In the U.S., Tesla could also be leading the electric vehicle revolution, but overseas, the automaker faces serious competition. In China, the world’s largest electric vehicle market, Tesla is losing ground to domestic automakers who’re increasingly constructing higher cars at unbeatable prices, an important of which is the Warren Buffet-backed company.
BYD dethroned Tesla because the world’s largest electric vehicle maker within the fourth quarter of 2023, selling more battery-powered vehicles than its U.S. rival.
“BYD has emerged as a powerhouse in the new energy vehicle industry,” said Evelyn Cheng, CNBC’s Beijing correspondent. “When you look at the monthly rankings, they are always at the top.”
Founded by Wang Chuanfu, BYD began producing cell phone batteries within the Nineties. By 2003, the corporate focused on cars and has since change into a leading automotive brand in China in addition to a major manufacturer of batteries for electric vehicles.
“It’s one of the top lithium iron phosphate battery companies in the world,” Sam Abuelsamid, principal analyst at Guidehouse Insights, told CNBC. He also explained the benefits of lithium-ion batteries, stating that they’re long-lasting and “cost approximately 30-40% less per kilowatt-hour of production.”
Part of BYD’s mass appeal is price. Many of its cars undercut the competition, with several models starting at $20,000.
“Just a few months ago, the $11,500 Seagull launched in Munich,” Michael Dunne, CEO of Dunne Insights, told CNBC. “You’d have to double that price and then some to get an entry-level vehicle here in the U.S. and Europe. Very competitive in the sub-$35,000 segment.”
BYD is currently expanding aggressively around the globe, exporting greater than 240,000 cars to 70 countries last yr. It has announced plans to construct a European factory in Hungary and is reportedly in search of a location in Mexico.
“They are definitely preparing to enter the U.S. market, waiting for the right moment,” Dunne said. “The United States and Europe promise them a profitable market. They need to come in here, compete and win to thrive around the world.”
Watch the video to learn the way BYD transformed from a battery manufacturer to an electric vehicle giant and what’s next for the corporate.