BYD Profits Spurred by Sales of Gas Vehicles, But Could Deal With Tesla Secure BYD’s Future as an Electric Vehicle Leader

4 years ago by Eric Loveday 9

BYD e6 - Up To 186 Miles Of Range

BYD e6 – Up To 186 Miles Of Range

BYD is in the “midst of a revival thanks to traditional gasoline-fueled vehicles,” according to Reuters.

e6 Mostly Only a Fleet Offering

e6 Mostly Only a Fleet Offering

Reuters further reports that BYD’s “sales jumped 25 percent to more than 250,000 units in the first six months of this year, outpacing China’s overall auto market growth rate of 11 percent. The vast majority of those were gasoline-powered, not electric.”

But electric is BYD’s future.

As even Reuters says, profits from sales of these gas-burning automobiles is being funneled into research and development of electric vehicles.

BYD’s electric vehicle technology, especially its battery tech, is considered rather strong or “mature” in analyst speak and additional funding will advance it even further.

Tesla Supply Deal Could Secure BYD's EV-Related Future

Tesla Supply Deal Could Secure BYD’s EV-Related Future

BYD’s grand dreams are much like that of Tesla.  Eventually, BYD hopes to completely phase out gas-burning autos in favor of plug-in vehicles.  That may be a decade or more away for BYD, but there are signs its coming.

The latest reported agreement between BYD and Tesla confirms this.  Tesla, in its search to secure more battery cells, added Samsung SDI to its supplier list.  Buried in that announcement was a tiny mention of Tesla adding BYD into the cell supplier mix.

If a Tesla-BYD deal turns out to be true, then the Chinese automaker will get additional funds from Tesla and will gain some knowledge into how to do battery packaging, cooling, electronics, etc. right.

At this time, we’re not sure how big the deal between Tesla and BYD might turn out to be, but when that Gen III Tesla arrives, Tesla will no doubt need an out-of-this-world supply of lithium-ion cells.  BYD could presumably supply most or all of it, provided the Chinese automaker starts its switch to electric-only technology right now.

Source: Reuters

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9 responses to "BYD Profits Spurred by Sales of Gas Vehicles, But Could Deal With Tesla Secure BYD’s Future as an Electric Vehicle Leader"

  1. Spec says:

    I think part of BYD’s problem with EVs is Chinese attitudes toward EVs. There was a recent story about the various consumer views toward EVs and the Chinese were among the most hostile audiences toward EVs. Perhaps it is from bad experiences with lead-acid based electric bicycles? The Chinese were just not at all favorably disposed toward EVs.

    1. GeorgeS says:

      Spec,
      I’d think their using of electric bicycles would make them MORE prone to like EVs but go figure.

      I finally had to replace my Li bat on my e-bike so I bot it straight from China….at about half the cost. I sure don’t want Chinese batts in my Volt though.

      I guess I can see Teslas thinking though. If you need cheap batteries then there’s only one place to go…China. Unfortunately

  2. Jay Cole says:

    This (like all BYD stories) needs more BYD dancers to “aid in success” of BYD’s future:

    1. GeorgeS says:

      I agree. Bring on those hot Chinese chicks.

  3. io says:

    “If a Tesla-BYD deal turns out to be true, then [BYD] will gain some knowledge into how to do cells right.”

    No, Eric, seriously?? Tesla, which has never manufactured a single cell and isn’t in that business at all, will somehow teach BYD, a 100’000+employee company which has been making batteries for almost 2 decades, how to do it?

    1. Priusmaniac says:

      Perhaps he was meaning how to combine them right in a package and optimize their use in a car. Something Tesla has indeed gained good knowledge off.

      1. Eric Loveday says:

        Yeah…Something along those lines was what I meant…Thanks for pointing out the flaw and for setting things straight.

  4. jeff says:

    smart move by Tesla. I think of how Mits was able to get the outlander PHEV costs subsidized by it’s battery supplier.

    I think it’s a risky business to make something so fragile and warranty it to a manufacturer. Good luck BYD.

  5. David Stone says:

    I don’t understand the second sentence:
    “Tesla will no doubt need an out-of-this-world supply of lithium-ion cells. BYD could presumably supply most or all of it, provided the Chinese automaker starts its switch to electric-only technology right now.”

    Why would BYD have to switch to electric-only technology – for their cars, I assume – in order to be able to supply batteries?
    Both are seperate business areas, battery product started before car production, and Tesla’s other suppliers manage to supply them without building evs.