China’s electric vehicle giant BYD is expecting to make millions on the back of the escalating US-Iran conflict.
As the US-Iran conflict continues to send global fuel prices soaring, the automaker has reported a windfall as more drivers shift toward electric and hybrid vehicles globally.
The shift is being driven by a dramatic spike in oil prices.
Oil prices have jumped from around $86 a barrel at the start of the year to more than $145 as lingering disruptions through the Strait of Hormuz continue to throttle global supply.
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Riding that momentum, BYD this week lifted its annual overseas sales target by 15 per cent to 1.5 million vehicles, up from 1.3 million, as it bets on growing international demand.
Prior to the escalation of the US-Iran conflict, February witnessed BYD’s international sales surpass domestic sales for the first time, clearing 100,000 units.
However, the Shenzhen-based company is still facing mounting pressure as intense competition continues to wage war on the world’s biggest EV market – China.
A staggering 80 per cent of its total sales come from the Chinese market.
The Chinese powerhouse recently announced a 19 per cent decline in annual net income, its first fall since 2021, and a 3 per cent rise in revenue, the slowest pace in six years.
The bruising price war in China’s car market has forced BYD to double down on its international strategy.
And in Australia, demand for EVs is heading in the right direction for BYD.
The brand claims it is well placed to handle that increased demand.
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A BYD Australia spokesperson said inquiries for the brand’s electric and hybrid vehicles had surged sharply over the last few weeks.
“We’ve seen around a 50 per cent increase in inquiries,” they said.
“We’re seeing people who were ordinarily in the market for a new petrol vehicle now changing their preference for an EV or low-fuel-using super hybrid.
“We’re also seeing customers who were considering an EV or super hybrid down the track bringing forward their purchasing decision.
“We now have in excess of 10,000 orders across the BYD range.”
According to BYD, it is prepared for the spike in demand, reassuring Australian customers that more stock is on the way.
“BYD’s vertical integration when it comes to vehicle manufacture is a distinct advantage, along with incredible production flexibility,” a BYD spokesperson said.
“BYD can switch production allocation as required without lots of internal red tape. Decisions get made at the very top, and they get made very quickly.
“Australia has secured significant additional production allocation over the coming months which will help keep wait times to reasonable levels across the majority of our line-up.”
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However, customers ordering the popular Atto 2 and Sealion 7 are being told to expect wait times of up to three months, which BYD admits is on “the longer end” of its typical delivery schedule.
And it’s not just BYD seeing a massive rise in demand.
Omoda Jaecoo, Chery’s premium sub-brand, recently reported that its only EV, the J5 EV, has already surpassed 4,000 orders in the Australian market.
The demand for EVs in Australia saw the brand receive 2000 orders over the last two weeks.
According to officials figures, BYD was the sixth biggest selling car brand in Australia in February.
