BYD says shift to electric vehicles moving “much faster” than expected

The electrification of the automotive industry is progressing faster than expected, according to Wang Chuanfu, the chairman of Chinese automaker BYD, who told investors this week that the automaker with the most resources, healthiest supply chain, and product advantages will win the larger market.

The Chinese EV manufacturer, which is backed by US investor Warren Buffett, held its annual general meeting on Wednesday with what was reported to be its largest level of shareholder attendance in recent years.

BYD’s chairman Wang Chuanfu told investors in attendance that the overall process of electrification is moving faster the car maker had projected – likely why the company halted production of all traditional internal combustion engine (ICE) vehicles in March so as to shift its focus entirely towards EVs.

“How big we can do depends on how much space the market can give,” said Chuanfu, according to national Chinese financial newspaper Securities Times.

“We feel that the process of electrification is accelerating, much faster than we imagined. Whoever has more resources, healthy supply chain and product advantages can win more market.”

Demand for EVs in China allowed BYD to hit EV sales of 100,000 for the first time in March, which has remained stable above 100,000 ever since, with cumulative sales over the first five months of the year exceeding 500,000 units – a year-on-year increase of 348%.

BYD is unsurprisingly looking to make headway in expanding overseas. Chuanfu said the company was under great pressure to develop markets overseas but was running up against scarce resources to do so.

But Wang Chuanfu’s comments come at the same time as BYD was ranked as the world’s third most valuable automaker according to market cap, according to CompaniesMarketCap statistics. BYD now boasts a market capitalisation of over $US128 billion, as of June 8, and is the only Chinese carmaker to place amongst the top 10 in the rankings.