BYD’s executive says geopolitics biggest challenge to expansion

BYD, the Chinese automaker, aims to become the world's largest within five years, according to Stella Li, the company's executive vice-president. At the Milken Institute Asia Summit in Singapore, Li revealed that geopolitics is BYD's primary obstacle in expanding its operations. She explained that the lack of certainty and visibility in international business makes it difficult to invest confidently.

Despite being present in the US for an extended period, BYD has decided to refrain from selling passenger cars in the country for now due to the complexities involved. Li stated that the company is waiting for a clearer picture before making a decision. Furthermore, BYD has no plans to collaborate with other Chinese firms, as it has already established itself as a leader in various sectors, including storage and solar panels.

Hiring qualified personnel in China has also proven challenging for BYD, prompting the company to consider implementing industrial robots in the future. In terms of financial performance, Li expressed optimism about BYD's stock on the Hong Kong exchange, noting that it is significantly undervalued when compared to US companies. This valuation is attributed to the fact that BYD operates as an engineering firm, rather than solely focusing on car manufacturing. Li also highlighted Nvidia as a strong partner for BYD in the development of chips.