economie

The incredible rise of Chinese Tesla rival BYD, which recently revealed 2 hybrid sedans that can go 1,250 miles without stopping

May 29, 20240
The BYD nameplate is associated with the slogan “Build Your Dreams,” but that came after the company was formed.

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Wang Chuanfu and a cousin founded BYD in 1995. Then a 29-year-old government researcher, Wang came from a family of rice farmers. He earned a university scholarship and eventually moved to the Special Economic Zone in Shenzhen to start his new company.

The “YD” in the name came from Yadi, the village in Shenzhen where the company originally was, one South Korean newspaper reported. The “B” was added later as a promotional tool, the report said. Wang has said in interviews that, taken together, the BYD name doesn’t stand for anything in particular.

It was only later that Wang derived the slogan “Build Your Dreams.” The company has also acquired another nickname: “Bring Your Dollars.”

The company was originally a cellphone-battery manufacturer.
A BYD F3DM.

Peter Parks/AFP via Getty Images

BYD moved into the car business after buying Xi’an Tsinchuan, a failing state-owned automaker that was then an arm of the defense contractor Norinco, the South China Morning Post reported.

The company launched its first car in 2005. The BYD F3 was a compact sedan that resembled the Toyota Corolla. It sold for as little as 40,000 yuan, or about $5,850.

Warren Buffett was a key early booster.
A BYD E6.

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The company debuted its first fully electric vehicle, the E6, in 2010. Benefiting from Chinese government subsidies, it was able to compete with its Japanese counterparts.

But not everyone was impressed. Tesla CEO Elon Musk laughed in a 2011 interview when asked whether he considered BYD a serious rival to Tesla.

“Have you seen their car?” he said. “I don’t think they make a good product. I don’t think it’s particularly attractive. The technology is not very strong.”

BYD’s hybrid cars turned it into a titan of Chinese automakers.
A BYD Atto 3.

Athit Perawongmetha/Reuters

Even though most of its sales in the fourth quarter of 2023 came from the Chinese market, BYD made headlines across the globe when it seemingly did the impossible — it unseated Tesla as the world’s top seller of electric cars.

The Chinese automaker rode the EV wave on the back of its new Seagull, which debuted for 73,000 yuan, or about $10,000, as well as its Song, Qin Plus, Dolphin, Yuan Plus, and Han EVs.

Tesla reclaimed the crown in the first quarter of 2024, though both companies saw steep declines in their sales.

BYD’s Shark takes aim at Tesla’s Cybertruck
New BYD cars waiting to be loaded onto a ship in China’s Shandong province.

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For a time, it looked as if we were just a few years away from getting Chinese electric cars in the United States. A BYD executive said as much in 2017, and the company even hired Leonardo DiCaprio as a brand ambassador for English-speaking customers.

Since then, BYD has expanded overseas. The Chinese automaker is planning a factory in Mexico — alarming US officials — and even created its own shipping fleet in a bid to cut down on export costs.

But the company says it has abandoned its plans of selling its EVs to Americans. Analysts have pointed to geopolitical tensions and trade barriers between the two countries, as well as the slumping demand for EVs in the United States.

BYD is launching a new hybrid powertrain system on two midsize sedans — and it can drive 1,250 miles without charging or stopping to fill up for gas.
The upgraded powertrains will launch in two sedans for under $14,000.

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BYD is upgrading its hybrid powertrain system.

The company announced that the upgraded powertrains will launch in two of sedans, one of which will be the BYD Seal 06, Bloomberg reported. Both models will reportedly be under 100,000 yuan, according to the company.

Hybrids make up the majority of BYD vehicles sold, according to a Reuters report. The new upgrade gives them a competitive edge against rivals like Toyota and Volkswagon, which mostly sell fuel-powered vehicles.

The powertrain system translates to about 81 miles per gallon at full charge, which is over triple the US fuel economy average for 2022 cars. That’s also close to 500 more miles of range than a hybrid 2023 Lexus ES, which was the longest-range hybrid in the Kelley Blue Book’s list last year.

Additional reporting by Graham Rapier.