Gruppo BYD

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BYD set to dethrone Tesla as top global EV seller

 

China’s BYD Co. bills itself as the biggest car brand you’ve never heard of. It might need a different tagline soon.

The automaker is poised to surpass Tesla Inc. as the new worldwide leader in fully electric vehicle sales. When it does — likely in the fourth quarter — it will be both a symbolic turning point for the EV market and further confirmation of China’s growing clout in the global automotive industry.

In an industry still dominated by more familiar names such as Toyota Motor Corp., Volkswagen and General Motors Co., Chinese manufacturers including BYD and SAIC Motor Corp. are making serious inroads. After leapfrogging the U.S., South Korea and Germany over the past few years, China now rivals Japan for the global lead in passenger car exports. Some 1.3 million of the 3.6 million vehicles shipped from the mainland as of October this year were electric.

“The competitive landscape of the auto industry has changed,” said Bridget McCarthy, head of China operations for Shenzhen-based hedge fund Snow Bull Capital, which has invested in both BYD and Tesla. “It’s no longer about the size and legacy of auto companies; it’s about the speed at which they can innovate and iterate. BYD began preparing long ago to be able to do this faster than anyone thought possible, and now the rest of the industry has to race to catch up.”

Crown passed
The passing of the EV sales crown also reflects the shift in competitive dynamics between Tesla’s Elon Musk, the world’s richest executive, and BYD’s billionaire founder, Wang Chuanfu.

Whereas Musk has been warning that not enough consumers can afford Tesla EVs with such high interest rates, Wang is firmly on the offensive. BYD offers half a dozen higher-volume models that cost much less than what Tesla charges for its cheapest Model 3 sedan in China.

When a Tesla owners’ club shared a clip in May of Musk snickering at BYD’s cars during a 2011 appearance on Bloomberg Television, Musk wrote back that BYD’s vehicles are “highly competitive these days.”

The likely change in the global EV pecking order marks the realization of a goal that Wang, 57, set back when China was just starting to foster its now world-beating electric vehicle industry. While BYD continues to pull away from Tesla and all other auto brands at home, replicating its runaway success abroad is proving tricky.

U.S. off limits
Europe looks poised to join the U.S. in slapping Chinese car imports with higher tariffs to shield thousands of manufacturing jobs. Other countries’ EV markets are still in their infancy and aren’t nearly as lucrative. BYD management views the U.S. as virtually off-limits due to the escalating trade tensions between Washington and Beijing.

Wang is no Musk — he eschews social media and largely steers clear of the limelight. But in an uncharacteristically brash address delivered weeks before the European Union opened an investigation into how China has subsidized its EV industry, Wang declared the time had come for Chinese brands to “demolish the old legends” of the auto world.

While many car buyers outside of China are still only dimly aware of BYD, Warren Buffett surely isn’t. In 2008, Berkshire Hathaway Inc. invested about $230 million for an almost 10 percent stake in the Chinese automaker. When Berkshire started paring its holding last year — BYD shares were trading near their all-time high — the value of its stake had soared roughly 35-fold to around $8 billion.

The late Berkshire Vice Chairman Charlie Munger saw BYD primarily as a battery play. On Bloomberg TV in May 2009, he said the company was working on “one of the most important subjects affecting the technological future of man.” Munger’s family had invested in the company years ahead of Berkshire, and he told an interviewer weeks before his death in November that he had tried to dissuade Wang from getting into the car business.

BYD acquired a failing state-owned automaker in 2003 and introduced its first plug-in hybrid — called the F3DM — in 2008. A New York Times reviewer panned its exterior design, calling the compact “about as trendy as a Y2K-era Toyota Corolla.” The company sold all of 48 units in the first year.

Around that time, China started subsidizing plug-in car purchases. Support from the government extended from cities and provinces to the national level, spanning tax breaks for consumers, production incentives for manufacturers, help with research and development, and cheap land and loans.

As a rare automaker that also made its own batteries, BYD was uniquely positioned to benefit. Before entering the car business, it was the first Chinese lithium ion supplier to Motorola and Nokia in the early 2000s. To scale up output before consumers were embracing EVs, the company targeted automotive segments that would need lots of cells. Its first electric bus launched soon after the F3DM.

“BYD was a miracle,” Munger told the podcast Acquired in an episode that aired in October. He called Wang a genius, saying he kept the company from going broke by working 70-hour weeks, and described him as a fanatical engineer. “The guy at BYD is better at actually making things than Elon is,” he said.

Roughly a decade and a half into making cars, BYD had mustered the smarts to bring plug-in car prices down to levels comparable with combustion engine vehicles. But its lineup still lacked good looks.

In 2016, the company hired Wolfgang Egger as design chief, a role he previously played for Audi and Alfa Romeo. It also lured away other international executives, including Ferrari’s head of exterior design and a top interior designer for Mercedes-Benz.

By the time China invited Tesla to build the country’s first car plant fully owned by a foreign entity, BYD was no longer resigned to making no-frills econoboxes. Now, its most expensive model — the Yangwang U8 crossover — costs 1.09 million yuan ($152,600).

While the level of government subsidies has played a role in China’s tremendous EV growth, Paul Gong, UBS Group AG’s head of China autos research, believes the bigger factor is the level of competition that the support spawned.

“They have to work on the innovation, they have to try and find what consumers really want, and they have to optimize their costs to make sure their EVs are competitive in this highly competitive market,” Gong said. After tearing down a BYD Seal sedan and finding a 25 percent cost advantage over legacy competitors, his team concluded that Chinese manufacturers are likely to own a third of the global car market by the end of the decade.

For now, Tesla still has BYD beat on key metrics including revenue, income and market capitalization. Analysts at Bernstein expect some of those gaps to close considerably in 2024 — they’re projecting Tesla will generate $114 billion in sales to BYD’s $112 billion.

Anhui province roots
Wang grew up the second youngest of eight children in the impoverished village of Wuwei in eastern China’s Anhui province. His parents died when he was a teenager, and his older siblings supported him through his high school and university education.

Through the early years of his working life, Wang was based in Beijing, working as a mid-level government researcher on rare-earth metals critical to batteries and consumer electronics. He founded BYD in 1995 in Shenzhen with the help of an almost $300,000 loan from a friend. He’s now worth $14.8 billion, according to the Bloomberg Billionaires Index.

Wang has racked up the air miles in 2023, crisscrossing the globe between auto shows, new market launches and meetings with heads of states. He’s touched down in countries including Japan, Germany, Vietnam, Brazil, Mexico and Chile — a travel schedule befitting the leader of a company that’s set up shop in some 60 countries and territories in just the last two years.

Analysts expect BYD to launch its third-generation EVs next year offering more technology, such as automated-driving capabilities. That’s one area where BYD falls short with its more affordable products versus upstarts like Nio Inc. and Xpeng Inc. Even as the number of auto rivals in China has shrunk from over 500 to around 100, new entrants continue to emerge, including well-funded tech giant Huawei Technologies Co.

When Bloomberg News asked Wang in March whether BYD had aspirations to be as big as Toyota, which in 2023 will be the world’s top-selling overall carmaker for a fourth straight year, he said the development of the EV industry will lead to an industry reshuffle.

“How a car company performs will depend on its tech and response,” he said. “BYD in China’s electrification is the winner for now, but how it will go tomorrow, we can’t say for sure. But we will lean into our advantages and keep making good products.”

But staying at the top will require a different mindset than getting there, said HSBC Qianhai Securities head of China autos Yuqian Ding.

“When you become the No. 1, the mandate suddenly changes,” she said. “You’re going to redefine yourself — you’re going to have to find a way to beat yourself.”

 

(ANE)

 

 

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BYD sold 3.02 million vehicles in 2023, up 61.9%

 

 

 

 

 

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BYD’s first transport ship EXPLORER NO.1 has been delivered and left the port

 

On January 9, BYD‘s inaugural car roll-off carrier, BYD EXPLORER NO.1, was delivered and set sail from Yantai, Shandong, marking the first addition to BYD’s “sea fleet.” The 7,000-space car carrier, constructed by CIMC Raffles, a subsidiary of CIMC Group, was commissioned to the international shipping company Zodiac Maritime and is exclusively leased to BYD.

With a total length of 199.9 meters, a width of 38 meters, a design draft of 8.6 meters, a design speed of 19 knots, and a loading capacity of 7,000 vehicles, BYD EXPLORER NO.1 is gearing up for its journey to Shenzhen Xiaomo Port, where it will load trucks before embarking on its voyage to Europe.

Notably, BYD EXPLORER NO.1 is the first car transport ship manufactured by a Chinese shipyard explicitly intended to export Chinese automobiles.

Regarding propulsion, the ship is equipped with two sets of C-type LNG storage tanks. Utilizing liquefied natural gas (LNG) as the primary fuel for its main engine and generators, the vessel boasts environmentally friendly features, significantly reducing nitrogen and sulfur oxides emissions. With a maximum cruising range of 15,800 nautical miles, BYD EXPLORER NO.1 combines efficiency with sustainability.

BYD’s transport ship plan

BYD’s foray into the maritime sector became public knowledge in December of the previous year, breaking its silence on shipbuilding and acquisitions. The company confirmed its ship acquisition plans, revealing the chartering of two roll-on/roll-off (ro-ro) carriers from Yantai, Shandong, with expected delivery in 2024.

Reports from October of the same year had hinted at BYD’s intentions, citing sources that an affiliate of BYD aimed to order eight ro-ro ships, capable of carrying 7,700 vehicles each, at a shipyard in Yantai. This ambitious venture’s estimated total cost was nearly 5 billion yuan (approximately 700 million USD). Six ships were purportedly confirmed for construction, with the remaining two designated as optional orders. At that time, BYD chose not to respond directly to these reports.

The introduction of BYD EXPLORER NO.1 signals a significant milestone for BYD as it enters the maritime transport domain, contributing to the export of BYD EVs to international markets.

 

(CNC)

 

 

 

[KimKardashian]

 Svelate due nuove PHEV:

 

La Seal 06

E la Quil L

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BYD licenses production of LFP Blade batteries to GM, Ford supplier

 

 

BorgWarner Inc. has announced a strategic agreement with FinDreams Battery, a subsidiary of BYD Company Limited, to manufacture lithium iron phosphate (LFP) battery packs for commercial vehicles.

As part of the deal, BYD will supply blade cells to BorgWarner, which will use them to manufacture batteries in Europe and the Americas. The duration of the agreement is eight years.

BorgWarner will also get intellectual property rights to use FinDreams’s battery pack design and manufacturing process as part of the agreement.

BorgWarner is a US-based tier 1 automotive supplier listed on the New York Stock Exchange, and among its customers are GM, Ford, and Stellantis. The company is also very active in China recently. It operates 11 manufacturing facilities, and last week, it announced the start of the production of electric motors for Xpeng X9 MPV. They also revealed the same e-motor will be used in Xpeng’s new mysterious B-class sedan, which will begin production in Q3 2024.

Moreover, on February 8, BorgWarner clinched a deal with a leading Chinese OEM to provide its dual inverter with a boost function for the automaker’s plug-in hybrid (PHEV) and electric range-extended vehicle (EREV) platforms. Although BorgWarner didn’t mention who the Chinese OEM is, according to CarNewsChina information, it is Great Wall Motor (GWM). The GWM prepares to launch Poer Hi4-T powered EREV pick-up soon in addition to the BEV and PHEV variants.

BorgWarner is also a supplier of electric drive modules (eDM) to Aiways and Ford’s Chinese joint venture with JMC.

The agreement with BYD, spanning eight years, establishes BorgWarner as “the only non-OEM manufacturer,” unaffiliated with FinDreams Battery, with the rights to localize LFP battery packs in Europe, the Americas, and select regions of Asia Pacific for commercial vehicles in class 3 and above, according to a press release.

Non-OEM means that Borwarg is the only automotive supplier with those licensing rights. However, there could be an auto manufacturer with the same license, hinting that more BYD deals might be announced soon.

Frédéric Lissalde, President and CEO of BorgWarner, expressed enthusiasm for the partnership, highlighting the growing global demand for LFP battery packs due to their cost competitiveness. He praised FinDreams Battery’s 20-plus years of experience and success in LFP batteries for mobility sectors in China and Europe, emphasizing the synergies between the two companies in advancing cell and battery pack technology for commercial vehicles.

Micheal He, President and CEO of FinDreams Battery, emphasized the strategic importance of collaboration amidst complex geopolitical dynamics and the increasing adoption of LFP electrification for overseas commercial vehicles. He highlighted the partnership’s ability to provide diverse and flexible options for overseas customers, contributing to the rapid electrification of the commercial vehicle market.

 

(CNC)

 

 

[j]

BYD, contatti con l’Italia per produzione auto

L'amministratore delegato di BYD Europe annuncia: "La necessità di un secondo stabilimento europeo dipende dalle nostre vendite"

 

https://www.formulapassion.it/automoto/mondoauto/byd-contatti-governo-italiano-nuova-fabbrica-produzione

[j]

BYD produrrà auto in Italia? Arriva la smentita

La Casa conferma i contatti col Governo, ma specifica che “la decisione finale è caduta sull’Ungheria”

“I contatti con il Governo italiano ci sono stati, ma risalgono al periodo in cui BYD, presa la decisione di aprire uno stabilimento in Europa, aveva preso in considerazione diversi Paesi, tra cui l’Italia, ma la decisione finale è caduta sull’Ungheria”.

 

https://it.motor1.com/news/710248/byd-fabbrica-auto-italia/

[Maxwell61]

Certo, grazie ai soldi che la comunità europea dà a questo dittattore senza scrupoli, ha promesso a tutti, cinesi in testa, detassazioni, agevolazioni e presumibilmente la copertura di sfruttamento dei lavoratori, come per ogni dittatore che si rispetti. Non c'era concorrenza. Quando sbatteranno fuori dalla UE l'Ungheria (finchè c'è questo criminale dei diritti umani e della poltica UE) sarà sempre troppo tardi.

[j]

BYD

Stella Li: "Una fabbrica in Italia? Perché no"

Nei piani di Shenzhen c’è almeno un altro stabilimento in Europa oltre a quello ungherese: noi possiamo essere un'occasione, anche se la vicepresidente del gruppo conferma di non aver ancora avuto colloqui col governo

[...]

C’è una possibilità. "Il nostro ufficio europeo ha aperto nel 1999 e io sono stata tra le prime persone che ne ha fatto parte, trascorrendo molto tempo a Bologna", ha risposto Li. "Quindi conosco il mercato italiano. Conosco molto bene l'Italia. Se nei prossimi anni i nostri volumi aumenteranno, forse avremo bisogno di una seconda o di una terza fabbrica. Penso che ci sia una possibilità (per l’Italia, ndr)". Detto questo, BYD non è uno dei costruttori che hanno avuto contatti ufficiali con il governo: "No, non ancora", ci ha risposto la top manager. "Se espanderemo le nostre attività, allora vedremo. Se i nostri volumi cresceranno, allora ci sarà una possibilità. Quindi c'è un'opportunità, sì. Se dovremo ampliare la nostra capacità produttiva faremo delle valutazioni, andando Paese per Paese a valutare ogni situazione. Ma a oggi non abbiamo ancora avuto colloqui con Roma". [...]

 

https://www.quattroruote.it/news/industria-finanza/2024/04/22/byd_stella_li_una_fabbrica_in_italia_perche_no_.html

[KimKardashian]

Tutti i costruttori cinesi stanno valutando fabbriche in Europa, proprio come i giapponesi negli anni 80… e secondo me proprio come allora nessuna aprirà in Italia…