BYD plans new premium brand

BYD is accelerating its production: The Chinese automaker took 13 years to build its first million electrified vehicles. The second million only took one year, and the leap from two to three million was achieved in just six months. Wang Chuanfu, Chairman and President of BYD, explains:

"I hope that everyone can support sustainable mobility to help cool the Earth by one degree Celsius and show the world our strength."

Starting in 2023, an additional premium label will join the quintet of brands BYD, Dynasty, Ocean, Denza, and Yangwang, making it a sextet.

New markets are also being targeted: After Europe, they are extending their reach to Japan, Thailand, and Brazil, with others to follow, complete with local production facilities. On the home market, BYD is also among the market share gainers, despite pandemic-related challenges, as China continues to enforce a very restrictive COVID policy. A key reason for this success is that BYD controls many aspects of its operations: Chairman Wang Chuanfu announced that BYD will introduce new safety technology in addition to its existing supply system for raw materials, battery cells, batteries, and vehicles:

"We are committed to reassuring our customers about safety, and we will never stop doing so."

The vertical integration of all components and processes is a major factor behind BYD's current success as it manufactures its own batteries, motors, electronics, and chips. By the end of 2021, BYD employed more than 40,000 engineers and technicians. As of June 2022, the company had applied for more than 37,000 patents and holds over 25,000 patents, according to its press release. BYD is also open to partnerships; since 2010, it has been cooperating with Daimler New Technology and uses suppliers like Bosch and Brembo in its current vehicles.

The European launch is intended to be tackled with a classic dealer network: BYD wants to cooperate with established wholesalers and retailers across Europe. In the first phase, there will be strategic partnerships with companies such as Louwman (Netherlands), the Hedin Mobility Group (Sweden and Germany), Nic. Christiansen Group (Denmark), RSA (Norway), and Shlomo Motors (Israel). Initially, the focus in Europe will be on the Benelux countries and the Nordic markets, which, except for Sweden, do not have their own car brands. The aim is to reach the next million even faster.

What does that mean?

Although BYD already has several brands and is fundamentally not positioned as a budget brand, the existing success is to be expanded. Therefore, in 2023, they also plan to target the premium segment. Here, in addition to European brands, they will also face competition from Nio and Geely, as well as Cadillac, Lexus, Acura, and Infiniti, and Genesis. It will be exciting to watch.