BYD seeks to emulate Tesla by sharpening its EV brand image
BYD Co. aims to improve its EV brand image after Tesla Motors Inc. attracted 325,000 preorders for its new Model 3 -- a sign of the importance of Tesla's star appeal.
The Chinese automaker will focus on branding in the next two to three years so that there's better recognition of the company's technological leadership, said Stella Li, BYD's senior vice president.
The Shenzhen, China-based company is perhaps best known globally for the investment by Warren Buffett's Berkshire Hathaway Inc. in 2008.
"We don't have the ability now to sell tens of thousands of cars before producing a single one," Li said in an interview in Beijing. "The day we can do that will be the day our brand is established."
Chinese carmakers, like the Korean and Japanese before them, are struggling to improve their image and move beyond a reputation of making cheap, utilitarian vehicles that imitate more established competitors.
For BYD, a mass-market image hampers the company's ability to charge a premium and differentiate its brand.
As part of its brand building, BYD held a gathering for fans in Beijing on Monday to unveil the next model named after Chinese dynasties. The company currently produces the Qin, Tang and Song models, named after three imperial dynasties.
Such carnival-like events are popular with companies such as Alibaba Group Holding and Baidu Inc.
Unlike Tesla, BYD also produces gasoline-powered vehicles as well as electric buses and batteries for EVs and consumer electronics.
BYD sells electric buses in the United States, but not passenger vehicles, while Tesla exports its U.S.-made Model S to China. Tesla has said it is seeking a Chinese manufacturing partner to avoid customs taxes.
Li said BYD plans to increase the production capacity of its U.S. electric bus plant to 1,000 buses a year -- up from its current capacity of 300 -- as part of its plan to win 12 percent of North American sales.
Li also said BYD aims "to build a company that can last a hundred years."
"Wang Chuanfu is a marathoner, while Elon Musk is a 100-meter sprinter," Li said, referring to the founders of BYD and Tesla. "A long-distance runner and a sprinter have different abilities and strengths."
The Shenzhen, China-based company is perhaps best known globally for the investment by Warren Buffett's Berkshire Hathaway Inc. in 2008.
"We don't have the ability now to sell tens of thousands of cars before producing a single one," Li said in an interview in Beijing. "The day we can do that will be the day our brand is established."
Chinese carmakers, like the Korean and Japanese before them, are struggling to improve their image and move beyond a reputation of making cheap, utilitarian vehicles that imitate more established competitors.
For BYD, a mass-market image hampers the company's ability to charge a premium and differentiate its brand.
As part of its brand building, BYD held a gathering for fans in Beijing on Monday to unveil the next model named after Chinese dynasties. The company currently produces the Qin, Tang and Song models, named after three imperial dynasties.
Such carnival-like events are popular with companies such as Alibaba Group Holding and Baidu Inc.
Unlike Tesla, BYD also produces gasoline-powered vehicles as well as electric buses and batteries for EVs and consumer electronics.
BYD sells electric buses in the United States, but not passenger vehicles, while Tesla exports its U.S.-made Model S to China. Tesla has said it is seeking a Chinese manufacturing partner to avoid customs taxes.
Li said BYD plans to increase the production capacity of its U.S. electric bus plant to 1,000 buses a year -- up from its current capacity of 300 -- as part of its plan to win 12 percent of North American sales.
Li also said BYD aims "to build a company that can last a hundred years."
"Wang Chuanfu is a marathoner, while Elon Musk is a 100-meter sprinter," Li said, referring to the founders of BYD and Tesla. "A long-distance runner and a sprinter have different abilities and strengths."
