DIGIVESTASI - Global competition for electric vehicles is intensifying, especially between the United States and China. Tesla already has an established reputation in the global electric vehicle market, but it faces pressure from Chinese automaker BYD when expanding overseas.

The Shenzhen-based company has successfully tested and sold its products in many countries. On average, it takes just one year after market launch. BYD is currently looking to boost overseas sales by moving production to regions that are considered "friendlier". That's because BYD is facing some sales constraints in the US. 

BYD is currently building factories in Thailand, Brazil, Indonesia, Hungary, and Uzbekistan. 
"They are targeting countries that do not have a strong domestic auto industry," said CLSA research analyst Xiao Feng, reported by CNBC International, Wednesday (March 20, 2019). "These countries are less likely to face political or political obstacles. policy point of view." ). 2024.

Mr. Feng pointed out that electric vehicle development in the United States needs to take the same approach as BYD. The Biden administration last month said it was launching an investigation into whether Chinese-made cars pose a risk to national security and discussed the possibility of regulating them. The United States is working to support the spread of electric vehicles in the country, but the sales penetration rate is still far below that of China.

From Thailand to Indonesia

BYD is moving fast, starting in Thailand, with its first factory outside of China expected to be operational by the end of this year.

According to MarkLines, the company overtook Toyota in January to become the best-selling passenger car in Thailand despite no sales last year. Once the Thai plant is operational, it is likely that the company will supply its products to other Southeast Asian regions, including Indonesia. EY expects the region's electric vehicle market to grow rapidly in the next decade, reaching annual sales of at least $80 billion. Meanwhile, BYD has established itself as the top-selling electric vehicle brand in Southeast Asia, capturing a third of the market last year, according to data from Counterpoint Research.

BYD's advantage over Tesla

BYD sold 70,000 electric cars in Southeast Asia last year, giving it a 35% market share ahead of rivals VinFast and Tesla. One of BYD's advantages over Tesla is its wide range of mass-market products and combination of hybrid and battery-powered vehicles. Tesla only produces more expensive cars and only uses batteries.

The potential of hybrid vehicles is still considered beneficial for emerging markets where battery charging infrastructure is still limited. Southeast Asia is expected to remain BYD's strongest overseas market in the short term, as BYD works toward its goal of doubling car exports to 500,000 vehicles by 2024 compared to last year.

"The electric vehicle market in Southeast Asia is still in its infancy and needs to develop consumer habits," said Alvin Liu, automotive analyst at Canalys. "Cost efficiency is crucial as BYD's Atto 3 and Dolphin models are sold at very competitive prices in the region," he added.

BYD Indonesia factory

Deputy Coordinating Minister for Investment and Mining Septian Hario Seto from the Coordinating Ministry of Maritime Affairs and Fisheries confirmed that BYD, an electric vehicle giant from China, will build a factory in Indonesia. This can be seen from the repeated visits of Luhut Binsar Pandjaitan's men to China recently. The purpose of these visits is to attract foreign investment to the country. Mr. Seto explained that the topic of the meeting with BYD was to discuss the completion of factory investment in Indonesia. Even so, he was reluctant to reveal the details of the factory location.

God willing, next month they will announce the location of the factory. The target is that the factory will be ready for commercial production in early 2026, Seto said in a written statement quoted on Saturday, March 16.

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