BYD Group: revenue 2016-2023, by customer locations

In 2023, Greater China region accounted for more than 73 percent of BYD Group’s total revenue, while the overseas market contributed 26.6 percent. While the company grew substantially in the last few years, the domestic market remains the main source of income for the company.

Ambitious expansion plans abroad

China has a highly competitive electric vehicle market with tight margins for most major automakers. Its domestic market is also facing challenges in absorbing the overcapacity of its automakers. As a result, Chinese EV companies, including BYD, have sought to expand internationally through exports. BYD Group has built facilities in a number of locations and contracted with China International Marine Containers (CIMC) to build eight vehicle carriers, the first of which, the Explorer One, has been shipping cars to Europe since early 2024.

Challenges amid fears of unfair competition and subsidies

Due to the Chinese government's preferential policies and allegedly generous subsidies to EV companies, as well as concerns that cheap Chinese EVs will undermine the local automotive industry, the United States and Europe, key markets targeted by Chinese companies, have vowed to take policy measures, including punitive tariffs, against Chinese EVs. With a slowing economy and structural oversupply in the domestic market, the outlook for China's EV industry remains uncertain.