In the bustling city of Beijing, the competition for dominance in China’s electric car market shows no signs of cooling down over the next two to three years, according to insights shared by BYD. The prominent Chinese battery and electric car manufacturer expressed its intent to collaborate with Tesla to further nurture the growth of the market.
BYD’s impressive growth trajectory in recent years is underscored by its total vehicle production in 2023, which surpassed that of Elon Musk’s Tesla. This achievement positions BYD as a formidable contender in the evolving landscape of electric vehicles.
The fierce competition that has characterized China’s electric car market over the last two years has notably driven down prices globally, as highlighted by Yunfei Li, the General Manager of Branding and Public Relations at BYD, during a press briefing on Monday.
Li remarked in Mandarin, translated by CNBC, “I think this is an inevitable process, but it may take another two to three years. In the end, many brands that aren’t able to compete in the market will be eliminated.”
Industry data reveals that battery-only and hybrid-powered cars, categorized as new energy vehicles, accounted for over one-third of new passenger cars sold in China last year. This surge in sales is attributed to government subsidies and license plate restrictions, providing significant impetus to the new energy car market. Meanwhile, both startups and traditional automakers are integrating cutting-edge technologies to enhance appeal and attract buyers in this dynamic and rapidly evolving market.
According to statements from Li, BYD is poised to stand out as one of the few car companies expected to thrive in the challenging environment of the Chinese electric car market. This optimism stems from BYD’s strategic involvement in the supply chain and its approach of catering to various consumer price segments through sub-brands.
Notably, the majority of BYD’s vehicle lineup falls within the mass-market category. To diversify its portfolio, the company introduced a high-end brand named Yangwang last year, featuring the U8 SUV with a price exceeding 1 million yuan ($141,000).
BYD’s premium electric sedan, the Han, competes in a price range comparable to Tesla’s offerings, surpassing 200,000 yuan ($28,000). In a noteworthy achievement, BYD outpaced Tesla in the fourth quarter by selling more battery-powered cars.
Separately, BYD revealed in a filing with the Shenzhen Stock Exchange on Monday that its profits for the last year are expected to surge by at least 74%, reaching a noteworthy range of 29 billion yuan to 31 billion yuan ($4.09 billion to $4.37 billion). While Tesla reported a 15% decrease in gross profit to $17.66 billion in 2023, with China contributing approximately 22% of its revenue, BYD’s financial success primarily stems from its operations in China, supplemented by its expanding presence in international markets such as Europe, South America, and other parts of Asia. Despite cooperating with the European Union’s investigation into subsidies for Chinese electric car companies, BYD remains steadfast in its global expansion strategy, emphasizing collaborations with local partners and the establishment of factories in diverse markets.
Notably, the majority of BYD’s vehicle lineup falls within the mass-market category. To diversify its portfolio, the company introduced a high-end brand named Yangwang last year, featuring the U8 SUV with a price exceeding 1 million yuan ($141,000).
BYD’s premium electric sedan, the Han, competes in a price range comparable to Tesla’s offerings, surpassing 200,000 yuan ($28,000). In a noteworthy achievement, BYD outpaced Tesla in the fourth quarter by selling more battery-powered cars.
