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Chinese electric car giant BYD on track to overtake Tesla in 2023

beijingwalker

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Chinese electric car giant BYD on track to overtake Tesla in 2023


05 DECEMBER 2022 - 16:37
DANNY LEE

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The BYD Atto 3 electric car. Picture: REUTERS/ATHIT PERAWONGMETHA

Covid-19 lockdowns, supply chain woes and power shortages hampering China’s motor industry have not been enough to halt BYD’s relentless advance to dominate the world’s biggest electric vehicle (EV) market.

Now, it has Elon Musk’s Tesla in its sights.

The Berkshire Hathaway-backed vehicle maker will enter 2023 on a roll, with record vehicle sales, revenue and profitability, driven by the appeal of its affordable cars in China’s mass market. It is now making a play for cashed-up buyers in the premium end of the market with two luxury brands, pitting itself against Tesla’s pricier cars.

“The two segments BYD doesn’t have exposure to are the luxury SUV and sports car markets, which we expect BYD will expand into in 2023,” says Bridget McCarthy, head of China operations for green tech-focused US hedge fund Snow Bull Capital. “These are the two most profitable vehicle segments, so bottom-line growth in 2023 will excite investors.”

The first of the two new brands, Yangwang, will be launched in the first quarter, targeting affluent professionals with promises of high performance and disruptive technologies.

More intriguingly, BYD is touting a new brand that it says will be “grounded in highly professional and personalised identities” to cater to the “diversified demands” of customers. It has said little more about the brand.

After ceasing production of combustion engine-only cars earlier in 2022, BYD “has now established itself unequivocally as the market leader in the race to electrification, and I believe it will parlay that into a multibrand strategy,” says Bill Russo, founder and CEO of Shanghai-based advisory firm Automobility. “They’ll be a pioneer if they do.”

The new brands also happen to be the kind of EVs fit for the US, a market BYD has yet to enter with its growing electric line-up.

Russo also expects the hardware-driven BYD to embrace software in a big way, as it is seen as a shortcoming.

“What BYD lacks that others have is more of a digital DNA,” he says. “BYD is still a hardware company. As good as it is assembling an EV profitably at scale, it hasn’t proven itself to be a tech-driven software-defined technology company.”

The Chinese EV giant has managed to withstand most production disruptions, in part thanks to its vertically integrated supply chain. Production and deliveries hit another record in November, topping 230,000 vehicles.

The rise and rise of BYD puts it on course to match, and maybe even exceed, Tesla in pure EV car sales by the first quarter of 2023. With critics pointing to BYD’s lower levels of revenue and profitability versus Tesla, the Shenzhen-based juggernaut may close that gap by broadening its line-up with more top-end vehicles.

“Can the Chinese in a hypercompetitive market establish a sustainable premium price position with Chinese consumers?” asks Russo. “It hasn’t been done sustainably.”

Bloomberg News

 

beijingwalker

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China Carmakers Are Ordering Their Own Ships to Get Export Ready​

  • BYD, SAIC seek to avoid supply chain snarls with own vessels
  • Trend is bold bet on lasting global demand for Chinese cars
2022年12月5日 GMT+8 07:00
Two of China’s biggest automakers are so determined to ensure their cars make it from factories on the mainland to anyone who wants to drive them they’ve bought their own ships.

BYD Co., which only makes electric and hybrid cars, is going the extra length to avoid any last mile supply chain snarls, ordering at least six ships in October, each with the capacity to carry 7,700 cars, for 5 billion yuan ($710 million). State-owned SAIC Motor Corp., which already operates the world’s fifth-largest shipping fleet via transport arm SAIC Anji Logistics Co., has a tender out for seven new carriers that can each hold 8,900 vehicles.

 

Beast

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BYD Han is amazing. Tesla looks like a cheap car in comparison. Tesla only has marketing due to American media.
Tesla will face heavy competition in 2023 when more Chinese car variety comes into world market. The future of Tesla don't look good. The MG4 is selling like hotcakes in EU.
 

kankan326

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When the day Apple, Tesla, Google, Facebook are defeated by Chinese companies, the day when China surpassese US will come
 

kankan326

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Then that day is still very far off because that’s not happening soon
It is far but not so much as you think. Huawei would have already surpassed Apple if it weren't for US government bans. BYD seems very possible to win more EV markets than Tesla. Tiktok already surpassed Facebook. Huawei also has Harmony OS the challenge google's Andriod.
 

Han Patriot

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View attachment 903592

Tesla still remains well out in front
In China, the world's largest market, ability is oveetaking hype. If you allow fair access to BYD in US, Tesla is toast, same with Huawei, same with YMTC. You can hide behind protectionism but in the end, ability prevails, printing money to subsidize Tesla for 10 years,thats capitalism?that's socialism.
 

Beidou2020

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Anyone choosing any Tesla over the BYD Han is a really stupid person. Watch the review by a European of BYD Han.

 
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