Why BYD Will Surpass Tesla as the New King of Electric Vehicles
Originally posted on Makeuseof.com
By Charles Early
BYD is one of the largest electric car brands in the world. How is it that so few people have heard of it?
This is an exciting time for the electric vehicle market. It’s one of the most rapidly growing industries in technology and design. Tesla has risen to the top of electric vehicle manufacturers in recent years because of its good looks and moderate price, with companies like Mercedes, Toyota, and Lucid trailing behind.
Since changing from a company that only made batteries to manufacturing full-scale electric vehicles, BYD has made a tremendous impact on the EV market. While discussing EV innovations, here’s why BYD is a name you’ll want to remember.
From Battery Expert to Electric Vehicle Maker
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BYD (Build Your Dreams) is a Chinese company based in Shenzhen founded in 1995 by chemist, billionaire, and entrepreneur Wang Chuanfu. Chuanfu's goal was to compete with Japan’s rechargeable battery export market by creating his own company. This led to China taking much of the rechargeable battery market share away from Japan.
As a maker of rechargeable batteries, BYD became the largest supplier of batteries for mobile phones, which accounts for much of its revenue to this day.
Wang Chuanfu saw opportunities in electric vehicles, so he bought out Chinese automaker Tsinchuan Automobile Co Ltd, in 2002. He later bought more struggling automakers using already established factories making BYD the international company it is today.
Since starting out as a trailblazer in battery technology, BYD has created innovations that span multiple industries. According to its website, BYD has designed technologies for battery-electric cars, buses, trucks, forklifts, the SkyRail monorail system, solar power generation, energy storage, and consumer electronics.
Now considered among the largest electric vehicle manufacturer on the market and the fourth-largest battery manufacturer, BYD’s ambitious dreams are being realized. The company is currently valued at 950.77 billion Hong Kong dollars or 121.16 billion U.S. dollars. Internationally, its dominance has expanded beyond the Chinese market.
Billionaire Warren Buffett has been one of its largest investors since 2008, owning 7.73% of the company. Despite being relatively new to selling cars, it plans to sell vehicles in numerous countries in the coming years, notably in Australia, Europe, and North America.
BYD’s Innovations
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Besides Tesla, there are many electric vehicle companies breaking new ground. BYD is one of China's top car manufacturers. It sold over 640,000 new energy passenger cars in the first half of the year, an increase of 300% from last year. This surpasses Tesla’s first-half sales by 76,000. A key factor in BYD's success is its patent portfolio. With 9,426 patents, it ranks first among the top 20 Chinese companies in the field of new energy.
With over 21,000 granted patents across four battery business sectors in electronics, automobiles, and rail transportation, BYD is a world leader in battery innovation. For the advancement of battery technology, it is ranked first in the number of R&D personnel compared to other Chinese companies.
Strong scientific research is vital to brand development and the new energy market. BYD has opened the industry doors and become a major contributor with its advanced technology.
A key move for BYD in the supply chain is the separation of its battery business and distribution to more Original Equipment Manufacturers (OEMs), joining forces with the likes of Mercedes, and Toyota. This will allow its technology to reach a global market.
BYD's Big Three Offerings
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When BYD introduced the big three in 2021, the EV market took a major leap forward. These are the DM-I super hybrid, its E- platform, and the blade battery.
The DM-I Super hybrid gets 3.8 KPG per 100 kilometers. This is an excellent starting point for the future development of hybrid vehicles. As the DM-I super-hybrid technology is improved, fuel consumption will be reduced and cost performance will be increased.
Its E-platform 3.0 has played an important role in the transition from pure electrification to more intelligence. On its website, BYD states that it will promote intelligence, efficiency, and safety in future electric vehicles.
BYD currently manufactures 80-gigawatt hours of batteries for electric vehicles, about 10% of the world's capacity. It is predicted to reach 185-gigawatt hours by 2025. It's no wonder that its blade battery has had the greatest impact on the EV market.
The Incredible Blade Battery
The Blade Battery is a revolutionary piece of technology in terms of safety. When considering buying an electric vehicle there are things you should know about EV batteries. Longevity and safety are two major factors that really matter. BYD’s blade battery outperforms the competition, being the only one to pass an exhaustive acupuncture test and completely eliminating spontaneous battery combustion in electric vehicles going forward.
Since its development, the cobalt-free battery has greatly increased in energy density, making it a perfect balance between performance and cost efficiency. The Blade’s cells have a lifespan of 1.2 million kilometers or 3,000 charging cycles, making it an excellent choice for long-term use.
Due to ergonomic Blade battery design choices, BYD engineers have managed to decrease the overall cubic volume of the battery installation by 50% providing more space for vehicle storage and other auxiliary design features.
BYD's Big Plans for the Rest of the World
In addition to its electric buses already being sold in Europe, India, and Japan, BYD plans to sell cars in Australia, Latin America, and Southeast Asia. In a recent deal with Louwman, it's currently preparing for its European launch. Tesla's new Model Y will also be equipped with the new Blade battery. BYD has made such strides because of its willingness to give dealers more profits than its competitors.
The Chinese are known for producing products at lower prices. Using the same approach and a well-established reputation in the mainstream EV market, its cheapest car costs only $15,000, compared to $30,000 for the Model 3.
A Name to Remember
Tesla has been on top of the electric vehicle market for some time now with other carmakers trying to catch up. Despite its lack of recognition in comparison to Tesla, Mercedes, Honda, and Toyota, top executives in the EV industry know this will change very soon.
In the coming years, as electric vehicles become even more commonplace, popular brands will find themselves trying to keep up with a new King. With patience and continued miracles from its deep technical reserves, BYD is already in the position to become a major global player in the electric vehicle market.
