BYD: Leading the Race for the EV Chequered Flag
In the global car race to replace the internal combustion engine with the greener alternative of electric vehicles, BYD has revealed itself as a waking giant. Leaving Volkswagen standing “at the lights” and overtaking Tesla as suppliers of battery-powered cars in China, it has set its eyes on conquering Europe.
How has BYD performed in the global race to be the leading electric car maker?
Having started life as a battery manufacturer, BYD entered the automobile industry in 2003. Despite Volkswagen having been China’s first foreign car manufacturer and leading automobile brand since 1986, last year BYD knocked the German carmaker off pole position in China’s automobile sales chart. BYD’s sales have increased by around 43%, overtaking both Volkswagen and Toyota. BYD sold a record 526,000 vehicles in the final quarter of 2023 and just over 3 million sales for the year as a whole. Tesla remained the largest exporter of new energy vehicles but BYD's exports grew by 334.2% last year.
“BYD says its ongoing expansion in Luxembourg is meeting the country’s growing interest in electromobility and sustainable transport solutions”
What is giving BYD its competitive edge in the electric vehicle market?
BYD has developed formidable strength in research and development and has tapped into the wealth of talent by embracing European design, notably in Italy, Spain, Switzerland, and Germany. The company has focused on mastery of core technologies. It has developed the industry-leading Blade Battery which increases the surface area by more than 50% compared to conventional batteries. The company believes its e-Platform 3.0 and dual-mode hybrid power technology are accelerating the transition from fossil fuel powered to electric vehicles. The company’s objective is summed up by its effort to reduce global greenhouse gas under the slogan “Cool the Earth by 1℃.”
Is BYD making progress in penetrating the Luxembourg market?
So far, BYD has focused primarily on the Chinese domestic market. However, the company’s presence in Europe is now being steadily strengthened. Tesla is currently ahead in the race in Luxembourg. It gained a foothold in the Luxembourg automobile market several years ago. However, BYD has now established a presence in the Duchy with an exclusive partnership with regional car dealership, Car Avenue, which is revving up the establishment of car dealerships across the region. BYD says its ongoing expansion in Luxembourg is meeting the country’s growing interest in electromobility and sustainable transport solutions. BYD’s recently announced plans to build its first European car plant in Hungary is expected to allay some of the European Commission’s concerns that Chinese domestic subsidies distort competition in the new energy vehicle market.