How the Chinese are trying to take over the Battery car industry
BYD Company Limited (BYD): Global Expansion Strategy
Here’s a detailed look at BYD’s global push: its goals, strategies, opportunities and risks.
1. Key Facts and Ambitions
BYD sold over 4.27 million vehicles in 2024, up about 41% year-on-year.
It reported annual revenue of ~¥777 billion (≈ US$107 billion) in 2024.
BYD has set a target of 800,000 overseas (non-China) vehicle sales in 2025.
Its longer-term aspiration: sell ~50% of its vehicles outside China by 2030.
2. Geographies & Production Base Expansion
BYD’s global push is both about selling more overseas and localizing production.
Europe
BYD’s presence in Europe is growing rapidly: for example, its European market share rose to ~2.8% of the EV segment in 2024
To counter a 17% EU import tariff on Chinese EVs, BYD is building a factory in Hungary, and planning one in Turkey.
It launched a premium brand, Denza, in Europe to compete with premium German brands.
Latin America & Brazil
BYD opened its Brazil plant in Camacãri, Bahia State, with capacity ~150,000 vehicles annually, investment ~BRL 5.5 billion.
In Q1 2025 BYD’s sales in Brazil exceeded 20,000 units, giving it about 9.7% market share among brands.
China Daily
Southeast Asia / Other Emerging Markets
BYD emphasizes emerging markets (SE Asia, Latin America) as key growth areas where Chinese brands are viewed favourably.
It also aims to leverage lower production/logistics costs and fewer regulatory hurdles in some of these markets.
Other regions and technology/partnerships
BYD is working with Amazon Web Services (AWS) to scale its connected-vehicle platform globally: remote updates, multilingual voice commands, etc.
BYD has entered >110 countries and regions so far.
3. Strategy – Key Pillars
Local manufacturing & assembly: To avoid/export tariffs and logistic costs, BYD is shifting from export-only to “local production + local sales” in target markets.
Competitive cost structure: BYD benefits from vertical integration (batteries, motors, electronics) and applies that cost advantage in overseas markets.
Product segmentation: BYD is not just selling low-cost EVs; it is moving up-market (premium brands, advanced features) to improve margins.
Ecosystem & technology: Beyond cars, BYD invests in smart/connected features and global digital platforms (via AWS) to enhance its value proposition worldwide.
Flexible market approach: BYD targets markets with fewer entry barriers (e.g., UK, Australia, Latin America) while avoiding (for now) highly protected ones (e.g., the U.S.).
4. Opportunities
High growth potential in markets where EV adoption is still low but increasing (Latin America, SE Asia, Eastern Europe).
First‐mover advantage of a Chinese EV brand in many markets, especially with competitive pricing and features.
BYD’s integrated supply chain means potential cost leadership globally.
Premium escalation: Moving into higher margin segments can improve profitability as volume grows.
5. Risks & Challenges
Trade / regulatory hurdles: Many markets are becoming more protective of automotive trade. Example: Japan introduced subsidy changes that reduce incentives for BYD EVs.
Brand perception: In certain markets (especially premium segments), BYD faces recognition issues and residual concerns around product quality or provenance.
Tariffs/import duties: In Europe, high import tariffs for Chinese vehicles will pressure margins unless manufacturing is localised.
Domestic competition & slowing growth in China: As growth in the home base slows, overseas success becomes more critical—but global markets are unfamiliar and competitive.
Execution risk: Building factories, ramping up sales networks, complying with local regulations all pose substantial operational risks.
6. Where BYD Stands Today
Overseas sales are gaining momentum: in H1 2025, exports jumped 132% year-on-year to ~470,000 vehicles.
Europe: BYD overtook some competitors in specific sales weeks, showing strong growth.
Economy
Japan: Slower entry, experiencing higher marketing costs and subsidy headwinds.
7. Key Questions to Watch
Will BYD’s overseas factories ramp up on time (Hungary, Turkey, Brazil, Thailand, etc.)?
Can BYD build a strong premium brand image (e.g., via Denza) outside China?
How will regulatory/tariff actions (EU, U.S., Japan) evolve in response to Chinese car imports?
Will BYD maintain profitability as it shifts further abroad (with potentially higher logistic/marketing costs)?
How will incumbent automakers respond (both global and local)?