BYD is moving into Southeast Asia. The Chinese company was Singapore’s second best-selling automobile brand, behind Toyota, in the primary half of the yr. In neighboring Malaysia, BYD is the preferred EV brand and among the many top 10 hottest automobile brands overall.
But in accordance with the Chinese brand’s regional distributor, BYD’s success is resulting from its ability to adapt quickly to latest markets, with one change particularly making the difference.
“You were one in every of the primary Chinese brands to [offer] Right-hand drive for electric vehicles,” says Jeffrey Gan, Managing Director of Sime Darby Motors for Southeast Asia. Sime Darby Motors, the automotive division of the Malaysian conglomerate, has been BYD’s sales partner in Singapore since 2019.
Chinese cars drive on the best side of the road and due to this fact have the steering wheel on the left, making them “left-hand drive” models. However, in several overseas markets – Japan, Australia, Malaysia, Singapore and the Chinese city of Hong Kong – it’s the opposite way round: the cars drive on the left side of the road and due to this fact have the steering wheel on the best, making them “right-hand drive” models.
Although right-hand drive markets are smaller than left-hand drive markets, they’re more likely to be the primary targets for a Chinese electric automobile brand attempting global expansion.
It took some time for Sime Darby’s relationship with BYD to bear fruit. “When we started in 2019 [in Singapore] “The product offering was inadequate,” says Gan. Only one automobile model was available: the BYD e6, a compact multi-purpose vehicle.
That modified two years ago when BYD decided to “go aggressively outside China,” Gan said. BYD’s orders increased after the Chinese electric automobile brand introduced the Atto 3, Seal and Dolphin to international markets.
What is Sime Darby?
Sime Darby, No. 25 on the Assets Southeast Asia 500 is one in every of Malaysia’s largest conglomerates. Sime Darby’s engine business is present in ten markets within the Asia Pacific region, including China. The company represents several continental luxury automobile brands in China and can also be one in every of the world’s largest BMW dealers.
Sime Darby built its first automobile in 1982 and manufactured BMW and Land Rover models in Selangor. Since then, the corporate has worked mainly on internal combustion engine vehicles, but in recent times it has began to explore electric vehicles.
In addition to being BYD’s distributor in Singapore, Sime Darby was also appointed BYD’s distributor in Malaysia when the Chinese automaker desired to expand into that market.
As a licensed distributor, Sime Darby is accountable for providing the vehicles, promoting brand growth and appointing dealers, in accordance with Gan.
One way Sime Darby tried to advertise the BYD brand in Malaysia was by hosting a significant launch event in December 2022. BYD was “not that big” back then in comparison with the corporate we all know today, Gan explains, but Sime Darby held a significant launch with none pre-orders. He says the launch resulted in 800 vehicles being sold in three days.
In addition to the partnership with BYD, Sime Darby also works with other Chinese automobile brands. Collaboration with Chery will construct cars in Malaysia and has agreed distribute Cars from the startup Xpeng in Hong Kong – one other right-hand drive market.
Sime Darby Engine Department generated 31.6 billion Malaysian ringgit ($7.4 billion) within the last fiscal yr ended June 30, a 16% increase from the previous yr. Almost half of its revenue comes from mainland China, Hong Kong and Taiwan. The company also has said New locations similar to BYD in Malaysia contributed to the rise in sales.
Chinese electric vehicles are spreading in Southeast Asia
BYD will not be the one Chinese electric vehicle manufacturer seeking to gain a foothold in Southeast Asia. Geely, Chery, Great Wall Motors and Xpeng are also pushing into the market.
Analysts describe Southeast Asia because the “most important” overseas marketplace for Chinese automakers, as Western markets similar to the US and Europe impose tariffs on imported Chinese cars.
Gan expects electric vehicles to be a growth marketplace for Sime Darby as consumer confidence in the brand new technology grows. Malaysia is already reporting a forecast year-on-year growth in total electric vehicle sales of virtually 100%, he explains.
“We ended 2023 with 10,000 electric vehicles sold. In July 2024, we have already sold 12,000 units, which means that at the half-year mark, we have already sold more than we did in 2023,” says Gan. Sime Darby holds a 40% market share within the number of electrical vehicles sold in Malaysia this yr.
