In recent years, BYD, the Chinese electric vehicle giant, has been making waves in global markets, particularly focusing its efforts on exportsThe company has identified Brazil as a crucial market, Southeast Asia as a current priority, and Europe as a future targetMorgan Stanley's strategic analyst Tim Hsiao and his team released a report indicating that exports are essential for BYD to achieve substantial sales growth by 2025, especially until its overseas production facilities become fully operational.

As geopolitical tensions escalate in various regions, Southeast Asia and Latin America are seen as pivotal sales areas for BYD, with Brazil standing out as a primary focusThe company aims to navigate the increasing wave of protectionism from the West, while still keeping Europe as part of its strategic ambition.

To address the mounting geopolitical challenges, BYD plans to establish localized production bases in several countries including Thailand, Brazil, Uzbekistan, Hungary, Indonesia, Turkey, and Cambodia

According to Morgan Stanley, these production sites are expected to evolve into key electric vehicle manufacturing hubs for BYD in Southeast Asia and Latin America over the next decade.

Particularly in Brazil, BYD's commitment is evidentThe company reported reaching an overseas sales figure of 417,200 vehicles in 2024, with Brazil being the largest export destinationThe Brazilian National Association of Vehicle Distribution reported that registration numbers for BYD vehicles in Brazil have soared, with a staggering year-on-year growth of 328%, reaching 76,700 unitsThe sales momentum has accelerated, with monthly deliveries surpassing 10,000 units in December 2024, quite the leap compared to the 7,000 to 8,000 average monthly sales seen in the latter half of 2024.

BYD has launched seven models in Brazil, with the Song PLUS and Dolphin Mini being particularly popularFurthermore, the company is currently constructing a factory in Brazil, which is expected to have an initial production capacity of around 150,000 vehicles.

This aggressive expansion is mirrored across Southeast Asia, where Morgan Stanley forecasts significant potential

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The monthly shipments from BYD in Southeast Asia have shown robust growth, escalating from 2,000-3,000 vehicles in 2023 to an impressive 5,000-6,000 vehicles in the latter half of 2024. Remarkably, since BYD's debut in Indonesia in early 2024, Indonesia has quickly surpassed Thailand to become BYD's largest market in Southeast Asia.

In response to the distinct needs of Southeast Asian consumers, BYD has plans to introduce plug-in hybrid electric vehicles (PHEVs) to address the limitations associated with battery electric vehicles (BEVs). The Sealion PHEV model has recently launched in Thailand and the Philippines in the third quarter of 2024, with expectations for introductions in other ASEAN markets to follow.

As for Europe, it remains a strategic focus for BYD, despite the rising tide of protectionist policies from the WestThe burgeoning global new energy vehicle industry has created favorable conditions for BYD as it continues to make significant inroads into the European market

Since 2024, the company has exhibited remarkable performance in Europe, with monthly deliveries demonstrating a significant leapIn the first half of 2024, BYD's monthly deliveries in Europe stabilized between 3,000 and 4,000 units, showcasing its competitiveness in a fierce automotive market.

However, the latter half of the year brought an extraordinary surge in these figures, with monthly deliveries skyrocketing to 6,000 to 7,000 units in October and NovemberThis dramatic increase not only highlights the rapid rise in product acceptance among European consumers but also emphasizes BYD's growing brand influence within the region.

A closer examination of BYD's sales data reveals that EU countries play an essential role in the company's European market strategyVehicles sold in EU countries account for over 70% of BYD's total sales in Europe, underscoring the importance of this region in the company’s strategy

Additionally, EU sales contribute several percentage points to BYD’s overall overseas sales, further illustrating Europe’s critical role in BYD's global strategy.

Within the broader European landscape, the UK has emerged as BYD's largest single market during the first eleven months of 2024. The UK’s reception of BYD’s products can be attributed to recent green energy policies that have fostered a conducive environment for the growth of new energy vehicles, combined with the high-quality and technologically advanced nature of BYD's portfolio which aligns with consumer demands.

Despite the successes, BYD's journey in Europe is not without its challengesThe company faces the pressing issue of rising tariffs, which threaten to inflate the costs associated with selling its products in the European market, potentially squeezing profit margins and impacting market pricing and competitiveness