Following the launch of its first Southeast Asian production facility, BYD Co. will buy 20% of its Thai distributor, Rever Automotive Co.
The two firms' joint investment agreement, which Rever Automotive announced late Saturday, explains the action. Rever said the combined venture will boost their electric vehicle competitiveness, Bloomberg reported.
BYD announced the move days after opening a plant in Rayong, Thailand, nearly two years after buying property for its first Southeast Asian production site. The site will produce right-hand-drive automobiles for Thai and Southeast Asian customers.
According to the Chinese firm, the plant can produce 150,000 cars per year. The factory will also make batteries and gearboxes, it claimed.
The new investment plan follows a Friday meeting between BYD chairman and CEO Wang Chuanfu and Thai Prime Minister Srettha Thavisin. Customers in Thailand were upset about recent BYD model price decreases.
BYD is one of the leading companies to take advantage of Thailand's tax incentives, which aims to transform the country into the region's EV production hub. By 2030, Thailand wants EVs to make up 30% of its local car production.
BYD also Expanding in Turkey
Meanwhile, Turkey is expected to announce a $1 billion deal with BYD to build a new facility in Manisa province, according to sources. President Recep Tayyip Erdogan will attend a ceremony on Monday to announce the Chinese manufacturer's European expansion, despite rising trade tensions, per SCMP.
Turkey's customs-union agreement with the EU provides BYD with enhanced access to EU markets, thereby positioning the new factory optimally. The EU proposes to slap temporary duties on Chinese electric vehicles, adding 17.4% to existing levies.
Electric vehicles made up 7.5% of auto sales in Turkey, home to almost 90 million people, last year. The facility will target the European market, as well as a growing domestic demand.
A BYD 07 EV model electric car is displayed at the Beijing Auto Show on April 25, 2024.PEDRO PARDO/AFP via Getty Images
BYD Beats Tesla in 2nd Quarter of 2024
A recent report by Counterpoint Research predicted that BYD will exceed Tesla in battery electric vehicle (BEV) sales this year, a major industry change.This development shows the worldwide EV market's dynamic character, said Counterpoint researchers.
A TechTimes reported recently that BYD is beating Tesla in sales performance as it sold 426,039 BEVs in the second quarter, up 21%, while Tesla sold 443,956 cars, down 4.8%.
BYD, which produced over 3 million battery-only and hybrid cars last year, has surpassed Tesla's 1.84 million. While Tesla led the BEV market, the Chinese carmaker produced 1.6 million battery-only passenger vehicles and 1.4 million hybrids.
The EV maker still leads the BEV market, especially in China, despite losing the first quarter to Tesla. By 2024, Counterpoint Research expects China to sell four times more BEVs than North America.
Counterpoint expects that China will hold over 50% of the global BEV market until 2027, surpassing North America and Europe by 2030.
