Chinese auto giant BYD continues to expand its operations across the world, with the Southeast Asian market being its latest focus.
The company already accounts for one in every four electric vehicle sales in the region with a 26% market share, Reuters reports, citing Counterpoint Research’s data.
Local presence
BYD currently sells the popular Atto 3 with a base price of $US30,000 ($AU46,600) in Thailand. It indicates a significant price difference from Tesla’s Model 3, starting at $US57,500 ($AU89,300).
That considered, it is unsurprising that many customers are going for BYD over other brands. True enough, 24% of the Chinese automaker’s foreign sales in Q2 2023 were in Thailand. In effect, the Asian country advanced as BYD’s biggest export market, the report noted.
It will also erect five “BYD by 1826” showrooms in Singapore, also serving as restaurants, Car Scoops asserted.
Expansion efforts
BYD is apparently employing Japanese legacy automakers’ strategy of establishing a strong foothold in the Southeast Asian market to guarantee a successful global expansion.
As EV-a2z previously reported, BYD has tapped reputable conglomerates across the region for distribution partnerships. It includes Malaysia’s Sime Darby, the Philippines’ Ayala Corp, Thailand’s Rever Automotive, and Indonesia’s Bakrie & Brothers.
In effect, the Chinese NEV giant has expanded its operations, navigated strict government standards, and tested demand.
“If buyers are unsure or have any concerns, partnering with established players like Sime Darby, Bakrie & Brothers, or Ayala Corp will give them the peace of mind, especially for aftersales support.”
Managing director from auto sales consultancy Urban Science, Chee-Kiang Lim
In addition, BYD is reportedly planning to solidify its presence in the Indonesian electric vehicle market by seeking government contracts for its innovative zero-emission buses.
It also committed a $500 million investment in Thailand for a new EV factory. It will reportedly hit an annual production capacity of 150,000 units from 2024. It will supply the company’s other markets in the region and beyond, including Europe.
Q2 2023 result
As mentioned, BYD accounted for 26% of Southeast Asia’s EV sales in the second quarter of 2023. The affordable BYD Atto 3 advanced as the top-selling EV model in the region.
Moreover, the new models’ proliferation recorded a 6.4% share of all new passenger vehicles sold there in the same period. It represents an almost twofold increase from just 3.8% in Q1 2023.
“At present, BYD’s primary focus is on brand proliferation rather than optimizing profit margins. By providing local dealers with more lucrative profit margins, BYD can cultivate trust and loyalty, paving the way for broader expansion.”
Counterpoint Research Senior Analyst Soumen Mandal
See Also:
- BYD expands partnerships to increase sales in Southeast Asia
- BYD plans to produce EVs in Vietnam in SE Asia push
- Three Southeast Asian countries are competing for China’s BYD plant
- Indonesia’s EV push to accelerate investments in Southeast Asia
- China EV sales in August 2023: Tesla, BYD, NIO, XPeng and Li Auto
BYD’s major push in the Southeast Asian market is crucial for the company to defend its strong position in the global industry. It will also serve as its advantage, considering that Tesla dominates the North American region.
The Chinese brand’s affordable and attractive electric vehicle offerings are the main driver of its growth, which gives customers a wide range of options. In effect, it attracts and encourages new customers to join the transition.
