 will be Chinese (57% of the total). BYD is therefore set to become an even more serious competitor for Western carmakers.

Getting bigger and bigger

BYD began producing cars only 22 years ago, with cars copied from the Western market and low quality standards. Then, between 2018 and 2019, as other carmakers faced pandemic and semiconductor problems, BYD accelerated its plans and became the leader in its home market. By 2023, it had overtaken Volkswagen's sales and become China's favourite brand.

This leadership is the result of a major product offensive that includes new models in almost every consumer segment. The strategy has been to target both the pure electric and plug-in hybrid markets with state-of-the-art software, infotainment systems and batteries.

BYD Group worldwide sales in units

The increased competitiveness of its cars has had an impact on sales, which rose from 427,300 units in 2020 to 2.89 million last year (not including volumes from other BYD brands such as Denza and Yangwang). By comparison, Tesla's global volumes rose from 500,000 to 1.81 million units over the same period.

This year to September, BYD and all its brands have sold 2.75 million units, up 32%, including 1.17 million pure electric cars, up 12%. Tesla sold 1.29 million electric cars, down 2%. The gap is closing.

Worldwide sales of electric vehicles (number of Teslas sold for 1 BYD electric vehicle)

How did they do it?

There are two main reasons for BYD's success. The first is price competitiveness, which is the result not only of substantial support from the Chinese government, but also of domestic production. BYD's vertical integration enables it to reduce costs and lead times and to secure the key element of any electrified vehicle, namely the batteries.

The second reason is its strategy. Present in both the BEV and PHEV (Plug-in Hybrid Vehicle) segments, BYD has become the most complete offering for those wishing to switch from combustion engine cars to electrified cars. Its overall range is so diverse that it is now as large as that of Renault, Ford or BMW, and larger than that of Mazda, Mitsubishi, Skoda and others.

The next target

Last year, 95% of the BYD Group's total sales came from China. As its cars meet global standards, it is aggressively paving the way into other markets. So far, the most progress has been made in South East Asia and Latin America, but BYD knows that to become a truly global player, it needs to expand its presence in Europe, which is virtually off-limits to the US.

What do you think?

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Comments

Given the prices and products it currently offers, it could become a real threat to Western manufacturers and Tesla. We'll see what happens in the coming months.

BYD's market share of BEV sales

January-August 2024

Where	Country	Market share	BYD's position in the ranking of best-selling cars
Europe	Austria	9%	Third
	Denmark	3%	Ninth
	Spain	5%	Sixth
	Greece	6%	Third
	Hungary	14%	Second
	Ireland	9%	Fifth
	Portugal	6%	Sixth
	Finland	3%	Tenth
Asia-Pacific	Israel	26%	First
	Malaysia	59%	Leading
	Singapore	46%	Largest
	Thailand	41%	First
	Australia	20%	Second
	India	3%	Fourth
	New Zealand	13%	Second
	Philippines	46%	First
	Indonesia	28%	Second
Latin America	Brazil	73%	First
	Colombia	34%	First
	Chile	21%	Second