Chinese electric vehicle manufacturer BYD believes it can overtake Toyota as the world’s largest carmaker by vehicle sales without entering the U.S. market, according to comments by the company’s top international executive reported by the Financial Times, as the automaker prepares to intensify its expansion across Europe.
The Financial Times reported that Stella Li, who oversees BYD’s international operations, said the company’s ambition to surpass Toyota would be achieved through organic growth rather than acquisitions. Her remarks followed BYD founder and Chief Executive Wang Chuanfu’s announcement last month that the company aims to become the world’s largest carmaker within five years by accelerating overseas expansion and advancing charging technology.
“I think he made this ambitious target with our own organic growth,” Li told the Financial Times. “We don’t need the U.S. market to achieve that.”
Toyota sold 10.5 million vehicles last year, maintaining its position as the world’s largest carmaker, while BYD sold 4.5 million vehicles. According to the Financial Times, Toyota’s total benefits from its presence in the U.S. market and continued sales of internal combustion engine vehicles, while BYD remains excluded from selling passenger cars in the United States.
The report noted that tariffs on electric vehicles and restrictions on Chinese software introduced during the Biden administration have prevented BYD from entering the U.S. passenger vehicle market. The company currently manufactures heavy-duty trucks at a facility in California and has sold more than 100 of those vehicles in the country.
According to the Financial Times, BYD’s absence from the world’s second-largest automotive market remains a challenge at a time when slowing domestic demand and reduced government support for electric vehicles have intensified competition in China. The company’s first-half sales declined 16 per cent as weakness in its home market outweighed rapid international expansion.
Europe has emerged as one of BYD’s highest-priority overseas markets because it offers stronger profit margins for electric vehicles and plug-in hybrid models than China. The Financial Times reported that BYD’s market share in Europe more than doubled to 2.8 per cent in May compared with the same month a year earlier, allowing it to overtake Ford, Tesla and Nissan, according to data from the European Automobile Manufacturers’ Association (ACEA).
Founded in 1995 by former metallurgy professor Wang Chuanfu, BYD has become one of China’s fastest-growing global automotive manufacturers by using competitive pricing to challenge established European brands. According to the Financial Times, the company’s expansion and technological advances have prompted traditional automakers to reduce costs and strengthen partnerships with Chinese manufacturers in an effort to remain competitive.
Official Chinese data released on Tuesday also showed that the country’s vehicle exports reached a record one million units in June, highlighting the increasing importance of overseas markets for domestic manufacturers, the Financial Times reported.
Li’s comments also suggest that BYD has become less interested in acquiring a European automaker as a shortcut to expanding production capacity on the continent. The Financial Times reported that French manufacturer Renault rejected an approach from BYD last year regarding a potential investment. Both companies declined to comment on the reported discussions.
According to the Financial Times, a person familiar with BYD’s strategy said acquiring a European manufacturer had appeared more attractive a year earlier because it would have provided access to manufacturing facilities and supply chains. However, the company has since invested heavily in its premium Denza brand, making a major acquisition less appealing.
BYD is positioning Denza to compete directly with established German luxury manufacturers. The Financial Times reported that the company recently unveiled the Denza Z electric supercar, which will compete with vehicles such as the Porsche 911 and will carry a starting price of £142,900 in the United Kingdom.
Li told the Financial Times that BYD’s ultra-fast charging technology would strengthen the brand’s competitiveness in Europe’s premium segment. The company plans to invest nearly €2 billion to install 3,000 flash charging stations across Europe by 2027, stating that the network will allow Denza vehicles to recharge to 70 per cent capacity in five minutes.
While Li said she would remain open to acquiring a European premium automotive brand if an opportunity emerged, she told the Financial Times that no specific company was under consideration and that BYD had not been approached by any potential acquisition target.
