China’s BYD is again set to become the top electric vehicle (EV) maker in the world and it calls itself as the biggest car brand you’ve never heard of.
The automaker is gearing up to pip Tesla Inc as the new global leader in fully electric vehicle sales.
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| BYD hopes to replicate its China performance in other parts of the world. |
BYD likely to be top player this quarter
This is likely to happen in the current quarter. When it does happen, it will be both a significant turning point for the EV market and yet another affirmation of China’s growing clout in the global electric vehicle space.
The overall passenger vehicle segment is still dominated by familiar names like Toyota Motor Corp., Volkswagen AG and General Motors Co.
However, Chinese manufacturers such as BYD and SAIC Motor Corp. are making major inroads, especially with their electric vehicles.
China closer to being top exporter of passenger vehicles
After taking on the US, South Korea and Germany during the past few years, China now competes with Japan for the top global space in passenger car exports.
Around 1.3 million of the 3.6 million vehicles (more than a third) shipped from the mainland as of October this year were electric vehicles.
Speed of innovation matters in auto industry
“The competitive landscape has transformed in the auto industry,” said a China-based hedge fund manager that has invested in both BYD and Tesla.
“It’s no longer about the legacy and size of auto companies. Rather, it is about their speed of innovation and iteration that matters now. BYD started its preparations to be able to do this faster long ago than anyone even thought was possible. Now, other players in the industry have to accelerate to catch up,” he added.
The shift in the EV sales crown also depicts the shift in competitive dynamics between Elon Musk, the world’s richest executive, and BYD’s billionaire founder Wang Chuanfu.
Musk has been saying not enough consumers can buy Tesla EVs with such high interest rates but his rival Wang has been on the offensive.
BYD offers half a dozen higher-volume cars and all of them are cheaper than Tesla cars, even compared to the cheapest Tesla Model 3 in China.
BYD owner's dream realised
The change that will come in the global EV ranking is a dream of Yang, who began his journey when China was just starting to build its electric car industry, which has turned world-beating.
E-Vroooom’s views
While BYD continues to dominate in the China market, replicating this performance in other global markets will prove to be a challenge for the Chinese EV giant.
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