...BYD wrong-footed Western auto makers. The latter had not expected that it could bring its cost curve down so dramatically.
...BYD could do so (bring its cost curve) so dramatically because
1. It could achieve economies of scale via a large domestic market mobilised by Govt encouragement
2. It received initial subsidies
3. It is vertically integrated through its entire supply chain - from owning its own lithium mines, producing its own EV batteries and making the EV cars- fully in control of cost outcomes across the chain
4. It is prepared to sell at low margins to win market share and does not have to be accountable to its shareholders (like Western car makers) except the founder himself
5, It invested in technological advancement in the EV space while Western auto makers were sleeping on the wheels
And so it is able to have such explosive growth because it gave consumers Value - cheap affordable decent quality vehicles.
..BYD may be unable to capture much of US and EU auto market but is in pole position in other markets outside of those two regions - namely Asia, South America, Africa, Oceania, Eastern Europe. That would be a big loss for Western auto makers and the lithium producers supplying just to them.
BYD's Super Explosive Growth: 10x In 3 Years
BYD Global Sales
2021: 395,000
2022: 1.8M
2023: 3M
2024: 4M (f)
• BYD just raised its 2024 target to 4 million.
• Bigger than Honda/ Nissan, coming up fast on Ford.
• While VW reveals that it's "losing 500,000 cars", BYD is adding 1,000,000 a year. Stunning.
