The discussion explored BYD’s strategic focus on the UK, the role of policy in accelerating the EV transition, and the company’s innovative approach to technology and customer experience. The conversation provided valuable insights into how BYD is navigating the challenges and opportunities of the global EV market.

Peter Burnett opened the discussion by asking Simon Bisp about BYD’s significant commitment to the UK, and why the UK offers BYD a particular opportunity. Bisp, who previously worked at Peugeot, explained that his transition to BYD was driven by the company’s unique positioning as a pioneer in electric and battery technology. “At Peugeot, the shift to EVs felt like a necessary direction, but at BYD, it’s in their DNA. They started as a battery manufacturer, and EVs have always been their focus,” he said. Bisp highlighted the UK’s importance as one of the largest automotive markets in Europe, particularly in light of the recent decision not to impose tariffs on EVs. “The UK’s policy environment has made it an even more attractive market for us,” he added.

Burnett then turned to the role of policy in shaping the EV market, noting that BYD had recently outsold Tesla in the UK. “How much does policy matter in driving this transition?” he asked. Bisp acknowledged that policy plays a significant role but emphasised that it primarily affects the speed of adoption rather than the overall strategy. “Our objective is to be the number one brand in every market we enter. Price and accessibility are key factors, and we’ve achieved price parity in the UK. Now, it’s about educating consumers,” he explained. Bisp pointed out that while many customers want to be environmentally conscious, price remains a decisive factor. BYD’s plug-in hybrid models, which offer an easier entry point for consumers with low EV penetration, have been particularly successful. “In China, 50% of our sales are plug-in hybrids, and they offer an impressive range of up to 2,000 kilometres,” he said.

The conversation then shifted to the challenges of transitioning to EVs in the UK. Burnett noted that dealers are now required to ensure that 28% of their sales are battery-powered EVs or face fines, with a broader target of 100% EV sales by 2030. Bisp expressed some reservations about this approach. “British people don’t like being told what to do. Instead of focusing on penalties, we should be encouraging people to buy EVs by highlighting the benefits,” he said. He criticised the current system, which allows manufacturers to offset targets by buying credits from others, arguing that investment in infrastructure would be more effective. “Tesla focused on creating reasons to purchase their vehicles rather than treating it as a profit centre. There’s a lot more we can do to make EVs appealing,” he added.

Burnett then asked about BYD’s recent US$5 billion post-IPO fundraising and how the company prioritises its investments. “Is the focus on EVs and battery development, or are there other areas?” he inquired. Bisp explained that BYD’s chairman, Wang Chuanfu, is deeply committed to innovation and adaptability. “The chairman often says that companies that don’t move forward simply die. He’s instilled a culture of constant evolution within BYD,” Bisp said. He shared an anecdote about visiting BYD’s museum in Shenzhen, which chronicles the company’s journey from its humble beginnings to its current status as a global leader. “I have a presentation for investors that I have to update every month because things change so quickly. We have over 100,000 engineers out of a million employees, and they are the beating heart of the organisation,” he said.

Bisp emphasised that BYD’s approach to innovation is not about solving specific problems but creating a “basket of solutions” for future challenges. “We don’t design for a particular problem; we develop a range of solutions that we can draw from when needed,” he explained. This philosophy extends to advanced driving technologies, automation, and alternative propulsion methods. “We’re working on solutions for problems that may or may not arise in the future,” he added. Bisp also highlighted BYD’s vertically integrated supply chain, which gives the company greater control over quality and costs. “When we first started making cars, people said we wouldn’t be able to sell them. So, we created our own sales network,” he said.

The discussion concluded with a brief mention of autonomous vehicles. Bisp noted that the technology for self-driving cars already exists, but regulatory hurdles remain. “The tech is there; it’s just a matter of regulation,” he said.

The fireside chat underscored BYD’s commitment to innovation, customer experience, and strategic growth in the UK. As Simon Bisp put it, “Our goal is not just to sell cars but to drive the transition to a sustainable future. The UK is a key part of that journey, and we’re excited about the opportunities ahead.” With its focus on education, accessibility, and cutting-edge technology, BYD is well-positioned to lead the charge in the global EV revolution.

The post BYD’s commitment to the UK and the future of electric vehicles appeared first on Focus - China Britain Business Council.

Chinese EV manufacturer BYD posted record sales of electric vehicles (EVs) in 2024, as Elon Musk’s Tesla saw sales slow for the first time in years. BYD reported that it sold 4.3 million EVs and hybrids in 2024, of which 1.76 million were pure EVs. While Tesla narrowly beat BYD across the whole of 2024, delivering 1.79 million pure EVs, BYD’s 2024 Q4 did actually surpass Tesla.

BYD (short for ‘Build Your Dreams’) was founded in 1995 as a rechargeable battery manufacturer. It expanded into automotive after buying a Shaanxi-based car company in 2003, using its battery experience and supply chains to pivot to EV. It is popular for its cheaper models, which range in price from around RMB 70,000 (£7,697) to RMB 200,000 (£21,991). Tesla’s Model 3, on the other hand, starts at RMB 231,900 (£25,499).

Tesla remains the world’s most valuable car maker, driven by its innovative approach, high-performance vehicles and strong branding (thanks, in part, to the inescapable figure of Elon Musk). However, its higher price point has made it less accessible to a broader market segment, an area where BYD has gained a competitive edge.

This edge over other Chinese brands and, increasingly, international brands, has been sharpened by a number of external and internal factors.

Like all Chinese EV companies, BYD has benefitted from extensive Chinese government subsidies over the past few decades. The government has been subsidising producers of EVs for public transport, taxis and the consumer market since 2009. More than RMB 200 billion (£22.14 billion) was spent on EV subsidies and tax breaks in China over the 2009-2022 period. Moreover, EV consumers in China have received purchase subsidies from the government for a number of years. China is expected to sell more EVs (pure EVs and hybrids) than traditional vehicles for the first time in 2025.

China also has a very strong position in the supply chains for the critical materials used to make EV batteries, especially rare earths. At present, China accounts for over 80% of the world’s rare earth processing, and in late 2024, the country banned shipments to the US of several minerals and metals used in semiconductor manufacturing and military applications, including gallium, germanium and antimony, citing national security concerns.

In terms of internal factors, BYD has also benefitted from its background as a battery manufacturer, which has given it a head start in terms of technology and access to materials. By keeping battery production in-house, it can also achieve significant cost savings.

The big threat posed by BYD’s recent success is increased competition for established automotive brands.

Western markets have largely taken a protectionist stance in response to the massive growth of China’s EV sector. In October 2024, tariffs of up to 45.3% on imports of Chinese-made EVs came into force across the EU, while the Biden administration has also imposed a 100% duty on EVs from China, with President-elect Donald Trump expected to impose further tariffs on imports.

Nevertheless, some commentators suggest that BYD and Tesla are so far ahead of the field that traditional automotive manufacturers are already struggling to compete. Indeed, the growth of the two companies is showing that brand recognition or company history are not predictors of success in the EV market. Future growth will come down to things like AI integration and battery technology, rather than just the cars themselves, giving Silicon Valley and fast-moving Chinese companies a leg-up over traditional car manufacturers.

Now the question for BYD will be whether it can translate its current sales figures, most of which are concentrated in the Chinese market, into global success. For Tesla and other EV manufacturers, the rise of BYD serves as a call to innovate in an increasingly competitive market, innovation that could have a positive knock-on effect in other areas. Ultimately, getting more EVs of any brand on the road is an important step towards giving more people more access to sustainable transportation options.

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