Author: Larry Evans

Over the past few days, I have been scouring through BYD’s 1H Interim Report. Overall, performance was what I expected, if below some projections, but a few notable items stood out.

It may be easy to dismiss initial numbers in emerging markets as being relatively small in quantity and purchasing power. But those markets are developing as the people within them develop. Establishing brand preference and tying the brand to the economic emergence of these countries has an impact that extends far beyond monthly sales rankings. Electric vehicles are the future, and BYD can make their brand most associated with that future. The opportunity exists to establish long-lasting brand preference that can span generations, if BYD can take advantage of it.

The seemingly effortless execution of the green initiatives was perhaps the most impressive part. Environmental impact was being reduced while the experience was made better and more convenient. It didn’t try to attract massive attention and didn’t come off as greenwashing. It just made sense when you thought about it, but you didn’t have to think about it.

While 3000hp+ hypercars setting records can seem pointless to many, the technological development and testing can benefit more practical EVs. Racing can also go a long way toward changing consumer perceptions and building excitement for the transition to electric vehicles.

It's hard to know which way the markets will turn. However, with the declining dollar, it makes sense to pay attention to what's happening globally and stay on top of the accelerating clean technology transition abroad, even if adoption seems to be slowing at home.

Overall, BYD's sales are driven by product. New product is taking over while older product falls back. While Black PR has likely had some temporary effect, strong product tends to overcome it in the long term. Last year, BYD had stronger PHEV product introductions and sales. This year, BEV has had stronger product introductions and sales. It is hard to be sure what next year will bring. More effort might go to product for outside markets, with growth shifting accordingly. But with over 120,000 R&D engineers and more EV intellectual property than anyone, I would bet that the long-term "peak" is a far down the road.