BYD Targets Toyota’s Scale with Bold Global Expansion Plans

BYD expects to surpass Toyota in profit per vehicle as it doubles exports and enters new markets. Learn how the EV giant is reshaping the global auto industry.

China’s EV powerhouse BYD has set its sights on Toyota, and it’s not just posturing. After racking up a record 777.1 billion yuan (around $107 billion) in revenue for 2024 and seeing its new energy vehicle (NEV) sales soar by 41%, BYD believes it’s only getting started.

CEO Wang Chuanfu is confident that once BYD matches Toyota’s output volume, it will earn more per vehicle. The company’s vertical integration — manufacturing nearly every vehicle component in-house — allows it to maintain low costs even for budget models like the Seagull, priced under $10,000 in China.

In 2024, Toyota retained the global sales crown with 10.8 million units, while BYD sold 4.27 million NEVs. However, BYD’s international momentum is gaining speed: the company exported 417,204 vehicles last year and aims to more than double that figure to over 800,000 in 2025. Notably, BYD outsold Toyota in EV sales in Japan for the first time.

The company is expanding into key markets such as Latin America, Southeast Asia, and the UK — regions more receptive to Chinese brands. To strengthen its international footprint and sidestep import tariffs, BYD is building plants in Brazil, Hungary, Turkey, and Indonesia, with a third European facility under consideration, possibly in Germany.

BYD isn’t stopping at affordable EVs. It’s moving upmarket with luxury offerings like the Yangwang U8 SUV, Han EV sedans, and the new Sealion 07. Meanwhile, the automaker is pushing forward with ultra-fast charging, smart driving systems, and next-gen battery platforms.

In terms of profitability, BYD reported a 22.3% gross margin in its automotive segment for 2024. Toyota’s comparable margin is not publicly disclosed. Analysts remain cautious, but with BYD’s rapid global expansion and deep investment in innovation, the company may be on track to not only catch up to Toyota but potentially surpass it in profitability in the coming years.

Source: electrek.co