Chinese company BYD has put off constructing an electric vehicle (EV) factory in Vietnam, announced by a high-ranking official of the industrial park where the planned facility's location at a meeting of shareholders on Thursday.
In May, the Vietnamese government announced that BYD would build an electric car facility in Phu Tho. BYD manufactures Apple tablets in this province.
The vice chairman of Gelex Group, which manages the industrial park, Luong Thanh Tung, said BYD postponed development due to strategic concerns and the electric car industry downturn. Tung told the shareholders conference in Hanoi that Gelex has given 100 hectares (250 acres) of commercial property at the Phu Ha industrial park for the EV facility. Due to delays, both parties are actively pursuing a project start date.
Later on, according to the report, Gelex said that BYD had not issued a formal announcement about its Vietnam EV manufacturing facility.
The delay of BYD's Vietnam EV factory construction comes amid concerns of a worldwide EV industry downturn this year owing to governmental subsidy cuts and declining demand. TechTimes previously reported that Tesla, Ford, and GM announced reduction in EV production.
After BYD Company CEO Wang Chuanfu's May visit to Vietnam, the Vietnamese government announced the firm's investment ambitions. However, it did not identify the project's launch date or investment magnitude.
BYD is continuing its EV manufacturing in other nations while postponing its Vietnam ambitions. The business is building an EV factory in Thailand and plans to build one in Indonesia.
(Photo : LILLIAN SUWANRUMPHA/AFP via Getty Images)
A BYD Sealion car by Chinese electric vehicle (EV) manufacturer BYD Auto is seen at the Bangkok International Motor Show in Nonthaburi on March 27, 2024.
BYD Dominates the Global EV Market, Overtakes Tesla
CNN reported that BYD, with headquarters in Shenzen, posted an 80% profit increase in its latest annual profits, its first since overtaking Tesla as the world's top electric vehicle seller.
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The EV company reported an almost quadrupling of net profit to 30 billion yuan ($4.2 billion) from 16.6 billion in 2022 on Tuesday. BYD said it faced a "complex external environment," including worldwide inflationary pressures and major country recessions, but it managed to overcome such challenges.
BYD surpassed Tesla as the top electric vehicle seller in Q4 2023. It outperformed the US EV manufacturer: BYD sold 525,409 battery EVs compared to Tesla's 484,507.
For most buyers, BYD's more affordable electric cars are more appealing compared to Tesla's products. The entry-level electric vehicle in China costs over $10,000, whereas Tesla's Model 3 costs $39,000. This pricing strategy has helped BYD attract diverse customers and increase sales and profits.
Getting Ready For the US Market
The Chinese EV maker made a record of 3.02 million EV sales worldwide in 2023, up 62% from 2022. Among them are 1.44 million plug-in hybrids-an EV type that Tesla does not sell, per CNBC.
Michael Dunne, CEO of Dunne Insights, said that amid its robust performance, BYD is "definitely preparing for the US market, waiting for the right timing." He added that the Chinese EV manufacturer expect prosperous markets in the US and Europe that it must enter and prevail to achieve global success.
BYD recently disclosed plans to build a European manufacturing facility in Hungary and it is scouting for a possible EV factory site in Mexico.
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