Last Updated 2 years ago
The EV market has been rapidly growing, and it is not surprising that American automakers are the most popular in the industry.
Automakers like Rivian, Lucid, and Tesla are in the spotlight being the latest and the most popular in part due to the polemic Tweets of its CEO Elon Musk.
Nonetheless, there is a new kid in the block that surprisingly outsold Tesla in the last quarter of 2023, and this automaker did not sell cars in the U.S.: BYD Company.
Here is why BYD has become a leader in the electric vehicle international market. But before, let’s talk about what company is this, who is behind its success, and how it could impact American consumers in the near future.
Who is BYD?
BYD stands for Build Your Dreams and was founded by Wang Chuangfu in 1995 as a company focused on manufacturing batteries for mobile devices. Although China was already producing Lithium batteries back then, BYD implemented an innovative manufacturing process that resulted in batteries up to six times cheaper than other Chinese companies, positioning BYD as a top battery produced in only seven years.
In 2003, Wang acquired Qinchuan Automobile and founded BYD Auto to bring his expertise in batteries into the automobile world aiming to create electric cars.
BYD’s first model was the F3 launched in 2005 with a combustion engine. In 2008, the F3 was introduced in its hybrid version, being the first mass-produced pugged-in hybrid.
Lastly, in March 2022, the Chinese automaker ended the production of combustion-only engine vehicles to focus on electric cars.
BYD Outsold Tesla In 2023
In the last quarter of 2023, the company reported sales of 526,400 electric vehicles. BYD sold almost 48k more electric cars than Tesla, which sold only 484,500 EVs in the same period, as reported by Electrek.
This is not unexpected, since BYD has done the right things since the very beginning for more than a decade. They started selling PHEVs (Plug-In Hybrid Electric Vehicles) and then slowly incorporated fully electric options satisfying early adopters of the EVs and also creating trust in those still in doubt of the technology.
This mix of products using different technologies combined with a portfolio of models at a wide range of prices allowed the company to penetrate different customer segments. This helped the company to be positioned as the top seller of electric vehicles in China which has almost four times the population of the U.S.
How Will This Can Affect American Drivers?
Although BDY is not commercialized in the U.S., the Chinese carmaker has plans to build a manufacturing plant in Mexico looking to open the door to the American market.
One way to predict how American customers could benefit if BYD enters this market is by looking at a similar market such as the United Kingdom.
Let’s take as an example the Tesla Model 3 and the BYD Seal. The Tesla Model 3 in its standard version has a cost of £39,999 and offers a 318-mile range with an acceleration from 0 to 60 mph in 5.8 seconds. While the Long Range version has a starting price of £49,990 and offers a 390-mile range along with an acceleration from 0 to 60 mph in 4.2 sec.
Meanwhile, the BYD Seal also offers two versions. The standard version has a 354-mile driving range and in just 5.9 seconds this vehicle can go from 0 to 62 mph. Its cost? It is available in the United Kingdom for £45,695.
The AWD version of the BYD Seal can accelerate from 0 to 62 mph in just 3.8 seconds. This powerful engine comes with the cost of reducing the driving range to only 323 miles. British people can get this model for £48,695.
Looking at the second-tier version of both models, there is not a substantial difference in prices and while the Tesla offers a higher mile range, the BYD Seal compensates for this disadvantage with a more powerful acceleration. This positions BYD as a strong competitor for Tesla.
BYD’s EV Model Cheaper Than A Gasoline-Powered Car
We can also look at the large catalog of products the Chinese manufacturer offers. More than 30 different models of cars are currently in the international market for different customer needs. The most affordable fully electric vehicle that BYD offers is the Seagull, a hatchback with 4 seats intended to be the rival of small 3-door cars.
In 2023, the Seagull was introduced to the market at a starting price of $10,659 which makes it one the most affordable electric vehicles.
With products like the BYD Seagull, Americans will have more options available when looking to get a budget-friendly electric car. But for now, we are all stuck with the Chevy Bolt EV as the cheapest EV in the United States starting at $26,500.