BYD reportedly has no plans to challenge Tesla in the U.S market
Chinese automaker, BYD, reported an 11-fold increase in profits in the fourth quarter of 2022 but has no interest interested in taking on the Tesla (even though the brand already beat Tesla internationally) or even entering the latter brand’s home ground, the U.S.A. So why doesn’t BYD want to enter the U.S market?
So for those not in the know, BYD is one of the largest, in fact, the second largest electric vehicle (EV) manufacturer in the world and has a massive disposal of funds, parts, etc and also has a comprehensive lineup of vehicles but despite all this, the brand will not be entering the most competitive market anytime soon.
The founder of BYD, Wang Chuanfu, stated that the company is currently in a “full expansion phase” for new energy vehicles, including electric, hydrogen, and plug-in hybrids despite the fact that the brand has quintupled its net income in 2022. This was reported by Bloomberg.
Moreover, while BYD was one of many automakers who were facing losses in EV sales, the brand still managed to sell an astonishing number of EVs and report an 11-fold increase in profit in the last quarter of 2022. Even more interesting is this took place amidst a price war as companies sought to take over the market share in China.
This decision is quite interesting as Reuters reports that BYD, one of the few successful EV makers controls about 41 percent of new energy vehicle sales in the market while Tesla which only sells EVs and does not have any plug-in hybrid offerings like BYD only makes up 8 percent of the market.
BYD’s sales also went up by more than 200 percent in 2022 but the brand does not expect to be able to continue at the same pace. This comes as China ends its EV subsidy program and the automaker is reducing shifts at two of its major factories. Still, in the first quarter of 2023, it expects sales to increase by 80 percent.
On top of that, BYD has already begun expanding into Europe, targeting countries such as the U.K, Denmark, and Norway, which itself, is a very EV focused market. The brand has also recently set up shop in Malaysia so this shows that the brand is not only focused on the domestic Chinese market despite not entering the U.S.
So BYD is definitely not going to be in any financial trouble anytime soon but the brand is being cautious, which, I personally think is the right course of action and I am certain that as soon as the brand is certain things are stable, it should be ready to enter the U.S market in full force and I can’t wait to see what happens then.
We got all this from Carscoops and their full article is linked here. Thank you Carscoops for the information.
