BYD aims to overtake Toyota within 5 years without US market

BYD sold 4.5 million vehicles last year versus Toyota's 10.5 million, but the Chinese EV maker says it can close the gap within five years — without access to the US market.

"We don't need the US market to achieve that," Stella Li, executive vice president and head of BYD's international operations, told the Financial Times, reinforcing founder Wang Chuanfu's target announced last month.

BYD delivered 557,090 battery-electric vehicles in the second quarter, reclaiming the global EV sales lead from Tesla. Its European market share more than doubled to 2.8 percent in May, pushing it past Ford, Tesla and Nissan. The company sold about 4.5 million vehicles last year across all powertrains, compared with Toyota's 10.5 million.

BYD's US-listed shares rose 3 percent to $10.98 on Tuesday following the comments, though they remain down 29 percent over the past year. Tesla shares gained 25 percent in the same period, while Toyota added 4 percent. The gap in scale is substantial — Toyota's lead is supported by strong US sales and a broad lineup spanning gasoline, hybrid and electric vehicles — but BYD is betting on rapid overseas expansion and charging technology to close it.

Europe, Not America, Drives the Ambition

BYD remains largely excluded from the US passenger-car market because of tariffs and restrictions on Chinese automotive software. Li said the company has no plans to acquire a rival to gain entry, though she remained "open-minded" about buying a premium European brand. Renault reportedly rejected an approach from BYD last year.

With China's domestic auto market caught in a brutal price war that has squeezed margins across the industry, BYD is leaning heavily on overseas growth. Europe is especially attractive because the company can earn higher margins there than in its home market. China's monthly vehicle exports reached a record 1 million units in June, highlighting the broader push by Chinese automakers into global markets.

BYD is also expanding across Southeast Asia and Latin America, building factories in Thailand, Brazil, Hungary and Indonesia to localize production and avoid import tariffs. The company's overseas sales accounted for about 10 percent of total deliveries last year, a share it aims to grow significantly.

Charging Tech and Premium Ambitions

BYD is investing in its own premium brand, Denza, to challenge established German manufacturers such as Mercedes-Benz and BMW. The company recently unveiled the Denza Z electric supercar, priced from £142,900 in the UK, and plans to spend nearly €2 billion installing 3,000 "flash" chargers across Europe by 2027. BYD says the technology can charge compatible Denza models to 70 percent in five minutes — faster than Tesla's Supercharger network.

"Just wait one more year and you'll say we can do this successfully," Li said.

BYD shares listed in Hong Kong rose 0.9 percent on Wednesday. The company's aggressive growth narrative could boost investor confidence in BYD (01211.HK) and related EV supply chain stocks, while the explicit downplaying of US market reliance may reduce perceived geopolitical risk for investors. For Toyota, the threat remains distant but credible — BYD's rapid ascent in Europe and its charging infrastructure bet suggest the five-year timeline, while ambitious, is not without foundation.

This article is for informational purposes only and does not constitute investment advice.