Author: Jingtao Wu
In addition to the domestic sales market, BYD’s “Going Global Plan” has also achieved great success this year.
“BYD won the monthly sales championship”, “BYD’s sales hit a historic high again”, these are the news we repeatedly see in the automotive industry information in the second half of 2022. This year, BYD has a large influence and high sales volume in the domestic market, and its outstanding performance has already left many domestic new energy vehicle companies far behind.
Since August, BYD has maintained its position as the top seller in the domestic passenger car sales chart, and it is highly likely that it will overtake FAW-Volkswagen in December to win the annual sales championship in the domestic passenger car market.
According to the latest data in November, BYD’s single-month sales reached 229,900 vehicles, and the cumulative sales from January to November only lagged behind FAW-Volkswagen by 19,300 vehicles. In November alone, it narrowed the sales gap by 105,000 vehicles. For BYD that is making all-out efforts to hit the annual sales championship, this is definitely a major positive news.
Looking closely at BYD’s sales data for November, in addition to the domestic sales figure of 220,000 vehicles which is impressive, the export volume of 12,318 vehicles in a single month also caught people’s attention. This raises my curiosity – how does BYD perform in overseas markets, as it currently dominates the domestic market? Is it only “a big fish in a small pond,” or has it been able to achieve “both internal and external” balance?
After gathering some information, this article will discuss BYD’s current performance in the overseas passenger car market.
The First Year of “Going Global”
From a global perspective, 2022 can definitely be considered a key year for China’s new energy vehicle companies to go global. According to the data released by the China Association of Automobile Manufacturers, the export volume of domestic new energy vehicles from January to November this year was 593,000, double that of the same period last year.
In terms of information perception, the most iconic event this year was the Paris International Motor Show held in mid-October.# Chinese car companies, such as BYD and Great Wall, shone at the Paris Motor Show with their new energy vehicles and attracted high attention from foreign media and consumers due to the EU’s newly imposed ban on combustion engine cars. This is an unprecedented reception for Chinese auto brands at the international auto shows.
Regarding BYD specifically, this year has also been a “milestone” year for the company in overseas markets. BYD has been laying out its plans to enter the overseas passenger vehicle market for some time now. As early as 2020, BYD began cooperating with Motorysa, a local dealership in Colombia, to sell its full range of new energy passenger cars in the country.
In 2021, BYD’s passenger car export strategy accelerated with the official announcement of its “Export Passenger Cars” plan in May. In July, BYD partnered with RSA Group, a Norwegian auto dealer, to launch the BYD Tang EV in the local market. BYD then made a series of big moves, including entering the Japanese market in July, expanding its presence in Asia, Europe, and Latin America in August, and participating in the Paris Motor Show in October.
To date, BYD has entered the passenger vehicle markets of more than 35 overseas countries and regions, including Japan, Malaysia, Singapore, Israel, Thailand, India, Nepal, Laos, Mongolia, Cambodia, Germany, Sweden, Norway, the Netherlands, Denmark, Belgium (next plan is to enter the UK and French markets), Australia, New Zealand, Mauritius, Mexico, Brazil, Colombia, Uruguay, the Bahamas, Dominica, and Costa Rica.# Quantity and Quality Go Hand in Hand
BYD plans to invest in building new factories in Thailand, India, and Brazil this year, based on previous news reports. According to the progress of the “passenger car going global” plan, BYD has achieved remarkable results in this direction this year.
Firstly, in terms of “quantity,” BYD released monthly export sales figures for passenger cars for the first time in July this year. The export volume of BYD passenger cars from July to October was 4,026, 5,092, 7,736, and 9,529 units, respectively.
In November, BYD’s export volume of passenger cars exceeded 10,000 units, reaching 12,318, and the cumulative export sales from January to November this year reached 44,600 units.
As there are no overseas sales data before July, a year-on-year comparison cannot be made. However, from the month-on-month data, it can be seen that the newly added overseas markets of BYD since the second half of this year have greatly stimulated export sales.
Regarding the specific sales of models, as the main export model of BYD at this stage, the sales performance of the Yuan PLUS (ATTO3) in overseas markets has also been impressive.
In November, BYD’s ATTO 3 (Yuan PLUS) won the single-model sales championship for the whole series in Israel with sales of 2,333 units in a month.
The locally sold price of ATTO3 in Israel reached 156,500 new shekels (approximately RMB 318,400). In China, the starting price of BYD’s Yuan PLUS is only 137,800.
Also, in November, according to the latest sales data released by the Federal Chamber of Automotive Industries in Australia, BYD’s ATTO 3 (Yuan PLUS) ranked second in the pure electric vehicle sales chart.The top-ranked car on the list is the Tesla Model Y, with sales of 1,805 units. The BYD ATTO 3, with a single-month sales volume of 845 units, beat the Model 3 to take second place.
Secondly, the adaptability of the car model to different markets’ regulations and policies, as well as the user group’s experience review, are all related to the “quality” of the car model.
In terms of market adaptation, the BYD ATTO 3 (Yuan PLUS) has already received a five-star rating in the European safety test E-NCAP and the Australian safety test A-NCAP. With authoritative safety certification, this lays a good foundation for subsequent sales in the two markets.
Although the ATTO 3 easily won five-star ratings from two overseas safety testing institutions thanks to its excellent “quality,” as a car model that has shifted from domestic sales to exports, it is inevitable that there will be some “culture shock” symptoms, and the ability of the car company to adjust quickly becomes particularly important at this time.
More than a month before receiving the five-star rating in the Australian A-NCAP test, the BYD ATTO 3 (Yuan PLUS) was briefly banned from sale in the country.
The reason for the ban was that the child safety seat interface setting of the ATTO 3 violated the local motor vehicle regulations in Australia.
Due to the central seat fixing device of the BYD ATTO 3 rear seat being blocked by the carpet, the installation of the central child safety seat in the rear seat is affected. At the same time, the front seats of the ATTO 3 model are also equipped with child safety seat interfaces, but installing a child seat in the front row in Australia also does not meet regulatory requirements. Therefore, the ATTO 3 model was banned from sale in the country.Subsequently, BYD quickly resolved the model-related compliance issues, allowing the new car to be resold locally and earning a five-star rating in the subsequent A-NCAP test. This shows that BYD is well-prepared for the adaptability issues in overseas markets.
Finally, I searched for media test drive videos from Hong Kong, Japan, Australia, and New Zealand for the local user experience evaluation. (Interested friends can search for ATTO 3 on platforms such as Weibo.)
For the BYD ATTO 3 (Yuan PLUS) model, the overall evaluation from media test drives in different regions is quite high.
Among these test drive videos, the most frequently mentioned point is that, compared to the “oil-to-electric” models previously exported by Chinese brands, as a pure electric platform, the ATTO 3 has significantly improved in both human-machine engineering and driving experience.
It is evident that BYD’s recent rapid sales growth in overseas markets is not accidental. This is not only driven by an active strategic layout in overseas markets but also supported by solid and excellent vehicle products.
Based on the current trend, with the development of more overseas markets and an increase in exported models, BYD’s sales in overseas markets next year are likely to exhibit the same “skyrocketing” momentum as this year in the domestic market.
“Rolling” into Overseas Markets
Today’s article introduces the current situation of BYD’s overseas market layout, export sales, and the adaptability of their vehicles in overseas markets.
Compared to the leading position in the domestic market after a round of sprinting, BYD still has considerable room for growth in sales performance in overseas markets. Moreover, from the current trend, having experienced the harsh competition in the domestic market, BYD, as an outstanding brand, has also demonstrated strong competitiveness in overseas markets.
This reminds me of a post from Li Qian, the Secretary of the Board of Directors of BYD, on his moments last July after a rumor went viral on the internet that the US IRA Act would ban Chinese-made batteries in 2024:
“For years, the Chinese EV industry has been developing through relentless competition. Now the state of play is that the US relies on subsidy while China relies on internal competition and iteration. The trend is clear. Any enterprise that can fully compete in the Chinese market, even while surrounded by corpses, is likely to face little competition in the international market, and is more robust for having grown up fighting inside its own industry.“
From an individualistic standpoint, “internal competition” is not a work or lifestyle status that most of us would choose. But as consumers and automotive media, we are more than happy to see this kind of “internal competition” atmosphere among domestic auto manufacturers.
As consumers, fierce competition and internal competition among automotive companies can allow us to obtain more new products and better user experiences in a shorter time period. As automotive media practitioners, internal competition among automotive companies provides us with more high-quality content creation topics.
In China’s new energy market, where “internal competition” is severe and competition is fierce, it is undoubtedly a severe survival test for Chinese automakers. Even based on the ownership and penetration rate of new energy models, as well as consumer familiarity with the new energy models, the current Chinese new energy vehicle market may be the most competitive market for new energy vehicles globally, bar none.
If they pass the test successfully and climb out of this “deadly pit” with a full grade of difficulty, their abilities and self-confidence will naturally be at a higher level when dealing with markets with relatively lower difficulties in the future.
We often say that Chinese auto brands should face the world and go global. In the field of new energy, Chinese brands can benefit from passing through such a “ghost gate” before going abroad, which can better help them participate in international competition positively.I believe that Chinese car brands, represented by BYD, are gradually proving the positive significance of the “internal competition” through their outstanding sales performance in overseas markets.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.