This supposed BYD supply deal was reported by the Financial Times
Chinese electric automaker BYD is on a roll right now. The brand has been in the driver’s seat (no pun intended) of its global expansion and success for quite some time now, seizing opportunity after opportunity to truly establish itself as a global leader in the electric vehicle (EV) sphere. Check out its latest move to do just that.
So, it has been reported that BYD has recently held talks with Brazil’s Sigma Lithium over a possible supply agreement, joint venture or acquisition, the Financial Times reported on Sunday. What exactly does this mean? More resources, which in turn means more cars, which means more sales, which means more profits.
Moreover, BYD met Sigma Chief Executive Ana Cabral Gardner in Sao Paulo last month, BYD’s Brazilian chair, Alexandre Baldy, told the newspaper, but did not give details, citing a confidentiality agreement. Clearly, this means that both brands are still in early stages of the talks and no concrete details have been ironed out.
BYD and Sigma did not immediately respond to Reuters requests for comment and Sigma also said in January it had initiated a primary listing of Sigma Brazil on Nasdaq and the Singapore stock exchange. We will likely see a huge shift in these numbers after both brands come to an agreement, though.
BYD, backed by Warren Buffet’s Berkshire Hathaway, said in July it would invest 3 billion reais (the equivalent of USD600 million or about RM2,811,900,000) in a new industrial complex in northeastern Brazil, with operations expected to start somewhere in the middle of 2024.
On top of that, BYD is already one of the most successful EV manufacturers of all time, even outselling Tesla recently. This deal will likely see its sales skyrocket which means the brand may even dominate EV sales globally, if the deal is favourable. It looks grim for every other EV manufacturer right now.
Still, BYD, as a brand, makes good products at affordable prices so I would rather see a brand like at the top of the sales charts than brands like Tesla which makes overpriced low quality cars that break too easily and are inferior in every way then market it as “premium.” Sometimes hubris needs to be knocked down.
What do you guys think? Will BYD be able to achieve the best sales globally this year assuming the deal goes through or does it need more time to get there? We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
