China’s leading EV manufacturer is an industrial giant. BYD, which stands for “Build Your Dreams,” is China’s largest manufacturer of EVs. It has clicked back a notch from entering the U.S. market with U.S-China tensions on the rise. But make no mistake, the day is coming and coming soon, when Americans will be able to own EVs that feature the same quality and features, for $10,000 or less than the competition. At those reduced prices, would you buy one?
Why isn’t EV maker BYD already in the U.S.?
BYD has global ambitions and has the products, and funding, to accomplish that goal. America is in its sights. For now, BYD is holding off. “Tense relations between Washington and Beijing, anti-China sentiment in the United States, and President Joe Biden’s move to prioritize home-grown production of EVs and batteries, all pushed BYD to hit the pause button,” one source told Automotive News.
What most impedes the company’s goals of U.S. domination is the Inflation Reduction Act. It puts restrictions on EVs brought into the U.S. So any advantage in pricing gets squashed by the $7,500 tax credit given to EV buyers. “Who would start selling cars with a $7,500 disadvantage?” said another source.
How many EVs did BYD sell last year?
BYD sold 1.86 million BEVs and plug-in hybrids in 2022. Tesla, sold 1.3 million, putting BYD ahead by plenty. And we know Tesla is having a harder time selling Model 3 and Model Y Teslas with its recent price reduction in China, not to mention here. However, Tesla still sells more BEVs than doe BYD.
BYD already sells vehicles in the U.S. It has sold EV buses for over 10 years throughout the country, and manufactures them in Lancaster, California. So it knows the lay of the land, and how to manufacture here. And both its Han fastback sedan and Tang crossover look to be worthy contenders here.
The company’s goal is to rival Toyota in both sales, quality, and dependability. It knows it needs competitive cars, as seen when China’s Chery Automobiles canceled importing into the U.S. in 2021 over quality concerns. BYD’s chairman Wang Chuanfu said as much five years ago about his own cars.
Where does BYD sell its EVs now?
Even without sales in the U.S., it plans on hitting three million sales by 2025. At that pace, 10 million vehicles a year should come by 2030. For that goal, it would have to be sold in the U.S. It is already sold in Norway, Australia, Britain, Brazil, Costa Rica, Germany, Japan, Mexico, and Singapore.
Battery and electric motor supplies are no problem for the Chinese. It has its own mining and battery manufacturing to handle supplying its own manufacturers on its own. So it can do it all from supplying its own components to development, manufacturing, and distribution. But coming to America will need to happen, and BYD is banking on its vertical integration and price advantage to take a big chunk of its EV sales here.