BYD – From a Battery Manufacturer to a Global Powerhouse

From a battery manufacturing company with only 20 employees, BYD has now become a top electric car manufacturer in the world, directly competing with electric car giant Tesla.

BYD was established in China in 1995 with only 20 employees. The company opened its first international office in Rotterdam, the Netherlands three years later. In 2000, BYD started construction on its first industrial plant in Shenzhen. In 2007, this plant began operation and has been the headquarters of BYD ever since.

Initially, BYD was a supplier of lithium-ion batteries for Nokia and Motorola phones. In 2003, BYD acquired Xi’an Qinchuan Automobile and officially entered the automotive industry.

The first product BYD launched was a small sedan called the F3. Three years later, in 2008, the company introduced the electric hybrid version of the car called the F3DM.

At the same time, Warren Buffet’s investment fund Berkshire Hathaway unexpectedly bought a large amount of BYD’s shares. Seizing the opportunity, the company quickly expanded its production and focused on the electric car segment.

Currently, BYD not only offers passenger cars but also buses and trucks. They even have a bus manufacturing plant in the United States as well as in other countries.

BYD also established the subsidiary brand Denza and a luxury car brand called Yangwang. In addition, BYD builds its own ships to transport cars for export, maximizing transportation cost savings.

According to reports, BYD has officially surpassed Tesla to become the world’s leading electric car manufacturer in terms of sales volume.

Specifically, in Q4/2023, the Chinese electric car company sold 525,409 electric cars, surpassing Tesla’s 484,507 cars. Although both companies achieved record sales in the last three months of the year, Elon Musk lost the top spot to the Chinese competitor.

However, if we consider the entire year of 2023, Tesla still sold more electric cars than BYD, excluding hybrid models. Specifically, Tesla sold 1.8 million electric cars while BYD sold 1.57 million, a 73% increase compared to the same period last year.

In addition, BYD also sold an additional 1.44 million hybrid cars, further solidifying its position in the industry. Although BYD sold more electric cars throughout 2023, the gap of 400,000 electric cars in 2022 between BYD and Tesla has now narrowed to only 230,000.

The rise of BYD showcases the increasing dominance of China in the electric car industry. Chinese automakers have adapted faster than Western car companies in bringing high-tech electric cars to the market.

BYD’s electric car models are more competitively priced compared to Tesla, enabling the Chinese company to gain an advantage in expanding its market share. Although BYD does not currently sell electric cars in the US market, it is expanding globally, including in Europe.

Not only a successful electric car manufacturer, BYD is also one of the largest electric battery suppliers in the world. All the batteries used in their cars are self-produced. Many brands have expressed interest in using BYD batteries, including Mercedes-Benz.

Currently, many European countries are struggling as BYD and other Chinese car makers are increasingly expanding, causing domestic car manufacturers to lag behind. These countries are considering imposing high import tariffs on Chinese electric vehicles, similar to what the US is doing to prevent the “cheap electric car wave” from this Asian country.

As of 2021, BYD has exported and expanded its operations to at least 40 countries worldwide, including regions such as the Middle East, South America, Africa, Southeast Asia, the Pacific, and Europe. Vietnam is also likely a country that BYD is targeting in the near future.

TH (Tuoitrethudo)