BYD takes on Tesla
The sales figures show: Two car manufacturers are outpacing the competition when it comes to electromobility, including German car manufacturers. At the same time, however, Tesla's leading position is shaky - thanks to an upstart from China.
For over a decade, the US electric car manufacturer Tesla, co-founded by Elon Musk in 2003, was the benchmark in electromobility. Whether it was battery construction, battery management, range, connectivity or autonomous driving - Tesla showed the rest of the automotive world the tail lights. All Western car manufacturers were accused of sleepiness, sluggishness and technical ignorance. They all mutated - above all the German premium manufacturers and VW - into self-proclaimed "Tesla hunters" and invested huge sums in electromobility. And they caught up.
However, they did not reach the hunted. Tesla remains unrivaled as an electric car original to this day. Even the comparatively high prices, Musk's many escapades and the spectacular accidents involving numerous Tesla vehicles did nothing to change this.
On the contrary: Tesla continued to boom in the coronavirus era. The company expanded despite a meagre car range of initially just two, now four models. Double-digit growth rates every year. The number of so-called gigafactories grew. With the plant currently being planned in Mexico, there are now six. There are to be 20. And they will have to be if Musk's target of 20 million Tesla sales in 2030 is to be achieved. An ambitious target. For comparison: Tesla has sold around 1.3 million vehicles so far this year (up to the end of September). The Chinese market leader BYD has sold around one million, the VW Group just under 530,000, SAIC from China around half a million and Hyundai around 370,000 units. They are followed by Geely and Stellantis with just under 350,000 and 280,000 e-vehicles respectively.
China pushes to the top with power
However, the ranking makes it clear that it is not the established automotive groups from Germany, Japan or the giants from the USA that are Tesla's strongest pursuers. Rather, it is BYD Auto, a car manufacturer from China that is still little known in Germany. Founded in 2008, BYD is challenging Tesla for the global place in the sun when it comes to battery-powered electric vehicles (BEV).
In Germany, BYD first became known when the company was mentioned as a possible buyer of the Ford plant in Saarlouis. However, negotiations are still ongoing. According to reports, Hungary has better cards as a location for the first European BYD plant.
Led by China as the lead market, BYD has been the big winner in the rapid growth of the BEV market in recent years. By the end of 2023, the Chinese industry leader will also be number one worldwide. The industry pioneer from the USA is thus suffering the same fate as the US car giants GM and Ford 40 years ago, who had to cede global pole position to Toyota and Co.
Chinese success story
BYD had a dual start, initially building both combustion and electric cars. Since April 2022, the focus has been solely on plug-in hybrids and all-electric vehicles. Including plug-in hybrids, BYD was already the world's largest manufacturer of electric cars in 2022.
BYD has quietly and secretly become the leader in electric cars. But how was this even possible? A look back: BYD initially built microcars, then copied various Toyota models. The latter soon caused a stir due to their better quality than the originals. This was followed by a wide range of its own models. The breakthrough on the global market came in 2019 with the establishment of its own "Global Design Center", where European designers took the reins.
Innovative, more innovative, BYD
In the field of electromobility, BYD is considered one of the most innovative companies - not least due to the market launch of the world's first electric tractor unit, the first electric articulated bus and the first electric double-decker bus. As an automotive company, BYD already owned more than 2000 patents for its own developments in 2007. At the same time, BYD Auto was constantly expanding its research and development centers, where around 10,000 scientists now work at four locations
To date, BYD has - in complete contrast to the industry - had an extremely high level of vertical integration. The car manufacturer produces most components such as engines, transmissions, control and braking systems, vehicle electronics and windshield wipers itself. Only tires, automotive glass and a few general components are procured externally. Established suppliers therefore have little or nothing to do with BYD. The prerequisite for this is high sales figures.
Only a question of time
The battle of the electric Goliaths is in full swing. Tesla is still the largest battery electric car manufacturer in the world, but BYD is closing in on the US brand. Including its hybrid models, BYD has already overtaken Tesla, as the US car manufacturer does not even produce such vehicles and is purely electric. BYD is also continuing to expand. In this country alone, the Chinese manufacturer plans to sell a total of 120,000 electric cars by 2026.
Alongside research and development, costs are one of the secrets of BYD's success. CEO Wang Chuan-fu is regarded as a merciless cost-cutter and is known throughout China for his thriftiness. Wang is now a billionaire many times over, who still flies on budget airplanes and rolls his own suitcase. However, Tesla boss Musk is also a cost-cutter.
Helmut Becker, a prominent German automotive analyst, noted that BYD's aggressive pricing strategy, led by CEO Wang Chuan-fu, has been a critical factor in its rise to challenge Tesla in the global market for battery-electric vehicles. Elon Musk, the co-founder of Tesla Motors, has also emphasized the importance of cost-effectiveness in sustaining Tesla's growth in the competitive electromobility market.
BYD's success in electromobility has attracted attention from Tesla's rivals, including German car manufacturers and other Western firms. Helmut Becker, in his analysis, highlighted that Tesla's dominance in electromobility may be under threat as emerging competitors like BYD push the boundaries of innovation and cost-effectiveness.
Source: www.ntv.de
