- BYD wants to be the largest car manufacturer in the world within five years.
- It claims that it doesn’t need the U.S. market to do this, relying on organic growth in other international markets.
- BYD sold 4.5 million cars worldwide last year.
It’s no secret that BYD has been gunning for world domination. China’s biggest EV company has brought its electric and plug-in hybrid models to markets all over the world lately, and sales have taken off outside of China. It’s rocketed to fifth place in the hierarchy of best-selling car brands in the world, beating Ford for the first time last year. According to BYD founder Wang Chuanfu, the automaker wants to be number one in the next five years.
This is a lofty goal. BYD sold 4.5 million vehicles worldwide last year, which is respectable, but is also less than half of the 10.5 million vehicles that Toyota, the global leader, shipped globally. And yet, BYD’s executives claim they can take the top spot. Moreover, BYD Executive Vice President Stella Li told the Financial Times this week that BYD doesn’t need the U.S. to achieve this goal either.
She said the automaker can grow sales organically, without having to acquire new brands. She feels that advances in charging technology and a strong offensive in markets outside of China will get BYD to that top-selling spot.
It’s a tall task. Americans buy more than 15 million vehicles every year, making it the U.S. the second largest car market in the world behind China. Trying to make up for that elsewhere in the world will not be easy. Just look at Toyota; about 2.5 million of its sales last year happened in the United States.
Photo by: BYD
Of course, BYD may have no choice. Geopolitical tensions between the U.S. and China are high. The Biden administration instituted the 100% tariff on imported cars. There’s a tightening ban on connected cars from China, which has pushed out Polestar and made Chinese-developed car software impossible to sell on American roads. Arguably, we’re further away than ever from seeing a BYD rolling down U.S. streets, despite both Canada and Mexico welcoming the cars.
BYD’s Chinese sales numbers have trended downward for the eight months, only reversing in June. As a whole, growth for car sales in China seems to have hit a wall, as the Chinese government has pulled back on EV incentives, and as the country faces economic softness. It’s looking increasingly like BYD’s growth has to come from international markets. The company is taking steps to craft specific products for markets that aren’t China. The Dolphin G is a small hatchback made for Europe, for example. The Shark pickup is sold in markets like Latin America, Australia, and the UK.
Can BYD truly dethrone Toyota without the U.S. market? I’m skeptical. Fortunately for BYD, perhaps, sales of electrified vehicles in the U.S. are hitting a plateau due to the Trump administration and changing regulations. But appetite globally continues to grow.
Contact the author: Kevin.williams@insideevs.com