What’s new: BYD Co. Ltd. (002594.SZ) has unveiled a plan to further improve its brand image and expand its global influence, which could help the Chinese carmaker strengthen its position as the world’s leading electric vehicle (EV) maker and win more overseas customers.
Hong Kong and Shenzhen-listed BYD plans to “launch a number of high-end luxury models” beginning this year as it aims to carve out a bigger slice of the premium car market, the firm said in a stock exchange filing dated Sunday, without giving further details. BYD surpassed Tesla Inc. to become the largest EV-maker in vehicle sales in the fourth quarter.
China’s biggest carmaker said it will continue to invest heavily in research and development as it “safeguards shareholder interests and boost investor confidence.” The company said it will also continue to expand overseas and is set to start production in Thailand, Brazil and Hungary.
The background: BYD’s announcement follows supportive measures announced for the country’s new-energy vehicle (NEV) industry in early February by the Ministry of Commerce and eight government agencies, which included encouraging NEV companies and their suppliers to set up overseas research centers, providing them with more financing support, expanding overseas supply chains, and addressing foreign trade restrictions.
BYD is also striving to outgrow its image as a manufacturer of mid- to low-end vehicles to attract wealthier customers who have long preferred foreign brands like BMW, Mercedes-Benz and Audi.
The carmaker owns two luxury brands, Yangwang and Fang Cheng Bao. One of its Yangwang models retails for around 1 million yuan ($140,000). It also owns high-end brand Denza in partnership with Mercedes-Benz Group AG.
Last year, BYD exported 242,765 vehicles, a year-on-year increase of 334.2%, according to company data.
Contact reporter Ding Yi (yiding@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
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