BYD, the Chinese electric vehicle giant, is making significant headway in Southeast Asian markets, particularly in Singapore and Malaysia. This success is largely attributed to the company’s swift adaptation to local requirements, according to Fortune.

The Right-Hand Drive Advantage

Jeffrey Gan, Managing Director for Southeast Asia at Sime Darby Motors, BYD’s distributor in the region, points out a crucial factor in BYD’s success:

“They were one of the first Chinese brands that could [offer] right-hand drive for electric vehicles.”

This adaptation has given BYD a competitive edge in markets like Singapore, Malaysia, and potentially other right-hand drive countries like Japan and Australia.

Rapid Growth in Singapore and Malaysia

In Singapore, BYD has climbed to become the second best-selling car brand overall in the first half of the year, trailing only Toyota. Meanwhile, in Malaysia, BYD has secured its position as the most popular EV brand and ranks among the top 10 car brands across all categories.

The introduction of new models like the Atto 3, Seal, and Dolphin in international markets has significantly boosted BYD’s orders.

Gan notes, “When we started in 2019 [in Singapore] there were not sufficient offerings in terms of their products.”

However, this changed dramatically two years ago when BYD decided to “get aggressive outside of China.”

Sime Darby’s Role in BYD’s Expansion

Sime Darby, a Malaysian conglomerate ranked 25th on the Fortune Southeast Asia 500, has played a crucial role in BYD’s expansion. As BYD’s distributor in both Singapore and Malaysia, Sime Darby has been instrumental in bringing the cars to market, growing the brand, and appointing dealerships.

The company’s efforts have paid off. In Malaysia, a grand launch event in December 2022 resulted in 800 vehicles sold in just three days. Gan explains, “BYD then was ‘not that big’ compared to the company we know today, but Sime Darby went ahead with a grand launch without any pre-orders lined up.”

The Broader EV Landscape in Southeast Asia

BYD isn’t alone in targeting Southeast Asia. Other Chinese EV manufacturers like Geely, Chery, Great Wall Motors, and Xpeng are also entering the market. Analysts describe Southeast Asia as the “most important” overseas market for Chinese carmakers, especially as Western markets impose tariffs on imported Chinese cars.

The EV market in Southeast Asia is showing promising growth. Gan reports that Malaysia is experiencing close to 100% year-on-year growth in total EV sales. “We closed 2023 with 10,000 EVs sold. By July 2024, we are already at 12,000 units sold, meaning at the half-year mark we’ve already outsold 2023,” he states.

EVXL’s Take

BYD’s success in Southeast Asia highlights the importance of adaptability in the global EV market. By quickly offering right-hand drive models, BYD has tapped into a significant market segment often overlooked by other manufacturers. This strategy aligns with the growing trend of Chinese EV makers expanding globally, as we’ve seen with other brands like NIO and Xpeng. As the EV market continues to evolve, it’ll be interesting to see how other manufacturers respond to BYD’s success in these right-hand drive markets.

What are your thoughts on BYD’s strategy in Southeast Asia? Share your opinions in the comments below.