A recent Bloomberg report addressed the significant progress made by the Chinese electric car company BYD in the global market, with a clear focus on competitive prices and rapid expansion.
The report stated that the company has begun selling its fully electric car, “Ato 3,” in small markets such as Malta, a country with a population of about 564,000 people.
The car comes with a price tag of approximately $28,000 and features heated vegan leather seats and a 360-degree rotating screen, making it a popular choice in emerging markets that do not have a local car industry.
Yu Chang, CEO of Auto Foresight in Shanghai, commented in an interview with the agency that these markets are described as “chicken rib markets,” which when combined represent more than 10 million cars annually.
BYD’s rapid expansion surprised the global automobile industry. The company’s sales increased 15-fold to reach 3 million cars in just 3 years. It is now present in 95 markets and announced the establishment of assembly plants in 10 countries.
This rapid global expansion led to the imposition of protectionist measures by the United States and the European Union. The former imposed a 100% customs tax on Chinese electric cars, while the latter imposed a 17% tax on BYD imports, citing concerns about government support. .
Bloomberg quoted the German Kiel Institute for the World Economy as saying that BYD receives more government support than market-based economies.
The global rise of BYD
BYD, which stands for “Build Your Dreams,” was founded by Wang Quanfu, a former battery scientist. The company originally began focusing on rechargeable batteries for cell phones and power tools, but moved into electric cars in 2003.
Wang’s innovations in battery technology – supported by China’s EV-friendly policies and the large size of the domestic auto market – have helped the company achieve what many competitors have not: build affordable electric cars on a large scale while maintaining profitability.
Since introducing the new battery technology in 2020, BYD has overtaken major players such as Tesla and Volkswagen in China, and briefly became the largest seller of electric vehicles globally in late 2023, according to Bloomberg.
Stella Lee, Executive Vice President of BYD, emphasized that the company’s success is not only about profit, but also about being a “technology pioneer changing the world.” However, Lee admits that tariffs in the US and Europe pose a major challenge to the company’s global expansion.
Despite these challenges, BYD continues to achieve success in international markets, especially in emerging economies such as Brazil and Mexico, where the company has adapted its products to suit the needs of the local market.
In Brazil, BYD is building its first car assembly plant outside of Asia, and has signed agreements to convert the country’s bus fleet to electric buses. In Mexico, the company is offering affordable electric cars to local consumers, the agency said.
As BYD expands globally, it continues to challenge traditional auto companies in Europe and the United States.
According to Flavio Volpe, president of the Auto Parts Manufacturers Association of Canada, “BYD’s entry into the US market may depend on future political shifts, as the company positions itself vulnerable to any potential changes in US trade policy.” At the same time, the company is working on long-term strategies to build its brand globally, with the aim of becoming a household name in the electric vehicle market.
