BYD: Tesla is an ASSOCIATED PRESS for electric vehicle transformation
Chinese electric vehicle manufacturer BYD (BYDDY, 1211.HK) will surpass Tesla in 2023 and become the world’s largest seller of electric vehicles. This is truly a radical change for a company that was worried about survival just a few years ago. .
However, BYD Executive Vice President Li Ke emphasized that there should be no complacency in this matter.
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“We respect Tesla very much,” Li Ke said on Yahoo Finance Live. “They are the market leader. They provide great education to the market. Without them, I don’t think the global electric vehicle market would have been able to develop as quickly as it did. I think they are our partners…together to push the entire automotive industry towards electric vehicles.” Transition of times.”
BYD sold more than 3 million vehicles last year, surpassing Tesla, and more than 80% of its sales were in China. The company’s sales have increased by 1 million units each year in the past two years, allowing the company to quickly climb to the top of the industry.
This growth coincides with the explosive expansion of China’s electric vehicle market. According to the China Association of Automobile Manufacturers, new energy vehicles, including plug-in hybrids and pure electric vehicles, accounted for less than 5% of China’s car sales in 2019. Today, that proportion has soared to 35.7%.
Founded in 1995, BYD is a manufacturer of batteries for mobile phones and other electronic devices. By establishing a vertically integrated business model, BYD has successfully led China’s electric vehicle transformation. Li Ke said that about 75% of the parts in the brand’s vehicles are manufactured in-house, which allows the company to more easily control costs and time.
Li Ke said it takes about 18 months for BYD’s cars to go from concept to official launch, far faster than the time it takes for Western rivals to develop cars.
Government subsidies and tax breaks to promote the spread of electric vehicles have also made it easier for BYD and other Chinese automakers to expand. At a conference earlier this year, Ford (F) Chief Executive Jim Farle said China had a “20% to 30%” cost advantage, noting that BYD’s materials for its entry-level Seagull electric car cost $9,000 to $11,000.
BYD “can compete with innovation”
But Li Ke denied that BYD was a cheap electric car and said the company had developed and improved its technology so that it could compete with Western rivals in innovation. Its product line ranges from cars priced at $10,000 to the ultra-luxury Yangwang brand, which recently launched a sports car with a retail price of $233,000.
“In China, the message is very strong,” Li Ke said. “If you don’t invest in electric vehicles, you’re out. You’re going to die. You’re not going to have a future.”
The Chinese automaker is also backed by Berkshire Hathaway’s Buffett, who has owned 10% of the company since 2008.
Since American automaker Tesla entered China in 2020, BYD has been directly competing with Tesla in the Chinese market.
BYD Europe managing director Michael Shu (R) presents the BYD’s Yangwang U8 giant SUV on February 26, 2024 during a press day of the Geneva International Motor Show in Geneva. (Photo by Fabrice COFFRINI / AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images) (FABRICE COFFRINI via Getty Images)
Although Tesla CEO Musk initially derided BYD as a competitor in 2011, during Tesla’s most recent earnings call, he sounded a warning about the Chinese electric car maker’s global expansion, calling them “excellent.” .
“Frankly, if it weren’t for trade protection, they would have almost destroyed most of the other car companies in the world,” Musk said. The United States imposes a 27.5% tax on cars manufactured in China and imported into the United States.
Li Ke likened the threat from Chinese competition put forward by Musk and other top executives in the automotive industry to the entry of Japanese cars into the U.S. market. She added that despite Tesla’s success in China, Musk’s company and BYD had “less than 15%” overlap in buyers.
“Our real competitors are traditional fuel vehicles,” Li Ke said. “The more people involved in producing electric vehicles or plug-in hybrid vehicles, the better for the industry.”
2024-02-27 08:37:30
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