How China's BYD beat Tesla to become the king of EVs

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How China's BYD beat Tesla to become the king of EVs

Published: 25 Nov. 2024, 17:58 Updated: 28 Nov. 2024, 19:50

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

BYD's EV manufacturing plant in China [BYD KOREA]

SHENZHEN, China — With a series of chassis moving industriously in single file on a conveyor belt, a battery pack that resembles a blade is automatically attached to the underbodies with the goal of making an EV every 58 seconds.

This could be seen as ordinary in any car-manufacturing factory, but there is an ace up this one's sleeve — probably the driving factor behind the company's rise to become the world’s top EV seller: both the vehicle and the battery are developed by one company, BYD.

“Including the battery, the most expensive component in EVs, BYD sources almost all auto parts needed,” said a spokesperson for the automaker during a Korean press tour of its manufacturing facility in Shenzhen, Guangdong Province, in southeastern China on Nov. 19, adding that it is one of the reasons why BYD can offer “the most high-tech vehicles at reasonable prices.”

BYD EVs are getting last-minute inspections for shipment at its manufacturing plant in Shenzhen, Guangdong Province. [BYD KOREA]

The EV facility in Shenzhen is the home of the company's largest EV-making factory with an annual production capacity of around 300,000 units. The EV titan invested over 25 billion yuan in two phases in the factory, where it is also in the process of constructing a battery pack-producing line and EV auto parts line with an additional 6.5 billion yuan.

While the battery-making process is fully automated, in the car assembly facility, four to five workers were mobilized around each chassis in stark contrast to the plants of many other brands, which have reached almost 100 percent automation.

“The automation rate of our assembly line stays at only 25 percent in order to guarantee a high precision rate,” said BYD's spokesperson during the press tour. “With that, our factory boasts a 0 percent defect rate.”

A monitor on the side of the factory shows that the operation rate remains at 98 percent, with the day’s total production goal set at 1,260 units. The tour was around 6 p.m., and 581 units were reported completed, meaning the factory will be up and running all night without pause.

In an effort to maintain quality standards, the assembled EV models then are transferred to the O.K. line, where cars must pass over tens of speed bumps to ensure that all parts or components are installed correctly.

BYD's EV-manufacturing plant in Shenzhen, Guangdong Province, in southeastern China [BYD KOREA]

The cars that get the O.K. then have to undergo a leak test, followed by a five-kilometer (3.1-mile) road test to receive final approval to be shipped out.

BYD, which started out as a phone battery maker, first entered the EV market in 2008 with the world’s first plug-in hybrid model, the F3DM. At the time, Warren Buffett invested $230 million into the Chinese EV maker.

It beat Tesla to become the world’s top EV seller in 2022, 13 years after it rolled out its first pure EV, the e6. In terms of this year’s sales through the end of September, BYD sold 2.61 million cars, more than double Tesla.

BYD's EV manufacturing plant in Shenzhen, Guangdong Province [BYD KOREA]

BYD attributed its rapid success to its abundant and talented workforce. The Chinese brand employs over 900,000 workers all over the world, with some 10 percent, or around 103,000, engineers.

Tens of 10-story apartments are located right next to the factory, housing personnel that work 12-hour shifts in two groups. The average age of the employees is around 30 years old, BYD said.

The company held a ceremony on Nov. 18 to celebrate shipping its 10 millionth EV 30 years after its founding. BYD founder and CEO Wang Chuanfu said he will invest more than 100 billion yuan in research and development for AI and autonomous driving and carry out large-scale recruitment for students majoring in engineering.

BYD is slated to enter Korea’s passenger vehicle market in January. The Atto 3 compact SUV and Seal sedan will likely be the first models to be launched in the local market.

BY SARAH CHEA [[email protected]]