BYD’s growth from a battery-maker in Shenzhen to the world’s largest EV maker is the result of a convergence of strategy, scale, and policy. Industry analysts note BYD’s aggressive expansion has been enabled by its tech leadership and vertically integrated production model, along with strong domestic policy support. 

In practice, BYD’s deep in-house battery expertise and government backing for Chinese EVs gave it a cost advantage over legacy automakers.

The result has been exponential growth: BYD sold 3.02 million new-energy vehicles in 2023 (a 62% increase from 2022) and approximately 4.27 million in 2024, according to data from global car rental platform Road Genius. 

These volumes gave BYD roughly 22% of global EV sales in 2023. Against a backdrop of surging EV demand worldwide, BYD’s scale and structure made its ascent seem inevitable.

BYD’s ascent has also been driven by what it brought to the EV sector. The company was an early leader in plug-in hybrids (PHEVs) and advanced batteries. At least one market report notes that China’s automakers, led by BYD, are now global leaders in plug-in hybrid vehicles, thanks to models like the Qin and Tang. 

BYD’s push for innovation has included ultra-fast charging technology and large battery installations. It has introduced a wide“brand matrix of models, from the economy Ocean line to the luxury Yangwang SUVs. The Shenzhen firm even invested in cargo ships and overseas parts depots to support exports. 

BYD’s contribution is also evident in its ability to drive down costs: its aggressive cost-cutting across the value chain, combined with its large domestic scale, has allowed it to offer EVs at lower prices. This strategy helped spur broader industry change by forcing many rivals to accelerate their own EV and battery programs.

Globally, BYD’s impact has reshaped the electric-car market. In 2023, it led global new-energy vehicle sales for the second consecutive year, selling over 3.02 million units worldwide. Chinese EV firms as a group now dominate the industry: six of the world’s top ten EV sellers are Chinese, and Chinese brands account for an estimated 70% of global EV production. 

BYD in particular has become an export juggernaut. It now sells vehicles in more than 80 countries, spanning Europe, Southeast Asia, and Latin America. In many markets, BYD is outselling established Western or local brands. For example, in mid-2024, BYD’s European sales had already surpassed those of Fiat, Seat, and others in several countries. 

Analysts note that Chinese EVs, led by BYD, are capturing emerging markets: they took 85% of EV sales in Brazil and Thailand in 2024. This wave of Chinese exports has been described as ‘exporting capability’ as much as cars. 

Robert Khachatryan, CEO of Freight Right Global Logistics, a global logistics firm, put it vividly: “Chinese EV companies are not just exporting products… They’re exporting capability.” 

Effects on EV industry policy

The effect has been keenly felt in policy arenas. In Europe, BYD’s success and price competitiveness prompted new trade measures. The EU imposed tariffs on Chinese-made EVs in 2024 amid concerns over subsidies, affecting BYD’s direct exports.

BYD quickly adapted by planning local production: it is building a factory in Hungary (and one in Turkey) and aims to have all its European-sold EVs produced locally by 2028, as per a Reuters report. 

Clearly, regulators and competitors alike are adjusting to its global strategy. Notably, BYD has focused on plug-in hybrids in Europe to circumvent certain tariffs and meet local demand. 

In the United States, policy has had an opposite effect. The US Inflation Reduction Act (IRA) of 2022 offers tax credits only to EVs made or assembled in North America with approved supply chains. That effectively excluded BYD’s Chinese-built cars from the $7,500 federal rebate. 

Reports suggest that BYD’s U.S. launch plans have been put on hold due to this ‘$7,500 disadvantage’ in the market. BYD thus remains focused on buses and trucks in the U.S., where trade barriers are less stringent. 

Still, BYD’s global momentum has added pressure on policymakers. In effect, governments now juggle two goals: encouraging EV adoption (where BYD provides affordable options) and protecting domestic industry (where BYD’s success can prompt tariffs and stricter local content rules). Either way, BYD’s rise is shaping automotive policy.

How BYD can influence Bangladesh’s EV industry

Bangladesh is only beginning its EV journey, and BYD’s entry could be a turning point. Until recently, Bangladesh lagged in EV adoption due to high taxes and unclear regulations. EV registration was restricted for years, and fully built EVs were hit by steep import duties. 

A new electric vehicle policy (Electric Motor Vehicle Registration and Operation Guideline 2023) aims to change that by targeting 30% EVs by 2030 with tax incentives.

For example, gasoline cars up to 1,600cc face about 125% import tax, whereas a comparable EV is taxed roughly 89%. Since late 2023, Bangladesh has allowed more EV imports, and a handful of luxury EVs from brands like Audi and BMW have arrived.

In this emerging market, BYD is positioning itself aggressively. In early 2024, BYD’s local distributor announced the launch of the Seal sedan as the first model for the Bangladeshi market.

BYD’s global track record, characterized by a rapid share increase when entering new markets, suggests it could become a leading brand in Bangladesh. 

A chief reason is price. BYD’s volume advantage lets it undercut many competitors. Bangladesh’s EV policy benefits, i.e., lower taxes and planned charging infrastructure, could make BYD models competitive. The local distributor is also training technicians and setting up service centers, which will help grow the industry ecosystem.

Challenges

Bangladesh’s EV infrastructure is sparse. Public fast-charging stations are few, and the electricity supply can be unreliable. Early EV users have faced registration headaches because local rules still classify vehicles by engine size, a mismatch for electric motors. 

High taxes on fully built cars (beyond the reduced 89%) and a lack of local assembly also keep prices high for now. 

Overcoming these obstacles will require continued policy support and investment. The country is discussing EV charging guidelines and partnerships, and companies are eyeing local assembly plants in the future.

Even so, BYD’s presence could accelerate Bangladesh’s EV transition. Its global experience means it can help build consumer trust, with proven warranty and replacement networks. The economies of scale enjoyed by BYD could eventually spill over: if BYD or its partners invest in local assembly, Bangladesh might see more affordable EVs.