BYD’s executive says geopolitics biggest challenge to expansion

BYD, the Chinese automaker, has set its sights on becoming the world's largest car manufacturer within the next five years, according to its executive vice-president, Stella Li. However, the number one hurdle to this ambitious expansion goal appears to be geopolitics, Li stated at the Milken Institute Asia Summit in Singapore. She explained that the lack of certainty and visibility in international business makes it challenging for BYD to invest with confidence.

Currently, BYD has decided not to sell passenger cars in the United States, despite having a long presence there, due to the complications and uncertainties surrounding the market. Li emphasized that the company seeks clarity and stability before venturing into new territories. Furthermore, BYD has no plans to collaborate with other Chinese firms, considering itself a leader in various sectors, including storage and solar panels.

The pursuit of top talent in China has also proven difficult for BYD, prompting the company to explore the use of industrial robots in the future. Li noted that BYD's stock on the Hong Kong exchange is significantly undervalued compared to US companies, despite the fact that BYD is an engineering firm rather than a car manufacturer alone. Additionally, BYD continues to partner with Nvidia for its chip requirements, which Li deemed a very strong relationship.