BYD on steroids? Chinese EV giant rolls out one million cars in three months

Calling BYD's recent expansionist moves as a global march would be underestimating the speed at which the Chinese electric vehicle (EV) company has been moving. It is more a bullet-like motion than a march and this is once again highlighted with the announcement from the company that it has rolled out one million units in the past three months alone.

BYD, also called Build Your Dreams, is the largest manufacturer of all-electric and hybrid vehicles in China. It is now also one of the largest EV sellers anywhere in the world, giving enormous competition to US-based Tesla. But while Tesla has a global presence, BYD had restricted itself to within the Chinese territory till 2021. Not anymore.

BYD has built a cumulative total of nine million vehicles till date and that is seriously quick for a company that traces its roots back to just over two decades. It has come a fair distance from 2005 when it introduced its first mass-produced car, BYD F3. The acceleration though has been quicker ever since it decided to focus on new-energy vehicles or NEVs alone, a decision taken in March of 2022. In 2023, the company would sell 3,024,417 across the world, significantly higher than 427,302 sold in 2020, as per data from Chinese Passenger Cars' Association.

BYD on global conquest path

BYD has made a determined effort to invade and capture foreign markets and currently offers its models in 70 countries. It also has established manufacturing bases in several countries outside of China.

While the company offers vehicles across body styles, it is its smaller offerings that are its biggest hits. In India, the most-affordable BYD is the Atto 3 which carries an asking price of ₹25 lakhs (ex-showroom). The company offers two other models here - Seal and the e6. The e6, however, will soon be replaced with the eMAX 7 MPV on October 8.

The world over, however, its most popular model is the BYD Dolphin. The Dolphin was the best-selling electric car in China and has made a solid mark in several Latin American and African markets as well. This is primarily because of its pricing - 99,800 yuan in China (approximately ₹12 lakhs), and also because of its two battery pack options and a claimed range of around 300 kms. It is a well-kitted vehicle with plenty of features and a decent drive trait as well.

Headwinds in the path of BYD

While BYD has indeed charted an aggressive path in international waters, it has also thus far steered clear of the US market. Company officials have previously blamed a complex EV field of play here as the main reason for staying away, even though an entry in the future has not yet been ruled out.

Much would depend on the tariff war that is being played out between US and the European Union on the one end and China on the other. The issue effectively is that western markets accuse Chinese electric car manufacturers of benefiting from state-sponsored subsidies at home which allow manufacturing cost to come down. This in turn allows them to sell their EVs at lower costs in global markets, hurting non-Chinese players. Earlier this year, both the US and the EU announced higher tariffs on made-in-China EVs coming in via import route. This has prompted angry responses from China although no tit-for-tat measure has been deployed by Beijing as yet.

BYD may be better positioned than many of its fellow Chinese players to tackle the issue because it has started using its facilities outside of China to cater to demand in European markets. But at a time when the BYD vs Tesla battle remains hot, much would depend on which way the geo-politics of the world sway.

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