The world economy is generally divided into three regions. One is China. One is the US. The third is the EU. This means developing nations like India are left out of the equation. However, none of these developing nations has a GDP comparable to that of the other three.
For a company to win big, it needs to do extremely well in one of the big three or, even more impressively, more than one. Global EV leader BYD has begun to show that China is not its only market. In January, the European Automobile Manufacturers’ Association (ACEA) reported that BYD registrations rose 175.8% in the EU to 13,983. That compared to Tesla’s number fell 1.6% to 7,187
The BYD comparison to Tesla (NASDAQ: TSLA | TSLA Price Prediction) is impressive. However, it also did well against the legacy gas-powered car producers. Its registrations were close to those of Nissan and Volvo, each of which has been in the market for decades. At its current growth rate, it could catch Ford (NYSE: F). The No.2 US car company had registrations of 24,248, down 5.3%.
And BYD has started to build factories in the region, which should, in the future, increase its foothold. The EU has begun negotiating with Chinese EV companies based on the model price. BYD has a factory in Hungary. It will open one in Turkey. It may build one in Spain.
BYD’s spot in the Chinese New Energy Vehicle (NEV) market was 27.2% last year. To give a sense of what that means, GM’s share of the entire car market in the US is 17%. This is apples and oranges, but impressive nevertheless.
The biggest question about BYD’s growth is whether it can elbow its way into the US. With tariffs at 100%, the answer is “no”. The risk to Ford and GM (NYSE: GM) in their home markets would be too large. Tens of thousands of US jobs are at risk. However, President Trump sometimes makes unexpected trade-offs in his tariff deals with China. It might be attractive to have BYD factories in the US. BYD’s future here can only be based on a guess.
Has BYD taken over the global EV market? Not yet, but it is getting there.
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