BYD Seen Rapidly Expanding in SEA Markets

BYD, China's electric vehicle giant, has been on a tear in Southeast Asia, edging out rivals such as Tesla to capture more than a quarter of the region's EV sales.

BYD's early success has been built on a pattern of distribution partnerships with large, local conglomerates, which has allowed the carmaker to expand reach, test consumer preferences, and navigate complex government regulations in the region, according to officials from three partners and analysts.

This partnership model, similar to that pursued by Japanese automakers decades ago in some Southeast Asian countries, assists BYD in rapidly increasing market share and contrasts with Tesla's go-it-alone distribution - though it comes at a cost.

"At the moment, BYD's primary focus is on brand proliferation rather than profit margin optimisation," Soumen Mandal, a senior analyst at Counterpoint Research, said.

"By providing more lucrative profit margins to local dealers, BYD can cultivate trust and loyalty, paving the way for further expansion."

According to Counterpoint, the Chinese automaker sold more than 26% of all cars in Southeast Asia's small but rapidly growing EV market in the second quarter of 2023, with its Atto 3 model, which starts at $30,000 in Thailand, being the regional bestseller. In Thailand, Tesla's most basic Model 3 starts at around $57,500.