Its sales are growing rapidly and it is starting to gain ground in a country where electric vehicles are weakest.

• The company achieved record sales this year.

• In Japan, its market share already stands at 3%, and Western manufacturers are starting to retreat.

The first quarter of 2023 was a confirmation surprise. BYD has managed to take over the sales lead in China from Volkswagen. Not just electric cars or “new energy” – a term that also includes plug-in hybrids in the country.

And 2024 will be another year of rapid sales growth. So far this year they are collecting in Hybrids and electricsBYD has placed it on the market 1.6 million cars. That figure appears to be growing, as one million units were sold in the second quarter alone. Of those, 426,000 were fully electric.

This increase in sales is a result of the growth in popularity of the company’s other brands. Denza, Yangwang and Fang Cheng Bao also contributed to BYD, which obviously takes the bulk of sales, positioning itself in these figures. In addition, it opens a gap with Volkswagen, whose sales in the first half of 2024 amounted to 1.27 million vehicles, and Chery (1.06 million units).

Opening unexpected markets

Thanks to its stunning growth, BYD is on track to surpass the 3 million vehicles it sold last year. But what stands out above all, in retrospect, is its breakneck pace of sales. Before 2020, BYD was producing less than half a million vehicles a year.

To maintain this momentum and continue growing, the company decided to attack New markets outside of China. Although the company has been present in Europe for many years, especially with its electric buses, its intention is to carve out a real niche among passenger car manufacturers.

Along the way, they have run into trade barriers that Europe, whose institutions ensure that Chinese brands do not compete on a level playing field, wants to raise. But these so-called tariffs will only apply to electric vehicles, leaving the door open for BYD with a truly attractively priced plug-in hybrid.

But beyond Spain, where BYD is making its name, it is in an unexpected place: JapanAccording to him, the Chinese company released its first electric car there last year, but by 2024 they have already taken 3% of the market share of this type of vehicle. Electrek

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Data taken from Japan Automobile Importers Association (JAIA, English abbreviation). This association analyzes the market for imported vehicles and notes that electric vehicles are gaining ground: growth was 17% in the first half of the year and accounts for 10% of them.

It’s an interesting fact in a country that continues to invest heavily in hybrid cars and where penetration by Chinese brands has been hampered by the historical rivalry between the two countries. However, BYD is struggling to gain ground in a country where electric vehicles can only grow. According to CarNewsChinaBYD is considering releasing a new car every year. At the moment, it is fighting with the Atto 3, Dolphin and Seal.

BYD also has close relationship with ToyotaIn fact, the cars the Japanese sell in China are in some cases refurbished BYD vehicles. The cooperation agreement even spoke of launching up to 30 joint models by the end of the decade.

The agreement could be another letter from BYD easing its entry into the Japanese market. For now, the country continues to bet on the electric car, but if the customer changes course, the Chinese company is already in position and has achieved results in a year that, although restrained, continue to surprise because of the unexpected.

Photo | BID

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