BYD Is Set To Overtake Tesla's Lead In Southeast Asia
With a strong presence and an interesting lineup of cars, BYD is looking great in the region.
By Syazwan Bahri — 25 Jul 2024, 05:10 PM
Chinese electric car manufacturer BYD may soon surpass Tesla as the leading electric vehicle (EV) brand in Southeast Asia
BYD Co may soon surpass Tesla in annual EV sales this year due to rising demand in China, while growth in the US and Europe slows, according to Bloomberg. This marks a shift from January's trends when Bloomberg reported that Tesla was expected to bolster its lead through the end of the decade
BYD's impressive growth in Singapore, one of Southeast Asia's smaller car markets, underscores its ambition to lead in the region
The company has seen early success in Thailand, its largest overseas market, and is expanding its distribution through local partnerships.
Meanwhile, Tesla reported its lowest profit margin in over five years and fell short of Wall Street's earnings expectations for the second quarter. This was largely due to increasing price competition and a sharp slowdown in global EV demand.
BYD has also ramped up its marketing efforts in Singapore
The company has opened two restaurants featuring dishes inspired by its car models and offering test drives.
In the first half of this year, BYD's EV sales in Singapore surged 83% compared to the total for 2023, reaching 2,587 units. In contrast, Tesla sold just 28 more cars than last year, totaling 969 Teslas on the roads.
Another reason why BYD is climbing the charts in Singapore is because of the minimal price difference between BYD and Tesla, as car owners need to purchase a certificate that costs around SGD100,000 (RM345,839).
However, experts predict that BYD's reign may be short-lived
BYD's dominance might be temporary due to restrictive US and European Union tariffs, which confine the Chinese automaker's growth to Asia and emerging markets, according to Bloomberg.
With the slowing demand for battery EVs, internal combustion engines, including hybrids, will continue to generate profits for traditional automakers like General Motors, Volkswagen, and Ford, potentially leading to more share buybacks or takeover activities, noted Bloomberg's senior European auto analyst, Michael Dean.
