BYD's monthly overseas sales are approaching 80,000 vehicles. How can it do this?

BYD’s monthly overseas sales are approaching 80,000 vehicles. How can it do this? Who are they sold to? In April, BYD’s overseas sales exceeded 78,000 vehicles for the first time, setting a historical high. But in April last year, BYD’s overseas sales were only 41,000 vehicles, and the total for the whole year was only 410,000 vehicles. Now, 214,000 vehicles have been sold in the first quarter. It is equivalent to half a year’s sales in three months. How is this done?
First, localized factory construction. BYD has confirmed nine overseas factories, among which the Brazilian factory, the Thai factory, the Uzbek factory and the Indian factory have been put into production. When these four factories are operating at full capacity, the annual production capacity can exceed 600,000 vehicles.
There are also four factories under construction, namely the Hungarian factory, the Indonesian factory, the Cambodian factory and the Turkish factory. In addition, the Mexican factory is also under negotiation, with a planned production capacity of 150,000 vehicles. In fact, BYD also has a factory in the United States, but it specializes in the production of electric buses and cannot produce cars.
The advantage of building a local factory is that it can be based in the local area, realize local assembly, reduce costs, and occupy the local market faster. BYD, for example, relies on its Brazilian factory to radiate the entire Latin American region, and its monthly sales have exceeded 20,000 vehicles. BYD’s market share in Thailand’s new energy market is as high as 41%, ranking first in Thailand, with almost no rivals. Also relying on the Thai factory, it entered ASEAN, and in Singapore’s new energy market, its market share reached 20%, ranking first, and it also entered Malaysia, the Philippines and other countries.
After the Hungarian factory and the Turkish factory are completed and put into production, BYD’s market share in the EU and the Middle East will further rise.
Second, break through the European market. This is both unexpected and reasonable. Surprisingly, the first European country that BYD won was the UK! In March of this year, BYD’s monthly sales in the UK soared 754%, nearly 6,500 vehicles.
Why is it the UK? The root cause is that the British automobile industry has long been hollowed out. It doesn’t have any automobile industry, and it buys whatever it buys. And what about the UK? It has left the EU again, but it did not impose additional tariffs on Chinese electric cars like the EU did. Whether it is BYD or any other car company, they can enter the British market without obstacles.
BYD has swept the Japanese and Korean cars in China and surpassed the German cars. After arriving in the UK, it basically attacked with a dimensionality reduction and quickly emerged in the British market. From this, we can also see why the EU wants to restrict the import of Chinese electric cars? If the tariffs and the minimum import price restrictions are cancelled, Chinese car companies such as BYD, Geely, and Chery will enter the EU and basically sweep Europe.
Third, BYD has formed a special ocean-going fleet and has invested in 4 roll-on/roll-off transport ships. One ship can transport 9,200 vehicles at a time, and 4 ships can transport 36,800 vehicles in a round trip. BYD has ordered a total of 8 such transport ships, and the capacity will continue to increase with the delivery of the transport ships. Among them, the “Shenzhen” is the world’s largest car transport ship, which also demonstrates BYD’s vigorous ambition to expand overseas markets.
In fact, BYD’s domestic sales growth has slowed down significantly. In April, its total sales were 380,000 vehicles. Excluding 78,000 overseas sales, domestic sales were only 312,000 vehicles. In April last year, domestic sales were 270,000 vehicles, an increase of about 15% year-on-year. Compared with BYD’s peak growth period, it has slowed down significantly, but the growth rate of overseas sales has entered an acceleration period.
Only 41,000 vehicles were sold in April last year, and 78,000 vehicles were sold this year, an increase of 90%. This year, BYD’s overseas sales target is 800,000 vehicles, and basically there will be no major problems. This means that BYD’s overseas sales will double, thus narrowing the gap with SAIC and Chery.
In terms of overseas sales, Chery ranks first and SAIC ranks second, but SAIC’s exports have fallen significantly due to the impact of EU tariffs. BYD will soon surpass SAIC and catch up with Chery. In April, SAIC exported 85,900 vehicles and Chery exported 87,000 vehicles. BYD is only one step away from becoming the number one overseas.
In the captain’s opinion, the reason why BYD is catching up so fast is that it focuses on hybrid vehicles, which is more in line with global market demand. Tesla, which is pure electric, can’t sell in Asia, Africa and Latin America. Because most countries in the world don’t have infrastructure suitable for pure electric vehicles. What about hybrid vehicles? They use electricity for short distances and oil for long distances, saving oil and electricity, and can go anywhere, with a higher market coverage rate. Even in Africa, hybrid vehicles can still be sold, while pure electric vehicles can’t be sold.
Compared with pure electric vehicles, hybrid vehicles are the real global mainstream.