How BYD's Product Offensive Pushed It To The Top

1 Woche, 4 Tage her - 30. Oktober 2024, insideevs
BYD Atto 3
BYD Atto 3
The automaker's focus on both BEVs and PHEVs led to huge growth over a short period of time.

It is no secret that China is a big market for electric cars. More than half of the world's BEVs (Battery Electric Vehicles) are sold there, so it is obvious that this country has the greatest supply.

According to my research, about 468 all-electric models (excluding commercial vans, light commercial vehicles, and rebadges) will be available by October 2024, of which 267 are Chinese (57 percent of the total). BYD is thus set to become an even more serious competitor to Western automakers.

Growing in size
BYD started producing cars only 22 years ago, with cars copied from the Western market and low-quality standards. Then, between 2018 and 2019, while other automakers faced pandemic and semiconductor problems, BYD accelerated its plans by becoming a leader in the domestic market. In 2023, it surpassed Volkswagen's sales and became the preferred brand in China.

The leadership resulted from a major product offensive that included new models in almost every mainstream segment. The strategy has been to target both the pure electric and plug-in hybrid car markets with cutting-edge software, infotainment, and battery performance.

The increased competitiveness of its cars has affected sales, which rose from 427,300 units in 2020 to 2.89 million last year (excluding volumes from BYD's other brands, such as Denza and Yangwang). For comparison, over the same period, Tesla's global volumes increased from 500,000 to 1.81 million units.

This year through September, BYD and all its brands sold 2.75 million units, a 32 percent increase, including 1.17 million pure electric cars, a 12 percent increase. Tesla sold 1.29 million electric cars, down 2 percent. The gap is closing.

How have they succeeded?
There are two main reasons for BYD's success. The first is price competitiveness, which is the result of strong support from the Chinese government and domestic production. BYD's vertical integration reduces costs and time and secures the key part of any electrified vehicle: the batteries.

The second reason is its strategy. Present in both the BEV and PHEV (Plug-in Hybrid Vehicle) segments, BYD has become the most comprehensive offering for those who want to switch from combustion engine cars to electrified ones. Its overall range is so diverse that it is now as large as that of Renault, Ford, or BMW and larger than that of Mazda, Mitsubishi, Skoda, or others.

BYD's market share in BEV sales.
January-August 2024

WhereMarket shareBYD's position in the best-selling car ranking
EuropeAustria9%Third
Denmark3%Ninth
Spain5%Sixth
Greece6%Third
Hungary14%Second
Ireland9%Fifth
Portugal6%Sixth
Finland3%Tenth
Asia-PacificIsrael26%First
Malaysia59%First
Singapore46%First
Thailand41%First
Australia20%Second
India3%Fourth
New Zealand13%Second
Philippines46%First
Indonesia28%Second
Latin AmericaBrazil73%First
Colombia34%First
Chile21%Second
Uunterstützen die Ukraine