BYD's overseas strategy: Brazil is the top priority, ASEAN is the current focus, and Europe is the future
Morgan Stanley stated that exports will remain a key pillar for BYD to achieve sales growth in 2025, until its overseas production bases are fully operational. In the context of increasing geopolitical tensions in other regions, ASEAN and Latin America will become major sales markets for BYD
Exports remain a key focus for BYD, with Brazil being a top priority, ASEAN being current, and Europe being the future.
On January 15, Morgan Stanley strategy analyst Tim Hsiao and his team released a report stating that exports will continue to be a key pillar for BYD to achieve sales growth by 2025, until its overseas production bases are fully operational.
In the context of escalating geopolitical tensions in other regions, ASEAN and Latin America will become major sales areas for BYD, with Brazil being a top priority. Additionally, despite increasing protectionist pressures from the West, Europe remains a strategic focus.
To address the growing geopolitical tensions, BYD also plans to establish localized production bases in Thailand, Brazil, Uzbekistan, Hungary, Indonesia, Turkey, and Cambodia. Morgan Stanley stated that these production bases are expected to become key electric vehicle production hubs for BYD in ASEAN and Latin America over the next decade.
Brazil is a Top Priority
According to BYD's announcement, in 2024, BYD's overseas sales reached 417,200 units, with Brazil being the largest export market. According to data from the Brazilian National Vehicle Distribution Federation, BYD's registered vehicles in Brazil reached 76,700 units in 2024, a year-on-year increase of 328%; sales momentum further accelerated, setting a record of over 10,000 deliveries in December, significantly higher than the monthly average of 7,000 to 8,000 units in the second half of 2024.
Currently, BYD has launched seven models in Brazil, with the Song PLUS and Dolphin Mini being the most popular. Additionally, BYD is building a factory in Brazil, with an initial capacity of about 150,000 units.
ASEAN Also Has Huge Potential
In addition to Brazil, Morgan Stanley believes that the ASEAN market also holds great potential for BYD.
Recently, BYD's sales in the ASEAN market have shown strong growth, with monthly shipments increasing from 2,000-3,000 units in 2023 to 5,000-6,000 units in the second half of 2024. Notably, since BYD's debut in Indonesia at the beginning of 2024, the Indonesian market has quickly surpassed Thailand, becoming BYD's largest market in Southeast Asia.
To better meet the needs of ASEAN customers, BYD plans to launch plug-in hybrid electric vehicles (PHEVs) to address the limitations of battery electric vehicles (BEVs). BYD's Sealion PHEV model was launched in Thailand and the Philippines in the third quarter of 2024, and it is expected to debut in other ASEAN markets this year.
Europe Remains a Strategic Focus
Furthermore, Morgan Stanley stated that despite increasing protectionist pressures from the West, Europe remains a strategic focus for BYD.
BYD's monthly delivery volume in Europe increased significantly from 3,000-4,000 units in the first half of 2024 to 6,000-7,000 units in October and November. Specifically, EU countries account for over 70% of BYD's vehicle sales in Europe, contributing several percentage points to its total overseas sales. Within the entire European market, the UK is BYD's largest single market in the first eleven months of 2024 Despite facing the challenge of increased tariffs, BYD still plans to launch the new Atto 2 compact SUV in Europe in February