China leads global production of electric vehicles thanks to BYD, the Chinese giant that challenges billionaire Elon Musk's Tesla
In a world constantly evolving towards electric mobility, a Chinese competitor is emerging as a worthy rival to Tesla. BYD, whose acronym stands for “Build Your Dreams”, has made a giant leap in the quarterly production of electric vehicles and currently surpasses Tesla in this aspect, becoming the second largest electric vehicle manufacturer by sales worldwide.
This success is not only a testament to the growth of the automobile industry in China, but also a demonstration of how the Asian giant has become the largest car exporter in the world, surpassing Japan.
Watch the video below and learn about BYD's lithium iron phosphate battery factory in Brazil
The path to success BYD: from batteries to eletric cars. BYD had an advantage from the start, unlike other car manufacturers that expanded into making electric models, BYD started as a company dedicated to producing rechargeable batteries. The Shenzhen-based company, founded in 1995 by Wang Chuanfu and his cousin, excelled in manufacturing competitive batteries that challenged Japanese imports in terms of quality and price. Over time, the company diversified by acquiring Qinchuan Automobile Company, a struggling state-owned automobile manufacturer.
China as epicenter of electric vehicle revolution
In the early 2000s, the Chinese government recognized the importance of renewable energy production and offered significant incentives, such as subsidies and tax deductions, to boost the adoption of electric vehicles. This context was conducive to BYD, as the batteries it manufactured became the heart of electric vehicles.
Warren Buffett's investment in 10% of BYD Auto in 2008 proved prescient as China now leads the global electric vehicle production, largely thanks to BYD. The batteries, which are expensive and essential in the manufacture of electric vehicles, are manufactured in-house by BYD, giving them a significant competitive advantage over their competitors, including Tesla.
Global Competition: BYD's affordable electric vehicles beat automakers like Volkswagen and win over buyers in Europe
BYD has not only enjoyed phenomenal success in the chinese market, but it also won over younger buyers in Europe. Its affordable electric vehicles have outperformed traditional brands like Volkswagen, which represents a challenge for Auto Industry European. However, despite its success, the distrust towards China is prompting the European Commission to consider imposing tariffs to protect European Union manufacturers from Chinese competition. Growing global demand for affordable vehicles puts China in an advantageous position to lead the electric vehicle revolution.
This triumphant rise of BYD, from its beginnings as battery manufacturer to its dominant position in the production of electric vehicles, is a testament to the rapid transformation of the automobile industry and the China's impact on the global marketl. With an emphasis on producing affordable vehicles and the ability to manufacture expensive batteries in-house, BYD has overtaken big-name rivals such as Tesla and established itself as the undisputed leader in the electric vehicle revolution.
