BYD Setting Sights on the Global Stage: Aiming for Half of Sales Outside China by 2030
By the year 2030, half of BYD's vehicle sales will be made externally.
Get ready for a major shakeup in the global auto market, as China's leading automaker, BYD, is planning to sell half of its vehicles abroad by 2030. This bold move, according to insiders, would catapult the company into the top tier of global automakers, posing a significant threat to industry giants like Toyota and Volkswagen.
Originally a mid-tier player in China, the world's largest car market, BYD has already surpassed Volkswagen as the leading automaker in the homeland. The company's global sales have witnessed a steady climb, reaching levels just behind Ford and General Motors. Bill Russo, CEO of Shanghai-based consultancy Automobility, has compared BYD's electric vehicle growth to Ford's pioneering role in mass production a century ago, while BYD chairman Wang Chuanfu himself has boldly declared himself the "Henry Ford of the 21st century."
Focus on Europe, Latin America, and Beyond
BYD's top management has set its sights on expanding in Europe and Latin America, as the US market remains unattainable due to trade barriers. Four people familiar with the matter have voiced this information, emphasizing that the growth would be driven by these regions. BYD aims to convince investors of its ability to replicate its Chinese success on foreign markets, and has been presenting this goal to investors in small groups since the end of last year.
Expanding Beyond the Old Continent: BYD is beefing up its production capabilities in Europe with the construction of a second factory in Manisa, Turkey. Scheduled to open in the mid-2020s, this plant aims to significantly boost European production capabilities. BYD's global expansion strategy also involves broadening its footprint in emerging markets like Southeast Asia, where multiple plants are in the works, and it is likely that South America is part of their vision, given their ambitious goal to rival established automakers.
Southeast Asia Expansion Highlights
BYD is heavily investing in Southeast Asia with multiple facilities:
- Vietnam: A $250 million plant in Phu Ha industrial park, with an annual production target of 150,000 vehicles and plans for a potential second plant.
- Thailand: A $500 million plant in Rayong’s Eastern Economic Corridor, aiming for 150,000 vehicles per year.
- Indonesia: A $1 billion investment in a plant in Subang, West Java, set to begin operations in 2026 with a 150,000 vehicle annual capacity targeting the large domestic market.
Strategic Vision and Government Support
BYD's global expansion is backed not only by investments in assembly plants but also in supply chains and logistics. The Chinese government is actively supporting this growth strategy through efforts to develop regional infrastructure and economic cooperation.
Lastly, it's important to note that foreign governments have taken measures to protect their domestic industries from Chinese imports. BYD and other Chinese automakers face tariffs on electric vehicles imported into the European Union. To avoid these and gain a foothold in the EU market, BYD plans to produce cars specifically for the region in Europe, with production in Hungary set to start later this year, followed by a factory in Turkey.
Source: ntv.de, als/rts
- BYD
- Electric Mobility
- Electric Vehicles
- China
- Europe
- Latin America
- South America
- USA
- Vietnam
- Thailand
- Indonesia
[1] BYD has an ambition to have half of its total vehicle sales come from international markets by 2030, marking a significant push to expand its global presence. NTV.de, 2023.[2] BYD is actively increasing production capacity in Europe by constructing a second factory in Turkey. NTV.de, 2023.[3] BYD is heavily investing in Southeast Asia with multiple plants in countries like Vietnam, Indonesia, and Thailand. NTV.de, 2023.[4] BYD’s global expansion is supported by investments not only in assembly plants but also in supply chains and logistics. This comprehensive approach is coupled with Chinese government efforts to develop regional infrastructure and economic cooperation to support BYD’s international growth strategy. NTV.de, 2023.
- The global auto market is poised for a major disruption with BYD, China's leading automaker, aiming to sell half of its vehicles outside China by 2030, a move that could challenge industry titans like Toyota and Volkswagen.
- In addition to the US market, which remains inaccessible due to trade barriers, BYD's expansion plans include Europe and Latin America, with the objective of demonstrating to investors that it can replicate its Chinese success on foreign markets.
- To strengthen its European presence, BYD is building a second factory in Manisa, Turkey, set to open in the mid-2020s, significantly boosting its European production capabilities.
- The company also has aggressive plans for Southeast Asia, investing in multiple plants in countries such as Vietnam, Thailand, and Indonesia, with each aiming for an annual production capacity of 150,000 vehicles.
- BYD's expansion strategy is backed not only by investments in assembly plants but also in supply chains and logistics, with the Chinese government providing active support through efforts to develop regional infrastructure and economic cooperation.
