Chinese electric vehicle brand BYD is expected to actively utilize fleet sales, selling cars in bulk at low prices to corporations such as rental car and car-sharing companies to enhance its competitiveness in the domestic market. BYD has targeted the B2B (Business To Business) market in other countries, and collaboration is likely to be easier in the domestic market, where Chinese capital has acquired the top two rental car companies.
According to the industry on the 27th, BYD will officially launch its passenger brand in the domestic market on January 16, 2025. The first models and prices have not been finalized, but it is expected to sequentially launch the small SUV ATTO3, the mid-size sedan SEAL, and the hatchback DOLPHIN. BYD finalized the selection of its official dealer company responsible for domestic distribution and aftersales service on the 17th.
The industry predicts that BYD will target fleet sales, particularly transferring vehicles in bulk to corporations such as rental car services, car-sharing, and used car companies, to increase its presence in the early market of its brand launch. While it will also market to individual customers, factors such as domestic consumer perceptions of Chinese products and price variables could act as entry barriers.
In fact, BYD has focused on fleet sales in the United States, Europe, the Middle East, and Southeast Asia. Recently, BYD decided to supply 100,000 electric vehicles to the U.S. ride-sharing service company Uber. The vehicles supplied to Uber will be utilized in the Middle East, Canada, Australia, and New Zealand. It has also signed a contract to supply 100,000 electric vehicles to Sixt, Germany's largest rental car company, over the course of six years.
In the domestic market, with both rental car companies being acquired by Chinese private equity firms, BYD is expected to strengthen its influence in fleet sales centered around rental cars. Chinese private equity firm Affinity Equity Partners acquired 100% equity in SK Rent-a-Car in August and also purchased a 56.2% stake in Lotte Rental. BYD is reportedly considering entering the market through Lotte Rental and SK Rent-a-Car.
Worldwide, BYD's sales volume is on a rapid rise. This year, it is expected to exceed its annual sales target of 4 million vehicles, overtaking Ford (8th) and Honda (9th) in the U.S. market. As of last month, BYD sold approximately 3.76 million vehicles in the global market this year, and if this trend continues, the annual sales volume could reach 4.25 million vehicles. This represents a 40% increase compared to BYD's annual sales volume last year (3,024,417 vehicles).