BYD, a leading Chinese electric vehicle (EV) manufacturer, stands at the forefront of the global EV revolution. With innovative technology and a commitment to sustainable transportation, BYD is driving the future of clean and efficient mobility.
The prominent Chinese electric vehicle manufacturer, has rapidly gained a dominant position in the Southeast Asian market, surpassing competitors like Tesla and securing over 25% of the region’s electric vehicle sales. This success can be attributed to their competitive pricing and a strategic approach involving partnerships with major local conglomerates. These partnerships have enabled BYD to extend its market reach, assess consumer preferences, and effectively navigate the intricate regulatory landscape in Southeast Asia, according to insights from officials representing three partnering companies and industry analysts.
BYD’s adoption of a partnership-based approach, reminiscent of strategies employed by Japanese automakers in select Southeast Asian nations many years ago, is accelerating its market share growth. This approach stands in contrast to Tesla’s self-reliant distribution strategy, albeit with its own set of challenges.
By offering local dealers more attractive profit margins, BYD can establish trust and foster loyalty, laying the groundwork for broader expansion.
In the second quarter of 2023, the Chinese automaker captured over 26% of the burgeoning electric vehicle market in Southeast Asia. Notably, their Atto 3 model, which starts at $30,000 in Thailand, emerged as the top-selling electric vehicle in the region, as reported by Counterpoint. In contrast, Tesla’s most basic Model 3 is priced at around $57,500 in Thailand.
Electric vehicles accounted for 6.4% of total passenger vehicle sales in Southeast Asia during the second quarter, marking a notable increase from the previous quarter’s 3.8%. Following the European Commission’s recent announcement of an investigation into Beijing’s electric vehicle subsidies, the region could potentially become more significant for Chinese automakers.
BYD has established regional distribution partnerships with notable companies such as divisions of Sime Darby in Malaysia and Singapore, Indonesia’s Bakrie & Brothers, Ayala Corp in the Philippines, and Thailand’s Rever Automotive.
These partnerships are proving advantageous for BYD in a region where Chinese car brands lack an established track record, providing potential buyers with confidence, particularly in terms of after-sales support.
As part of its expansion strategy, BYD is making substantial investments, with nearly $500 million allocated for a new factory in Thailand. This facility, set to start producing 150,000 electric vehicles annually from 2024, will primarily serve Southeast Asian and European markets.
Meanwhile, partners like Ayala Corp’s AC Motors in the Philippines are focused on brand building and dispelling misconceptions about electric vehicles, emphasizing factors such as range and total cost of ownership.
In various Southeast Asian countries, BYD’s marketing efforts are visible through advertising campaigns, although some partner companies, like Rever in Thailand, have not disclosed their distribution and marketing strategies.
In Indonesia, BYD has leveraged its partnership with Bakrie & Brothers’ unit VKTR to secure a government contract for 52 electric buses in Jakarta, highlighting the importance of local partnerships in navigating the complex Indonesian market.
(Source: Devjyot Ghoshal | Stefanno Sulaiman | Reuters)
