Chinese manufacturer of electric vehicles, With a handIt achieved remarkable results in the local market, despite the fierce competition in terms of prices. Backed by investor Warren Buffett, the company showed significant sales growth, with 1.8 million zero-emission vehicles sold in the first eight months of the year, representing an 83% increase compared to the previous year. The victory was spurred by the growing adoption of electric vehicles in China, allowing BYD to overtake Volkswagen as the country’s largest car brand by sales volume. In addition, BYD recorded notable revenue growth, with a 73% increase in the first half of 2023 and an increase in gross margin from 13.5% to 18.5% over the past year, despite intense price competition.
According to information provided by the European Automobile Manufacturers Association, this share is expected to rise by up to 1.5%. So let’s dig deeper;
- Why are BYD cars so successful?
- Meanwhile, new BYD vehicles arrive
Why are BYD cars so successful?
Founded in 1995, BYD initially focused its business on battery production, later expanding its scope to enter the automotive sector in 2003 with… Development of electric and hybrid cars. This strategy has allowed it to emerge as a relevant player in the automotive market geared towards sustainable mobility. In 2008, Berkshire Hathaway, the financial holding company led by US billionaire investor Warren Buffett, acquired a 225 million share stake in Byd, listed on the Hong Kong Stock Exchange, strengthening its position as a major shareholder.
currently, Market value Berkshire Hathaway’s stake in BYD is worth about $3.2 billion. This maneuver reflects Buffett’s strategy of adapting his investment portfolio according to market opportunities and financial considerations.
While Warren Buffett may find reason to rejoice in BYD’s positive results, another billionaire, Tesla CEO Elon Musk, He begins to regard Byd as a formidable opponent. In the past, the two companies did not take each other seriously. In 2011, Elon Musk, in an interview with Bloomberg, laughed when asked if BYD could become a competitor to Tesla, commented sarcastically on BYD cars and asserted that the Chinese manufacturer could not compete with the Palo Alto brand.
Both companies have achieved leadership positions in the electric vehicle sector. In 2022, Chinese battery giant BYD surpassed Tesla in total electric vehicle sales in China, demonstrating BYD’s growing influence on the industry. As Tesla continues to dominate the battery electric vehicle market, BYD is working to bridge the gap between the two companies. In the second quarter of 2022, Tesla announced record deliveries of 466,140 vehicles, exceeding market expectations. These deliveries were associated with the Model 3 and Model Y, but also saw a significant increase for the Model S and Model
Tesla production reached 479,700 vehicles, exceeding deliveries again. China remains a strong point for Tesla, with more than 84,000 cars sold in the country in August, including those intended for export, representing a 30.9% increase from the previous month.
On the other side, BYD has achieved remarkable results, with 274,386 cars sold in China in August, most of them fully electric cars. BYD’s overseas sales saw a notable increase, reaching 25,023 units in August. Overall, BYD sold more than 1.79 million battery electric vehicles in 2022, representing an 83% increase from the previous year.
Meanwhile, new BYD vehicles arrive
With a hand The company plans to introduce it to the European market by introducing the new Seal and Seal U SUVs, which will be Marketed in Italy by the end of the year. This move will significantly expand its presence in the electric vehicle sector in Europe. Currently, BYD already offers five fully electric models on the Italian market, including the Han, Tang, Atto 3 and Dolphinin addition to the new U.S. seal and seal.
Seal, elegant Sports sedanIt features a dynamic design and includes advanced technologies such as the CTB and iTac system. It is available in two variants: the Design Edition with rear-wheel drive with a power of 230 kW and the Excellence Edition with all-wheel drive with a power of 390 kW. Both are equipped with 82.5 kWh Blade batteries which allow for a range of 520/570 km.
BYD expands its European presence with the Seal U SUV, offering two versions: Comfort, with a 71.8 kWh Blade battery that guarantees a range of up to 420 km, and Design, with an 87 kWh Blade battery that allows an autonomy of 500 km.
Before the launch of the SUV Seal yo In Italy, two versions of the Seal sedan will be available: the single-engine design with 313 hp, and the Excellence equipped with a twin engine with 530 hp. Both versions offer the convenience of fast charging, with the ability to go from 30% to 80% in just 26 minutes.
With so autonomy Ranges from 520 to 570 km With competitive prices starting at €47,000 and €49,000, BYD’s options present themselves as an interesting option for European consumers interested in high-quality electric mobility.
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