The Chinese BYD, Tesla’s Biggest Competitor, Is Going to Attack the European Market.
Mocked by Elon Musk for his investment in BYD, Warren Buffett could soon have his revenge.
Have you ever heard of BYD? If you are not particularly interested in the world of electric cars or automobiles, chances are you have never heard of BYD Auto.
BYD Auto is a Chinese manufacturer that is the current number one competitor to Tesla in terms of sales. BYD now wants to conquer Europe and will expand its activities in Europe, in this case in Sweden and Germany. The first deliveries are expected in the last quarter of 2022. But it is not yet known which models will be available and for what price.
In the first half of 2022, Chinese electric carmaker BYD beat Tesla to its throne in terms of global sales, with about 80,000 more electric vehicles sold. The lockdown in Shanghai and other Chinese cities, which partly crippled Tesla and which BYD was able to escape, may have had something to do with it, but the company's business is expanding rapidly.
BYD (for Build Your Dreams) is a company that Warren Buffet bet on a long time ago, and Elon Musk made fun of it at the time. It's 2022 and BYD is attacking Tesla on another flank: Europe.
Before the end of 2022, BYD's vehicles will be available in Germany and Sweden, reports Electrek. Just ten days ago, the brand also announced that it would expand into the Japanese market as early as January 2023. Before Germany and Sweden, BYD had already entered Norway, starting in 2020. Norway is a particular market for electric vehicles: the country is, with a GDP of 67,000 dollars per capita, much richer than Sweden (GDP of 51,000 dollars per capita) or Germany (GDP of 45,000 dollars per capita).
The use of electric cars is widely encouraged in Norway by environmental policies, and their share in the car fleet is rapidly increasing. In 2021, for example, electric cars will represent 65% of new car sales. Thus, setting up in Norway is often seen as putting the first foot through the door for international brands that want to try their hand in Europe.
The mystery will remain until the first showroom in October 2022
For its expansion in Europe, BYD has entered into a partnership with Hedin Mobility, a Swedish distributor that will handle vehicle sales and after-sales service. The group will set up “pioneer showrooms” across major cities in both countries. The first one will open in Stockholm in October 2022.
The first sales can take place in October, and the first deliveries should follow in the last quarter of 2022. But that's about all the information the brand is giving: the available models, their technical specifications, their prices, and where the other showrooms will be located, this will be communicated only in September 2022.
But for the price too, Tesla could have some worries from its competitor: in China, BYD's Han EV costs the equivalent of $32,000, while a Model Y costs almost $50,000. It remains to be seen at what price BYD will offer its models to Germans and Swedes, but the price will certainly play into the hands of a hesitant consumer. The electric Dacia (Spring), the cheapest on the market, is often at the top of the sales charts.
This should be another thorn in the side of Elon Musk, who has set sales targets that will be difficult for Tesla to reach in the coming years. Especially if a competitor like BYD comes to compete at a lower cost on the European market.
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