On July 15, according to the Financial Times, BYD Executive Vice President Li Ke said that even if BYD is unable to enter the U.S. market, BYD can surpass Toyota in sales and become the world's largest automaker. These remarks indicate that BYD will further increase its expansion efforts in the European market.


Li Ke

Last month, BYD founder and CEO Wang Chuanfu announced a plan that shocked rivals. He said that BYD will take the world's number one crown from Toyota in the next five years with its rapidly developing charging technology and explosive growth in overseas markets.

BYD sold 4.5 million vehicles last year, lower than Toyota's 10.5 million. Toyota's sales advantage relies on its access to the lucrative U.S. market and continued sales of internal combustion engine models.

"I think Wang Chuanfu's ambitious goal is based on our own organic growth," said Li Ke, who is in charge of BYD's international business. "We don't need the U.S. market to achieve this goal."

Li Ke also said,BYD does not need to use mergers and acquisitions to boost sales to take this crown from Toyota.Since 2020, Toyota has been the world's largest automaker.

There is no need to acquire European car companies

Europe is one of BYD's most important overseas markets. Here, its profit margins on electric cars and plug-in hybrids are higher than in China. According to the European Automobile Manufacturers Association, in May this year, BYD's European market share more than doubled from the same period last year to 2.8%, and has surpassed Ford, Tesla and Nissan.

In recent years, BYD has been paving the way for Chinese automakers to expand into overseas markets, betting that it will beat traditional European automakers with more competitive prices. BYD's rapid penetration into the European market and its advanced technology have prompted traditional automakers to cut costs and cooperate with other Chinese automakers to stay competitive.

Official data released on Tuesday showed that China's monthly car exports exceeded 1 million units for the first time in June, setting a record high, reflecting that Chinese automakers are looking to overseas markets to boost sales.

Li Ke said that BYD can become the world's largest automaker by sales without going through mergers and acquisitions, indicating that the company's interest in acquiring or investing in a troubled European car company has cooled.

Last year, French carmaker Renault rejected BYD's proposal to take a stake in the company, according to people familiar with the matter. BYD and Renault declined to comment.


Denza Z electric supercar

A person close to BYD said that a year ago, investing in a European car company was more attractive to BYD because it was seen as a "shortcut" that could help the company obtain production facilities and supply chain resources on the European continent.

BYD has invested heavily in its new premium brand Denza over the past year, so another deal with a European rival would be "too disruptive," the person added.

BYD is betting that Denza can withstand doubts and conquer the high-end market that has long been dominated by established German car companies. Last week, the company released Denza's new Z electric supercar, which will compete with models such as the Porsche 911, with a starting price of £142,900 in the UK.

"Wait another year and you will say we can do this successfully," Li Ke said. She thinks,BYD's "flash charging" technology will help the company conquer this difficult market.

BYD is investing nearly 2 billion euros and plans to build 3,000 flash charging piles in Europe by 2027. According to BYD, Denza brand models can be recharged to 70% within five minutes.

Li Ke said,BYD will "remain open to the opportunity" if there is an opportunity to acquire a European high-end car brand.However, she said that currently the company has not locked in a specific brand, and no potential acquisition targets have actively approached BYD.