BYD has its sights set on Toyota. The world’s largest EV maker believes that once it reaches Toyota’s scale, it will make more money per vehicle. This year alone, BYD expects overseas sales to double. The company’s CEO even says that most of BYD’s profits will eventually come from overseas sales.
Can BYD make more money per vehicle than Toyota?
After its record-setting year in 2024, BYD believes this is only just the start. The Chinese EV giant announced earlier this week that revenue reached a record 777.1 billion yuan, or a whopping $107 billion, in 2024.
Even with some of the most affordable vehicles, including its Seagull EV, which starts at under $10,000 (69,800 yuan) in China, BYD is making money.
CEO Wang Chuanfu is confident that once BYD matches Toyota’s output, its vehicles will be more profitable. Wang told analysts this week (via Reuters) that BYD’s cost control was better and as sales continue growing, it will be evident.
With 10.8 million vehicles sold in 2024, Toyota remained the world’s top-selling carmaker. On the other hand, BYD sold just over 4.27 million new energy vehicles (NEVs), or EV and PHEVs.
BYD stopped making vehicles fully powered by an internal combustion engine (ICE) in 2022 to focus on plug-in hybrid (PHEV) and electric vehicles (EVs). So far, the move has paid off, with sales surging 41% in 2024 compared to the prior year.
Wang’s confidence comes as the brand continues expanding into new global markets. He told analysts that BYD aims to sell over 800,000 vehicles overseas in 2025, more than double the 417,204 it sold in 2024.
The company sees “great opportunities” for growth in Latin America and Southeast Asia, which are more open to Chinese auto brands. BYD also expects a “substantial rise” in market share in Britain, which is also more open.
Wang said BYD will be able to keep costs down by assembling its vehicles locally while it still sources key parts from China. He said “at a certain stage” the majority of company profits will be from overseas sales, but didn’t say when it would happen.
BYD is already a leading EV brand in places like Brazil, Australia, Mexico, Thailand, and other parts of Southeast Asia.
After opening a manufacturing plant in Thailand last year, BYD is building facilities in Brazil, Hungary, Turkey, and Indonesia. It’s also eyeing a third in Europe, possibly in Germany.
Electrek’s Take
Although most know BYD for its low-cost EVs, like the Seagull, it is also rolling out a slate of new luxury vehicles, smart SUVs, and electric supercars. The company is also quickly advancing new battery tech, smart driving systems, ultra-fast chargers, and more to drive growth over the next few years.
Top comment by Grant
BYD sales may surpass Toyota (I think they will). The important thing is that BYD makes electric vehicles. They are displacing gas vehicles. That is a huge win for the entire world. Maybe along the way Toyota and others shift faster to electric as well.
BYD’s beginnings as a battery maker have helped propel it to where it is today, but the company continues to advance new technology to stay ahead.
By making nearly every vehicle component in-house, BYD can offer vehicles at extremely affordable prices. For example, BYD builds every part for the Dolphin except for the windows and tires.
With Toyota delaying its EV battery plant in Japan this week, it could set itself further behind BYD and others as the industry moves to smarter, more advanced electric vehicles.
Will BYD eventually reach Toyota’s size, and will it be more profitable? Let us know what you think in the comments.
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