Article revealed issues in BYD meeting 2023 agreessive targets
This article revealed several issues faced by BYD: No plan to enter US EV market, production significantly behind Tesla in Q1 2023, overseas sales 3% of 2022’s volume in stark contrast to Tesla, domestic sales network and customer service drawn complaints etc...
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However, even with such aggressive plans, as was earlier reported, BYD has no intentions of entering the U.S. market. Additionally, performance in the first quarter left much to be desired as BYD produced 260,000 units, significantly behind Tesla’s 420,000, which was partly driven by aggressive price cuts in several markets.
The success of these lofty ambitions depends on several factors, key among which is a ramping up of exports, an area which BYD has found challenging so far, with overseas sales accounting for only 3% of 2022’s volume, in stark contrast to Tesla. BYD is also looking to improve its domestic sales network and customer service, which have been found lacking by consumers in certain situations, and have drawn complaints.
But arguably, the largest issue facing BYD’s expansion plans may be China’s withdrawal of subsidies for EVs, which happened in December 2022. These subsidies were a major driver of volume in the sector, and the long-term effects of their withdrawal remain to be seen.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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geda : Holding until 2026, every shareholder will be able to share the development results of BYD and obtain huge excess benefits
ZnWC OP geda : It is difficult to achieve the new target if sales are predominantly in China - 97% 2022's volume and refuse to enter US market which is 2nd largest EV market. Most of the sales are supported by China Government incentive which ended in Dec 2022. The only way is price cutting to push demand in which profitability will suffer.
geda : A year ago, the government issued a document announcing the termination of the NEV purchase subsidy policy on December 31, 2022. Now, this 13-year new energy subsidy program has withdrawn from the historical stage.
ZnWC OP geda : After Government Incentive has stopped, BYD still has expansion issue. It may be just an illusion that BYD is leading.