In terms of popularity, we all know that Tesla is gradually becoming a household name. However, take a look at the Asian EV market, you shall find BYD, a promising company producing vehicles that beat Tesla in features and affordability.
According to its 2023 fourth-quarter sales statistics, the Warren Buffett-backed BYD surpassed Tesla to become the top EV maker in the world. However, the journey did not start with cars.
Wang Chuanfu founded BYD, intending to produce batteries for mobile phones during the 90s. Later in 2003, the company changed its direction to the automobile industry, building sustainable batteries for EVs, while developing its car designs and features. Currently, the company has risen to become the leading carmaker and EV battery producer in China.
“BYD has grown into this powerhouse in the new energy vehicle industry. When you look at the monthly ranking, they are always leading.” Said Evelyn Cheng, CNBC’s Beijing correspondent.
BYD is one of the leading companies in the world manufacturing lithium-ion phosphate batteries, a new alternative to lithium-ion batteries. The difference and advantage between both types of battery is that Lithium-ion phosphate batteries cost between 30%-40% less per kilowatt-hour to produce and ultimately last longer than lithium-ion batteries.
What gave the car company the mass appeal was its price tags. Many EV companies in the world sell their base model for $30,000 – $40,000. BYD, on the other hand, offer cheap cars with high-end features. Most of its models sell below $20,000. An example is the BYD Seagull, priced at $11,500.
The Chinese leading car company is now building momentum, exporting over 250,000 cars globally in the previous year. BYD has announced plans for a European factory in Hungary while reported to be seeking a site in Mexico.