Chinese carmakers will upend the global auto industry, says BYD founder Wang Chuanfu as compan

BYD founder and chairman Wang Chuanfu has pledged that his company will not only grow market share outside mainland China but also crack into the top tier of carmakers worldwide, commanding the same recognition and esteem as global household names.

“China has yet to create a single international marquee of its own that is universally recognised and respected,” Wang said at a ceremony to witness BYD’s 5 millionth electric vehicle (EV) rolling off the production line in Shenzhen. “It is time for Chinese carmakers to upend the order of the global automotive industry and chart a course into a new vast territory.”The billionaire’s remarks on Wednesday evening reflect BYD’s ambition to sell more electric cars abroad to show China’s growing prowess in the EV sector, even though the Shenzhen-based company, which is about 10 per cent owned by Warren Buffett’s Berkshire Hathaway, is already the world’s largest EV builder.BYD overtook Tesla to become the world’s top EV maker in terms of sales last year. However, most of its sales come from mainland China, the world’s largest electric-car market. Total EV sales in China represented about 60 per cent of the global total in 2022.Wang said BYD and its Chinese peers aim to build themselves into powerhouses like General Motors, Volkswagen and BMW, whose products are well received by drivers around the world.

“Wang has sent a loud message to global marquees and customers that BYD is coming up as a new powerful EV company, which is able to compete against any established international auto brand in any international market,” said David Zhang, a visiting professor at Huanghe Science and Technology College.

Now, Wang and his peers have to follow through on the global stage. “It is of vital importance for BYD and other Chinese carmakers to generate a big number of sales outside China if they are determined in their resolve to become global players,” Zhang said.

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Founded by Wang in 1995 as a battery producer, BYD has been making vehicles since 2003 after it bought the licence of Xi’an Tsinchuan Auto from the Shaanxi provincial government and the defence contractor China Ordnance Industries Group.

By keeping prices well below the 100,000 yuan (US$13,874) psychological barrier, BYD became a go-to brand for budding motorists, giving it an edge over larger rivals like Volkswagen, Toyota and Honda. Even today in the fast-developing EV market, BYD is known for models that are priced below 200,000 yuan – about 30 per cent cheaper than premium models from Tesla and Chinese competitors such as Nio and Xpeng – although the company is introducing more premium models.

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When he recalled the carmaker’s 20-year history of developing EVs, Wang appeared on the verge of tears, insisting that his resolution to spend heavily on research and development held the key to BYD’s success.

“We are now powerful enough to lead the transition of the global auto industry,” he said. “China can add vigour to the industry’s electrification drive.”

In 2011, Tesla chief executive Elon Musk burst out laughing during an interview on Bloomberg Television when BYD was named as a potential competitor.

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BYD began aggressively tapping markets outside China last year with plans to either sell its Chinese-made cars or set up local assemblies to produce cars for international markets.

Last month, it announced a plan to invest US$620 million in an industrial complex in Brazil’s northeastern Bahia state. It is also building a plant in Thailand, which will have an annual capacity of 150,000 cars when completed next year.

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The company is also constructing an assembly plant in Uzbekistan.

BYD’s blade lithium iron phosphate battery packs have been well received by Chinese drivers and car assemblers. The battery cells are arranged in a manner that increases energy density while enhancing resistance to overheating. The blade batteries have also been supplied to Tesla’s factory in Berlin.

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