BYD may not be a household name in the United States, but it has gained a lot of notoriety lately.
For a brief moment in December 2023, the Chinese automaker dethroned Tesla as the world’s most sensible electric car distributor. Just over a year later, on January 1, BYD reported its previous quarter.
Although you may not see a BYD car in America (yet), the company has created an affordable logo that’s popular in China and elsewhere.
Earlier this year, it announced a Cybertruck competitor, the BYD Shark, as well as a hybrid powertrain that allows its sedans to travel up to 1,250 miles without stopping.
Here’s the story of the company that proved it could surpass Elon Musk.
Wang Chuanfu and a cousin founded BYD in 1995. Wang, then a 29-year-old government researcher, came from a circle of relatives of rice farmers. He was given a scholarship and eventually moved to the Shenzhen Special Economic Zone to start his new business.
The “YD” in the call comes from Yadi, the Shenzhen town where the company was originally located, a South Korean newspaper reported. The “B” was later added as a promotional tool, according to the report. Wang has said in interviews that, taken together, the so-called BYD constitutes nothing in particular.
Only later did Wang derive the slogan “Build your dreams. “The company was also given the nickname “Bring Your Dollars. “
The company’s initial activity was not automobiles. They were mobile phone batteries. BYD challenged established Japanese suppliers Toyota and Sony by offering a less expensive alternative. In 2002, corporations such as Motorola, Nokia, Sony Ericsson, and Samsung were all BYD batteries.
BYD moved into the car business after buying Xi’an Tsinchuan, a failing state-owned automaker that was then an arm of the defense contractor Norinco, the South China Morning Post reported.
The company launched its first car in 2005. The BYD F3 was a compact sedan that resembled the Toyota Corolla. It sold for as little as 40,000 yuan, or about $5,850.
Billionaire investor Warren Buffett is one of the most prominent names who took an early interest in BYD. Aiming to invest in China’s booming automobile market, Buffett visited BYD’s headquarters.
The Wall Street Journal reported that while the Berkshire Hathaway mogul was present, Wang took a sip of battery fluid to check how empty his batteries were. Buffett was so excited by the experience that he proposed buying 25% of the company.
Wang rejected the offer, but Buffett was undeterred. Berkshire Hathaway acquired a 10% stake in BYD for $232 million in 2008.
The company introduced its first all-electric vehicle, the E6, in 2010. Thanks to subsidies from the Chinese government, it was able to compete with its Japanese counterparts.
But not everyone was impressed. Tesla CEO Elon Musk laughed in a 2011 interview when asked if he considered BYD a serious rival to Tesla.
“Have you seen their car?” he said. “I don’t think they make a good product. I don’t think it’s particularly attractive. The technology is not very strong.”
BYD established itself as one of the leading hybrid car manufacturers in China in the 2010s. Its greatest popularity is the Qin, launched in 2012, which has become one of the best-selling cars in China.
However, this is the only deal that has propelled BYD to the forefront of the scene. The company also introduced the Tang, a hybrid SUV, and partnered with Daimler AG (now Mercedes-Benz) to create its Denza line.
Although most of its sales in the fourth quarter of 2023 came from the Chinese market, BYD made headlines around the world when it probably achieved the impossible: it dethroned Tesla as the world’s largest distributor of electric cars.
The Chinese automaker has jumped on the electric vehicle wave with its new Seagull, which debuted for 73,000 yuan, or about $10,000, as did its Song, Qin Plus, Dolphin, Yuan Plus and Han electric vehicles.
Tesla reclaimed the crown in the first quarter of 2024, though both companies saw steep declines in their sales.
The Shark, unveiled in May, is the latest model offered by BYD.
This is a mid-size hybrid pickup truck and the cabin design combines external functionality, style and durability.
The truck has more than 430 horsepower, which is 170 less than Tesla’s all-wheel drive Cyberstuff. BYD claims it can accelerate from 0 to sixty kilometers per hour, or about 62 miles per hour, in about 5. 7 seconds. The vehicle has five seats and a maximum towing capacity of 2,500 kilograms, or just over 5,500 pounds. That’s about part of the Cybertruck’s towing capacity.
Designed for commuting and off-road driving, the Shark has 3 terrain modes: sand, powder, and snow.
It also has built-in features to make camping and off-road travel more accessible. The vehicle offers two-way charging, according to BYD’s website.
Although the Shark may not compete directly with the Cybertruck as a hybrid model not sold in the United States, it may appeal to EV enthusiasts looking for a more classic pickup truck design. It also has a competitive price of around $53,451, which is less than the Cybertruck’s starting price of $60,990.
For a while, it seemed like we were just a few years away from marketing Chinese electric cars in the United States. A BYD executive said as much in 2017, and the company even hired Leonardo DiCaprio as a logo ambassador for English-speaking customers. .
BYD has since expanded abroad. The Chinese automaker plans to open a factory in Mexico, which has alarmed US officials, and has even created its own transportation fleet in an effort to reduce export costs.
But the company says it has abandoned its plans of selling its EVs to Americans. Analysts have pointed to geopolitical tensions and trade barriers between the two countries, as well as the slumping demand for EVs in the United States.
BYD is updating its hybrid powertrain.
The company announced that the upgraded powertrains will be introduced in two sedans, one of which will be the BYD Seal 06, Bloomberg reported. Both models would cost less than 100,000 yuan, according to the company.
Hybrids account for the majority of BYD cars sold, according to a Reuters report. The new update gives them competitive merit over competitors such as Toyota and Volkswagon, which sell mostly gas-powered cars.
The powertrain system translates to about 81 miles per gallon at full charge, which is over triple the US fuel economy average for 2022 cars. That’s also close to 500 more miles of range than a hybrid 2023 Lexus ES, which was the longest-range hybrid in the Kelley Blue Book’s list last year.
Additional reporting by Graham Rapier.
BYD sold 1. 76 million electric vehicles in 2024, according to figures released on Wednesday.
That overall component of a larger total of 4. 27 million cars sold in total, which includes hybrid and electric models.
In an effort to boost sales during the Christmas quarter, Tesla increased discounts toward the end of the year. However, Tesla sold around 1. 79 million cars in 2024, marking its first year-on-year decline.
BYD similarly launched a series of discounts toward the end of the year and has grown in popularity with its hybrid models in the last few months. BYD’s 2024 sales include a monthly record of over 500,000 EVs and hybrids sold just in December, the company said.
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