China’s BYD was a battery maker trying to build cars when it showed off its newest model in 2007. Initially ridiculed for the uneven purple paint job and poor door fit, BYD is now a major player in the electric car market. The company surpassed Tesla in global sales of all-electric cars and is building assembly lines in various countries. It is also poised to overtake the Volkswagen Group as the market leader in China. BYD is rapidly expanding its exports to Europe and has launched the world‘s largest car carrier to transport electric vehicles.
However, BYD’s success has sparked concern, particularly from Tesla CEO Elon Musk who has warned about Chinese electric car exports. European Union has initiated an investigation into Chinese government subsidies and the possibility of imposing tariffs. BYD’s annual reports show a total of $2.6 billion in government assistance from 2008 to 2022. Despite these concerns, BYD continues to flourish, with rapid sales growth and the recent introduction of large shipping vessels to expand into the international market.
The company was founded in 1995 as a battery manufacturer for electronics companies, but expanded into the automotive industry in 2003. Warren E. Buffett bought a nearly 10 percent stake in 2008, giving BYD global prestige and a cash injection. BYD encountered a few challenges, but it overcame them by hiring an Audi designer to revamp its models and introducing a new, cost-effective battery. This innovation has positioned BYD as a significant competitor in the electric car market.
Despite BYD’s rapid success, it is facing scrutiny, including an investigation into Chinese government subsidies and the possibility of tariffs. There are also concerns about the consequences of the intense price war in China between BYD and Tesla. Nevertheless, with its technological innovations and leadership in the Chinese car market, BYD is well positioned to stay strong amid potential industry slowdowns.