Photo by TOBIAS SCHWARZ / AFP
BYD's chairman announced the company's goal of becoming the world's largest automaker within five years, highlighting the growth of export markets and battery technology as key drivers.
On June 10, 2659, at 11.00:5 AM, Reuters reported that Wang Quanfu, chairman of BYD, announced a major goal at the annual shareholders' meeting, stating that BYD has the potential to become the world's largest automaker within the next five years. He also attempted to reassure investors after the company's share price had fallen sharply over the past year.
BYD, which plans to sell 4.6 million vehicles by 2025 and rank sixth globally, is facing challenges in recovering its growth after sales in the Chinese market were impacted by fierce price competition from other domestic automakers. This has resulted in its Hong Kong-listed shares plummeting more than 45% from their year-over-year high, while shares on the Shenzhen market have fallen 33%.
At a shareholder meeting held at the company's headquarters in Shenzhen, attended by nearly 1,000 shareholders, Wang Quanfu stated that one of the most important tasks this year is to accelerate the production capacity of the second-generation Blade battery, which is a major bottleneck currently limiting the company's growth.
He stated that BYD aims to become the world's number one automaker in terms of sales volume within five years, believing that growth in exports, along with advances in battery technology and fast charging systems, will be key drivers in both the Chinese and international markets.
However, achieving this goal will not be easy, as BYD still needs to surpass Toyota Motor Corporation, which is projected to sell more than twice as many vehicles by 2025.
Although Toyota continues to dominate the industry, data from the China Passenger Car Association (CPCA) indicates that Toyota's market share overseas is facing pressure, particularly in Southeast Asia and the Middle East, where Chinese automakers are expanding rapidly.
BYD's exports during January-May 2569 increased by 65% compared to the same period of the previous year, with key markets including Brazil, the United Kingdom, and Australia, countries that still have relatively low trade barriers to electric vehicles from China.
However, overseas growth has not been sufficient to offset the weakness in the domestic market, with total vehicle deliveries in the first five months of the year falling by more than 20%.
Despite positive signals from management regarding the company's future, investors remain cautious. On Wednesday morning, BYD shares fell 4.3% on the Hong Kong market, while shares on the Shenzhen market declined 1.6%.
Wang Quanfu's announcement reflects BYD's ambition to transform from the leader of China's electric vehicle market into the world's largest automaker. Amidst fierce competition both domestically and globally, it will be a crucial test of whether the company can convert its technological advantages into global leadership.
Reference: www.reuters.com
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