BYD Urges Chinese Automakers to Collaborate and Embrace Renewal for International Expansion

An Inspirational Message from China's Leading Automaker to Unite the Industry and Forge New Paths

In a stirring display of patriotism, China's top-selling automaker has issued a rallying cry to foster unity within the industry and "revolutionize established norms" of the global market. The powerful message has swiftly gained momentum, sparking enthusiastic responses while also drawing constructive criticism from a competitor.

BYD (002594.SZ) seized the occasion of a recent production milestone to shine a spotlight on a greater purpose: China's ascendancy as a dominant force in global auto manufacturing.

Speaking fervently at the event, BYD's founder and chairman, Wang Chuanfu, shared, "I firmly believe that the moment is ripe for Chinese brands. It is a heartfelt aspiration for the 1.4 billion Chinese individuals to witness the ascent of a Chinese brand on the global stage."

The impassioned appeal from BYD, a formidable contender to Tesla in the international electric vehicle sales race, has garnered widespread acclaim. This initiative underscores the spirited competition among China's automakers on domestic turf and their vigorous pursuit of international expansion.

Within the Chinese automobile landscape, a fierce pricing rivalry ignited by Tesla's actions in January continues to rage without abating. Additionally, these manufacturers are all vying for supremacy in global markets, where they encounter consumer hesitancy and occasional regulatory hurdles.

Presenting a captivating video during the event, BYD showcased the lineage from the inception of state-owned FAW Group in 1956 to the emergence of contemporary commercial EV startups such as Xpeng(9868.HK), Nio (9866.HK), and Li Auto (2015.HK) over the past decade. Through historical footage, sweeping landscapes, and glimpses of vehicles being prepared for export, the video elucidates the diverse yet convergent journey of these companies. The narrator declares, "While our stories may vary, our trajectory aligns," and underscores, especially concerning international markets, "No distinctions separate 'you' from 'me'."

The video culminates in a call to action for China's automakers to "shatter obsolete paradigms and establish novel, world-class brands," rallying under the banner, "Chinese Autos".

"ELEVATE TO THE CHALLENGE OF COMPETITION"

In a remarkable turn, the video went viral across Chinese social media platforms. Competing automakers took to these platforms to express their admiration. William Li, CEO of Nio, enthused on Weibo, "China's auto industry fills me with pride! We should glean inspiration from BYD's accomplishments."

Li Xiang, CEO of Li Auto, echoed the sentiment by reposting the BYD video and stating, "A salute to BYD! Let's applaud every participant in this new era of clean energy!"

However, some industry players voiced concerns that the message could heighten regulatory risks for Chinese brands overseas, particularly in Europe, where Chinese EV exports might face anti-dumping scrutiny.

Responding to BYD's proclamation, a senior executive from China's Great Wall Motor (601633.SS) countered that Chinese automakers should wholeheartedly embrace the "challenges of competition".

"At this crucial juncture, can Chinese automakers truly stand united?" queried Wang Yuanli, Chief Technology Officer of Great Wall Motor, via his Weibo account. He furthered, "If we speak of unity yet carry lingering resentments, it's perhaps wiser to engage in the competition outright."

Wang later clarified that he had borrowed this perspective from a senior editor at China's Auto Business Review.

In a separate incident, the industry consortium representing China's automakers retracted an agreement in July to eschew "irregular pricing" negotiated among 16 carmakers, including BYD. The China Association of Auto Manufacturers acknowledged that this pact had inadvertently contravened China's antitrust legislation.

In May, Great Wall made headlines by reporting BYD to Chinese regulators, asserting that two high-selling hybrid models failed to meet emissions standards. BYD vehemently contested these allegations and expressed readiness to pursue legal remedies.

BYD's prominence in China's new-energy market, encompassing plug-in hybrids and electric vehicles, has surged to a 37% market share in the initial seven months, up from the previous year's 29%. Impressively, it has even surpassed the enduring sales dominance of Volkswagen brand (VOWG_p.DE) in China's auto market.

Source : Reuters (Reporting by Zhang Yan and Brenda Goh)