BYD's Relentless Push: Dominating the Global Auto Market by 2030
By the year 2030, BYD plans to commercialize half of its automobiles in international markets.
Get ready for a revolution in the automotive industry! BYD, China's leading automaker, is setting its sights on selling half of its vehicles abroad by 2030, taking on the likes of Toyota and Volkswagen.
Four insiders familiar with the matter have revealed this bold move. According to them, the growth will be spearheaded by expansion in Europe and Latin America, while the US market remains out of reach due to trade barriers.
BYD's top brass has been presenting this audacious target to select investors since the end of last year, emphasizing the importance of conquering Europe. It's convinced that its products can replicate its Chinese success on foreign soil, says one of the insiders.
The journey won't be easy, even for a company with BYD's remarkable growth rates. Last year, the company sold almost 90% of the 4.27 million cars it manufactured in the domestic market. Achieving its foreign sales goal would catapult BYD from mid-tier player to top-tier global powerhouse.
BYD has already outmaneuvered Volkswagen as the leading automaker in China, the world's largest car market, last year. Its global sales have skyrocketed from less than 430,000 vehicles in 2020 to just under the numbers held by Ford and General Motors.
A 21st Century Henry Ford
BYD's meteoric rise in electric vehicles is reminiscent of Ford's pioneering role in mass production a century ago. BYD Chairman Wang Chuanfu himself claims to be "the Henry Ford of the 21st century."
BYD's ambitions are unsettling to other automakers' leadership. Ford CEO Jim Farley described BYD as the "biggest threat" in the "global race" to develop profitable electric vehicles at an investor conference in February. "We have to take on BYD and win," Farley said.
Foreign governments are also taking action to shield domestic automakers from Chinese imports. BYD and other Chinese automakers face tariffs on electric vehicles shipped to the European Union. To combat this, BYD plans to produce cars for the European market within Europe. Production of electric cars in Hungary is scheduled to commence by the end of this year, followed by a factory in Turkey, as announced by the Chinese company.
Key Strategies for Global Conquest
- Overseas Production and Assembly: BYD is establishing production facilities in various countries, such as Hungary, to circumvent tariffs and import duties, making its cars more competitive in foreign markets.
- Strengthening European Market Presence: BYD aims to become the leading electric car brand in Europe by 2030. To achieve this, it is expanding its dealership network, particularly in core markets like Germany, aiming to boost market penetration and engage customers effectively.
- Penetrating Other Global Markets: Besides Europe, BYD plans to make inroads into Latin America and other regions, furthering its chances of meeting its 2030 goal.
- Flourishing Overseas Sales: BYD has already seen record overseas sales, including a significant increase in new energy vehicle (NEV) sales, laying the groundwork for its 2030 target.
Hurdles and Opportunities
- Hurdles: BYD faces tough competition in Europe, where it currently maintains a meager share of the EV market. It must overcome its initial lackluster performance in Europe to meet its ambitious objectives.
- Opportunities: Expansion into Europe and other international markets offers immense growth potential, leveraging BYD's competitive pricing and rising demand for electric vehicles. The establishment of local production facilities also helps navigate geopolitical and trade matters.
- The employment policy of BYD is expected to play a significant role in the company's global conquest, as it seeks to expand its workforce to accommodate the increase in production for foreign markets.
- In line with its community policy, BYD plans to hire local talent in countries like Hungary and Turkey, aiming to foster strong connections and reduce cultural barriers among its global workforce.
- BYD's employment policy will also extend to the finance sector, as it secures more investors for its international expansion and seeks financially savvy professionals to manage its global business operations.
- As part of its business strategy, BYD aims to establish a strong presence in the automakers' industry, not just in China but also worldwide, making employment opportunities in the sector increasingly competitive.
