Recently, the company has increased its presence in foreign countries, such as Asia, Europe, Latin America. Exports account for about 6% of its car sales.

In addition to Vietnam, recently, this car company has also invested in Thailand and is considering building new factories in Indonesia and the Philippines.

Ambition to surpass Tesla in global electric vehicle sales

Last month, Nikkei Asia reported that BYD wants to surpass Tesla in global electric vehicle sales this year. To do this, they will expand production scale to double sales volume with all car models this year.

The chairman of BYD also said that he believes that the time for Chinese automakers to reach out has come and "1.4 billion Chinese people need a global Chinese car brand".

“Our starting target is 3 million units,” the BYD chairman told an investor conference in Hong Kong last month. But he also expressed his expectation to double last year’s sales to about 3.6 million units. This figure includes exported vehicles.

BYD stopped producing gasoline cars in March 2022, to focus on new "green cars" such as electric and hybrid vehicles.

The Chinese electric car maker has not revealed sales details for this year, but based on the 2022 report, it may aim to sell 1.75 million electric cars in 2023, close to 1.8 million units. of Tesla.

With the scale up, BYD expects to save on production costs per vehicle. It’s not clear if this will help lower the car’s price. But the cost savings will allow them to spend more on sales advertising.

In 2022, BYD overtook Volkswagen to become the world’s third-largest car company by market value ($99.7 billion), behind only Tesla ($656.4 billion) and Toyota ($231.2 billion). .

With a focus on electric vehicles and the mid-range segment (100,000-300,000 yuan or 350 million to more than 1 billion), Reuters believes that BYD’s direct competitor in Vietnam will be VinFast.

Increasing investment in Vietnam market

According to Mr. Wang Chuanfu, chairman of BYD, Vietnam hopes that Vietnam will create "favorable conditions" for the company to complete investment procedures and quickly start producing electric vehicles. These vehicles will be sold in Vietnam and other countries in Southeast Asia. From there, develop a plan to form a local supply chain.

Talking more about BYD in the Vietnamese market, the company has been present since the end of 2021 through the construction of a factory to assemble and produce iPads for Apple in Phu Tho. The project has a total investment of 268 million USD.

By 2022, BYD Electronics Co., Ltd. will officially go into production and currently has more than 4,000 employees. The company’s main product is the production of tablets, which by 2024 will produce products such as cars/new energy batteries. This year, the staff is expected to reach more than 10,000 people.

In May, BYD said it is currently planning to build a factory in Vietnam, aiming to diversify its supply chain and reduce dependence on the Chinese market. The total investment of this factory can be up to 250 million USD.

Deputy Prime Minister Tran Hong Ha emphasized that BYD is one of the famous enterprises in China with high competitiveness in the field of new technology. With the selection of Phu Tho province for investment, the Deputy Prime Minister believes that BYD Group will achieve good results and success.

"The expansion of activities from electronic manufacturing to electric car production will be a milestone, laying the foundation for BYD Group’s new investment and cooperation ideas in Vietnam," the Deputy Prime Minister affirmed.

BYD’s new factory in Vietnam is expected to be located in Phu Ha Industrial Park, Phu Tho Province. This plant is expected to supply components for BYD’s electric vehicle factory located in Thailand, with a capacity of 150,000 vehicles per year, which will come into operation from 2024.

BYD previously registered industrial designs for two hybrid models, BYD Destroyer 05 and BYD Cruiser 05 in Vietnam.