Expansion of Electric Car Market by BYD in Latin America
In a bid to sustain its growth trajectory as a leading electric vehicle (EV) manufacturer, BYD has set its sights on expanding its operations in Latin America. The Chinese automaker aims to double its overseas sales to 800,000 units in 2025, with almost half of its cars sold abroad.
BYD's ambitious expansion plans come as it seeks to compensate for slowing growth and increased competition in the Chinese home market. In 2024, the company reported an annual revenue of 777 billion yuans (R$ 660 billion), a significant increase from previous years.
One of the key markets for BYD's expansion is Mexico, where the company aims to double its sales in 2025. However, the construction of the factory in Mexico is currently on hold due to concerns about leaking intelligent car technology to the United States.
BYD's priority in Mexico, as well as in other markets, is now light vehicles and plug-in hybrids instead of urban public transport. This shift in focus was confirmed by Jose Luis Torres De La Piedra, an electromobility specialist.
In Brazil, BYD is already making strides in the EV market. The company is about to start production in Camacari, Bahia, with operations scheduled to begin at the end of the month. However, the start date was delayed due to a series of labor violations revealed in December. The Ministry of Labor fined the company for keeping 163 Chinese workers in "conditions analogous to slavery", who were subjected to grueling shifts and lived in precarious accommodations.
Despite these challenges, BYD remains optimistic about its prospects in Brazil. The company is responsible for seven out of ten electric vehicles sold in the country, according to industry data.
BYD's expansion in Latin America is not limited to Brazil and Mexico. The company also plans to open a plant in Colombia to assemble light vehicles. In Colombia, BYD leads the electric vehicle market, accounting for 42.5% of sales in 2024.
BYD's new charging technology, the Super e-Platform, is another factor contributing to its success. A five-minute charge of this technology can give a car a range of 400 kilometers.
Comparatively, Tesla, a major player in the EV market, sold 1.8 million units in 2024, achieving a revenue of US$ 97.7 billion (R$ 605 billion). However, BYD outperformed Tesla in terms of EV sales in 2024, selling 4.2 million electric and plug-in hybrid vehicles, more than any other automaker in the world.
BYD's influence on the Brazilian government is also noteworthy. The company has been exerting its influence through a strong lobby to reduce import tariffs, a move that could further boost its sales in the country.
As BYD continues to expand its operations in Latin America, it is poised to become a major player in the region's EV market. The company's focus on light vehicles, plug-in hybrids, and innovative charging technology, coupled with its strong lobbying efforts, could make it a formidable competitor in the years to come.
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