BYD is stalking ever closer to Tesla in terms of global electric car sales. In order to overtake the Musk Group, BYD is pursuing a radical expansion strategy. The US neighbor Mexico, where BYD has recently started selling the Seal model, represents a particularly important piece of the puzzle.
• BYD expands into Mexico and launches its fifth model there
• In the long term, BYD – like Tesla – could use Mexico as a production location
• BYD will probably sell almost as many fully electric cars as Tesla in 2023
Tesla has a global reputation Electric car-Sales still holds the pole position, but the gap between the industry leader and its Chinese competitor BYD has gradually narrowed in recent months. One reason for BYD’s strong catch-up is the Chinese company’s global growth strategy.
BYD launches Seal Electric Sedan in Mexico
In the first week of December, BYD launched the Seal in Mexico. This is the second vehicle from BYD’s Ocean series to be launched in Mexico, following the Dolphin, which was launched in September. Overall, this is already the launch of the fifth BYD electric vehicle in Mexico: In addition to the Dolphin, customers in Mexico have been able to buy the Han sedan, the Tang SUV and the Yuan Plus since June of this year.
BYD’s Seal can do that – and that’s how much the electric car costs in Mexico
Seal, an electric sedan similar to Tesla’s Model 3, is available in two versions: rear-wheel drive or all-wheel drive. The Mexican price for the rear-wheel drive (RWD) model starts at 778,800 Mexican pesos (approximately $44,600), according to “electrek” information, while the version with All-wheel drive (AWD; abbreviation for “all-wheel drive”, editor’s note) is available from 888,800 Mexican pesos (51,000 US dollars).
BYD’s Seal RWD model works with a 150 kW rear motor (almost 204 hp) and a 61.44 kWh LFP blade battery, which enables a WLTP range of up to 460 kilometers (286 miles). The AWD variant has a combined output of 390 kW (just over 530 hp), which is equipped with an 82.56 kWh LFP blade battery and offers a WLTP range of 520 kilometers (323 miles).
This makes the BYD sedan model quite affordable. For direct comparison, the similar Tesla Model 3 has a starting price of 881,900 Mexican pesos (US$50,500) and offers a range of around 638 kilometers. The AWD variant of the Model 3 starts at 985,900 Mexican pesos ($56,500) in Mexico, while the performance version costs at least 1,154,900 Mexican pesos ($66,100).
That’s why Mexico is an important market for BYD
Mexico is an emerging country whose economic output and population have increased significantly in recent years. In 2022, according to “statista”, Mexico was the tenth most populous country in the world with 127.5 million inhabitants. In addition, the Mexican economy grew by 3.9 percent in 2022. While a recession has already occurred or is imminent in many European countries, the Mexican economy is likely to continue to grow, according to “statista” forecasts, even if the pace will apparently also slow down in the medium term. The growing Mexican middle class is therefore likely to become more important as a customer base for electric cars in the coming years.
Mexico could also be a key region for BYD to establish production in North America. Analysts quoted by “electrek” believe that Mexico could also be a gateway for the introduction of electric vehicles in the USA. BYD is the only Chinese electric car manufacturer to have already opened a production company in the USA, namely the 50,000 square meter electric bus production facility in Lancaster, California.
Tesla could get ahead of BYD in building its own factory in Mexico, as the Musk Group announced in March that it would build a Gigafactory in Mexico. Due to construction delays, the first Tesla cars are unlikely to roll out of the planned Mexican production facility until 2026 at the earliest.
Global EV sales: BYD is catching up with Tesla
Meanwhile, competition in the globally growing electric car market continues to gain momentum. While long-established companies such as Ford, General Motors and Volkswagen are intensifying their efforts in the EV segment, there are two young companies that are dueling for global leadership: Tesla and BYD. The two EV pioneers are in a neck-and-neck race. In the third quarter, Tesla delivered 435,059 electric cars worldwide, while BYD was just behind with 431,603 fully electric cars. BYD has increased its sales enormously in recent weeks; the Chinese car manufacturer sold 335,655 fully electric cars in October and November alone. The Chinese whiz kid and former Munger favorite made a record profit in the third quarter.
In China, BYD has already overtaken Tesla in terms of the number of cars sold. In November, the Musk Group sold 82,432 electric cars in China, falling far behind BYD (301,378 cars). However, BYD’s number includes all vehicles with alternative drive technologies and not just electric cars. In terms of electric vehicles alone, Tesla is likely to be ahead again worldwide at least this year: While BYD is expected to sell a total of 1.57 million fully electric cars in 2023, according to an “electrek” estimate, Tesla says it is on the right track by the end of the year to sell 1.8 million cars. However, if you include BYD’s plug-in hybrid car in the statistics, then the Chinese car manufacturer based in Shenzhen is already ahead of Tesla.
Editorial team finanzen.net
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