Leading the EV pack, it's the big BYD wolf

EV giant BYD has led a brutal price war that has pushed it to become the largest seller in the world's biggest car market. This Monday, it reported $107 bn in revenue for 2024, crossing the $100 bn barrier for the first time. Displacing Volkswagen as China's top carmaker by sales, the company is aggressively expanding into overseas markets. BYD a.k.a. NOT Tesla is considering Germany for a third plant in Europe as overseas shipments climb to a tenth of overall car sales. The company plans to double overseas sales this year and is working around tariffs by assembling cars locally. In 2024, BYD posted revenue and profit growth of 29% and 34%, respectively, which compare very favourably to Tesla's performance in both its home market and in Europe. BYD outsold the American EV maker last year, although it doesn't sell in Canada or the US, which impose 100% tariffs on Chinese-made EVs.

The scorching growth is not at immediate risk of slacking. BYD has unveiled a battery charging system that can charge an EV in the time it takes to fill a tank of petrol. It plans to roll out a network of these superchargers across China. This could be a key breakthrough in neutralising consumer resistance and expanding the EV market. BYD also intends to offer driverless car tech across its entire portfolio at no extra charge. This is an unbeatable value proposition. This is what fetches Tesla its eye-watering stock valuation, even as it trails most of its Chinese rivals in autonomous driving. Tesla has tied up with Chinese tech companies to offer its version of self-driving cars. But it has some way to go even against solutions being developed in the US.

Chinese policy has supported BYD's ascent to the top of the heap through subsidised electric mobility and accelerated adoption of self-driving technology. This has allowed the company to whittle EV costs to a point that renders state support irrelevant. This ensures its growth in overseas markets where governments may be unwilling or unable to support EV tech or infrastructure. For now, BYD seems unstoppable.