The Tesla name is certainly very global and very popular in the automotive world, especially in the electric vehicle category. However, now one of the companies from Asia, namely China, is starting to compete with Tesla. BYD, this name is starting to penetrate the automotive world and its popularity seems to be competing with Tesla. But what makes BYD so closely associated with Tesla in global competition. This time otomodify will explore in full about BYD, Tesla's new rival from Asia.
The largest electric car manufacturer in China
In fact, BYD has been a player in the automotive world for quite a long time. Although initially BYD only focused on battery production, in the 2000s BYD began to enter the car industry. Until now, BYD is listed as the largest electric car manufacturer in China. Not only that, BYD also achieved the achievement of the best-selling EV car. Its sales figures beat Tesla. According to official reports, BYD managed to sell more than 3 million electric vehicles in 2023. These vehicles include pure electric vehicles (BEV) and plug-in hybrids (PHEV). Meanwhile, Tesla sold around 1.8 million pure electric cars. From the available data, it can be seen that BYD is experiencing rapid development in the automotive world.
Strategy: All made by themselves
From such rapid sales and development, of course BYD has its own strategy. Namely vertically integrated manufacturing. This means that BYD produces almost all the main components of their own cars. Starting from batteries, electric motors, chips, to control systems are made by themselves. By implementing this strategy, BYD gets several benefits such as:
- Reducing production costs
- Accelerating innovation
- Reducing dependence on external vendors
This strategy is very similar to the strategy used by Tesla. What makes BYD superior is because they have more experience as a battery manufacturer from the start.
Innovation
In electric vehicles such as Tesla and BYD production cars, batteries are one of the main components. In this case, to become number one and surpass Tesla, BYD has issued its flagship move, namely, Blade battery. This Blade battery uses a different material, lithium iron phosphate (LPF). The advantage is that this battery is safer and more stable when compared to batteries with ordinary lithium iron material.
Reportedly, Tesla is now starting to follow in BYD's footsteps by using this technology.
Rapid global expansion
If previously Chinese cars were only marketed domestically, BYD boldly showed their faces to the world. BYD's production cars have been exported to almost 50 countries. These countries include parts of Europe, South America, Southeast Asia, and Australia. Not only exporting, BYD also went further by building factories abroad such as in Thailand and Brazil.
With its seriousness in expanding, several BYD cars with certain models such as BYD Dolphin, Atto 3, and Seal began to appear on the streets of major countries. BYD even competes directly with Tesla Model 3 and Model Y in Norway and England.
Affordable price
Like other Chinese cars or even products, BYD is able to provide a much more affordable price than its competitors. However, with a lower price, BYD still provides sophisticated features such as:
- Adaptive cruise control
- Automatic braking system
- Futuristic interior with large touch screen
- Panorama sunroof
When compared to Tesla which has the same features, BYD is able to provide a price 2x lower.
Massive research and development
Not wanting to lose to Tesla, BYD also invests in the research and development (R&D) sector. BYD has more than 90,000 employees in the R&D sector. This makes BYD the automotive company with the largest development team in the world. With this strength, BYD is not only a copycat of existing technology. BYD will also be the creator of new innovations in the world of electric vehicles.
Warren Buffet's Support
If Tesla has Elon Musk, BYD has the legendary investor Warren Buffet. No kidding, Warren Buffet has been an investor for BYD for quite a long time, namely since 2008.
With the presence of Warren Buffet through his company Berkshire Hathaway, BYD has a reputation in the eyes of global investors. The presence of Warren Buffet is also a major validation that BYD is not just an ordinary factory, but also has a strong foundation for the long term and has the potential to continue to grow.
Various models
Unlike its competitors, Tesla which has a futuristic and premium concept, BYD targets almost all market segments. Starting from city cars, family cars, luxury sedans, and electric sports cars.
This strategy allows BYD to reach more consumers from various backgrounds. This approach is certainly very suitable for developing countries such as countries in Southeast Asia.
Public and commercial vehicles
Not only focusing on private vehicles, BYD is also actively producing commercial electric vehicles such as electric buses, trucks, and electric taxis. Several countries in Europe and Asia use BYD's electric bus fleet for public transportation. This is an added value for BYD as a future automotive company.
Commitment to the environment
Amidst the massive production of electric vehicles, BYD remains committed to green energy by using environmentally friendly batteries.
Not only that, BYD has a long-term vision to build a clean energy ecosystem. With this vision, BYD is involved in renewable energy development projects such as solar panels and energy storage systems.
Why is BYD the "Tesla" of China?
From the many facts about BYD, it is no wonder that BYD is now called the Tesla of China. BYD's presence proves that the automotive world is no longer dominated by just one name. Amidst the major shift towards sustainable mobility, consumers now have more choices.