There are 750 BYD Atto 3 electric SUVs parked in a squalid parking lot in Melbourne’s eastern suburbs, prepped for delivery Victoria’s controversial murder its $3000 EV discount.
But in times of supply shortages and Port congestion due to quarantine issuesHow does China’s emerging auto superpower achieve what other brands – excluding market leader Tesla – can’t?
Its vertical integration plays a huge role on the supply front, as BYD makes its own chips and batteries, meaning it is less stymied by global supply chain obstacles than other companies. OEM is more dependent on tier 1 suppliers.
But on the shipping front, the company quickly shifted gears to get the finished Atto 3s off the factory line straight into sealed shipping containers, thus avoiding the need for shipping. My car sits in the parking lot and picks up bugs and seeds, like so many other vehicles.
That’s key to the company’s Australian importer being able to capitalize on and buy so many cars here – so much so that BYD is now Australia’s number two EV brand behind Tesla, with the Atto 3 outselling even more. both Model 3 in May.
“We’re not short of batteries, we’re not short of chips,” said Mark Harland, chief executive officer of EVDirect, BYD’s Australian distributor.
“The second part is that we put cars in and because some ports are congested, we have been putting cars in containers for the past two months. We have eliminated the pollutant issues and are able to have a steady stream of cars arriving in Victoria and other parts of the country.”
Mr. Harland, a longtime executive at General Motors in Shanghai and at Holden, said this was something he had never experienced in his time in the auto industry.
“…. In my over 25 years in the automotive industry, I have never worked with an OEM that has been able to be as flexible and move as fast as possible, on the supply side and on the innovation side,” he said.
“Everything from moving cars into containers to building an incremental supply for our customers in Victoria, to updating cars with regular over-the-air updates… really just within a few weeks. I have never worked with an OEM as innovative and flexible as BYD.”
From the beginning of the year to the end of May 2023, BYD sold 4664 EVs in Australia, accounting for a 14.5% market share in total electric vehicle sales, second only to Tesla. The company’s 10,000th shipment for Australia is currently on a ship heading this way.
“We don’t necessarily consider Tesla our direct competitor, although from an electric vehicle standpoint they have set the standard,” Harland said.
“We consider BYD to be the main competitor to Toyota, Kia and other vehicles. We want BYD to be on those buyers’ shopping lists.”
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BYD’s European squad
BYD will launch its second electric vehicle, Dolphins have weird namesnext week, with prices expected to be the cheapest of any electric vehicle in the country, potentially even under $40,000.
Then, its Model 3 and Polestar 2 rival BYD Seal will launch in late 2023, with more models coming in 2024 and beyond – including the recently discovered electric dual-cab and plug-in hybrid.
Mr. Harland added that the company wants to reach sales of 50,000 units per year in the near future, which will help the company break into the top 10.
BYD is not the first Chinese brand to find innovative ways to solve shipping problems, with MG recently chartering its own ship to deliver over 3000 SUVs and hatchbacks to Port Kembla instead of sharing space with other brands.
