BYD: Chinese electric car giant, new emperor of the automobile industry

© BYD

Wang Chuanfu, a battery scientist, founded BYD in 1995. At the time, no one imagined that this small company would one day become Tesla's biggest competitor.

However, BYD has now established itself as the undisputed leader in electric cars in China and is setting out to conquer the world.

From battery to electric car, BYD's meteoric rise

© BYD

BYD, an acronym for “Build Your Dreams”, started out by making rechargeable batteries for mobile phones. Wang Chuanfu, a visionary, quickly saw the potential of electric cars. In 2003, he decided to enter the automobile industry.

At first, BYD struggled to convince. Its early models looked like cheap copies of Japanese cars. But Wang persevered and invested heavily in research and development. Its bet: to create an affordable and high-performance electric car.

In 2020, BYD unveiled its revolutionary battery “Blade”. This innovation propelled the company to the top. Sales exploded, going from 180,000 vehicles in 2020 to 1.86 million in 2022. BYD overtakes Volkswagen in China and is hot on Tesla's heels worldwide.

BYD's winning strategy with electric cars for all

BYD's secret? Affordable electric cars without compromising on quality. The Dolphin, an electric city car, sells for around 25,000 euros in Brazil. It offers 250 km of autonomy and features worthy of high-end cars.

BYD controls the entire production chain, from batteries to semiconductors. This vertical integration allows it to reduce its costs and innovate more quickly than its competitors.

The company also focuses on design. It has recruited Wolfgang Egger, former designer of Alfa Romeo and Audi. The result: European-style cars that appeal well beyond China.

BYD’s conquest of the world knows no borders

BYD is not content with the Chinese market. Its global expansion strategy is ambitious and methodical. The company is first establishing itself in emerging countries, which are less protectionist than Europe or the United States.

In Brazil, BYD started by selling electric buses and solar panels. Then, the company introduced its passenger cars. It is now building its first assembly plant outside Asia in the state of Bahia.

In Europe, BYD is moving cautiously. The company has opened luxury showrooms in London, Milan and Paris. It is first targeting smaller markets such as Malta, where it sells its Atto 3 compact SUV.

BYD's challenges, protectionism and geopolitical tensions

© BYD

BYD's expansion worries historic manufacturers and Western governments. In the United States, the Biden administration has imposed 100% tariffs on Chinese electric cars. The European Union is also taking steps in this direction .

BYD also faces accusations of dumping (selling at an unfair price to competitors) and links to the Chinese government. The company strongly denies these allegations. It emphasizes its status as a private company and highlights its partnership with Warren Buffett, who invested in BYD in 2008.

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To get around these obstacles, the manufacturer is banking on local production. The company plans to open factories in Turkey and Mexico. These locations would allow it to export to Europe and the United States without paying taxes.

The future of BYD, a global automotive giant ?

BYD has big ambitions. The company wants to become a recognized global brand, like Toyota or Volkswagen. It is investing heavily in innovation, particularly in autonomous cars and next-generation batteries.

The Chinese manufacturer is not limited to mass-market cars. It also develops electric supercars like the Yangwang U9, with a bold design.

BYD enjoys the support of the Chinese government, which sees the electric car industry as a strategic sector. But the company will have to overcome protectionist barriers and geopolitical tensions to succeed in its global expansion.

BYD vs. Tesla in the duel of the century

In 2023, BYD briefly surpassed Tesla in the number of electric vehicles sold worldwide. Elon Musk, who once made fun of BYD cars, is no longer laughing.

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The two companies have different strategies. Tesla is banking on technological innovation and the prestige of its brand, while BYD is targeting the mass market with affordable cars and a very wide range.

This competition could accelerate the transition to electric vehicles. Consumers around the world would be the big winners, with electric cars that are increasingly efficient and accessible.

BYD in the French landscape

BYD officially entered the French market in 2022. The manufacturer has chosen a gradual approach, starting by opening showrooms in strategic locations. BYD aims to position itself as an affordable alternative to European and American manufacturers. The Atto 3, for example, is available from 37,990 euros, a competitive price for an electric SUV in this category. This is without counting on a current promotion of 8,000 euros, lowering the price to 29,990 euros.

This aggressive pricing strategy, coupled with innovative technologies, could appeal to French motorists looking for good value for money. However, and despite its assets, BYD must convince them of the quality of its products, given the prejudices about Chinese cars. The brand must also quickly expand its network in order to compete with established manufacturers.

Build your Dreams

In less than 20 years, BYD has gone from being a battery manufacturer to a global automotive giant. Its meteoric rise is shaking up a century-old industry and accelerating the electric transition.

BYD still faces many challenges. The company will have to overcome protectionist barriers, reassure itself of its independence from the Chinese government, and continue to innovate to maintain its technological lead. But one thing is for sure, BYD has already changed the face of the global automotive industry.

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