How Did BYD Overtake Tesla, GM, and Volkswagen?

In recent years, the electric vehicle industry has become the fastest-growing segment of the global automobile market. Tesla, General Motors (GM), and Volkswagen (VW) were recognized as the leaders of this transformation. However, from 2023 onwards, this trend changed significantly — China’s BYD (Build Your Dreams) achieved major success not only in the domestic market but also globally, surpassing its competitors. In this article, we will explore the key factors behind BYD’s success.

1. Vertical Integration: Controlling Every Step

BYD has organized nearly all electric vehicle production processes using internal resources. This includes battery production, motor systems, and electronic control modules — all done within BYD’s own infrastructure. Tesla also produces batteries but relies on its partnership with Panasonic. GM and VW mostly depend on external suppliers.

BYD achieved independence in this area. Their LFP (lithium iron phosphate) battery technology, in particular, stands out for being cheaper, safer, and having a longer lifespan. This allowed them to lower production costs and gain a pricing advantage over competitors.

2. Wide Product Range and Mass-Market Strategy

Tesla targets the high-end market with relatively expensive cars like the Model S and Model X. BYD, on the other hand, has developed electric car models in a wide price range for different social groups:

• Entry-level city cars like Dolphin and Seagull;
  
• High-end models like Han and Tang;
  
• Commercial vehicles adapted to renewable energy.
  

This diversity attracted mass consumer interest. Notably, the Seagull model, released in 2024 at a price below $11,000, created a market revolution.

3. Synchronized Growth with Chinese Government

BYD has effectively leveraged Chinese government support for the EV sector. Tax benefits, subsidy programs, and infrastructure prioritization — all helped BYD to rapidly scale up production. VW and GM do not enjoy such governmental backing in other markets.

4. Aggressive Export Strategy

BYD is actively exporting its products not only in China but also to Southeast Asia, the Middle East, Latin America, and even Europe. The company has started building factories in Thailand, Brazil, Turkey, and other countries. In 2024, the BYD ATTO 3 model ranked among the top three best-selling EVs in Europe.

While other major brands remain cautious in exports, BYD is heavily investing in global expansion.

5. Innovative Approach and Technological Superiority

BYD is not only ahead in production volume but also in technological innovation. Blade Battery technology represents a new level in terms of safety and density. The company is also developing its own autonomous driving system called DiPilot.

While Tesla remains a leader in autopilot systems, BYD’s integration of AI-assistants into every vehicle has opened a new chapter in the competition.

If competitors continue to lag behind in the global EV race, BYD is poised to become not just the top EV seller, but the new global leader in the automotive industry. Read 'Zamin' on Telegram!