“The biggest car brand you’ve never heard of.” These are the words China’s top automakers use to promote themselves as they seek to expand around the world. BYD (short for Build Your Dreams) has become the best-selling car brand in mainland China, and has now surpassed Tesla as the world’s largest electric car maker. In the mini-documentaryHow BYD usurped Tesla’s throne” Bloomberg Originals, above, explores how a company that started as a battery maker transformed into the world champion of EVs.
Vertical integration is key to BYD’s success. BYD has succeeded in cracking the code of producing EVs cheaply by manufacturing most parts in-house rather than relying on other companies for parts. By offering a wide range of affordable EVs at low prices, the company can expand into new markets while maximizing sales (if not profits).
Having overtaken the United States, South Korea, and Germany, China now ranks first in the world in passenger car exports, rivaling Japan. And as of October, about 1.3 million of the 3.6 million cars shipped from the mainland were electric vehicles. In a field still dominated by major players like Toyota, Volkswagen, and General Motors, companies like BYD are starting to make serious inroads.
Indeed, BYD has received significant support from the Chinese government and Warren Buffett, whose main investor is Berkshire Hathaway. And that desire is not limited to demoting Elon Musk and Tesla to second place. BYD is building factories across Europe, Latin America and Asia as part of a broader effort to grow sales across these continents, and as the world increasingly de-economics, its auto and buses are starting to appear in cities around the world. From combustion vehicles to electric vehicles, Chinese automakers are poised to respond to all fields.