BYD's success has been helped by government subsidies, with Beijing pumping huge amounts of cash into domestic firms as well as research and development. Photo: Kazuhiro NOGI / AFPChina's BYD posted a record annual profit for 2023 on Tuesday, just months after surpassing Tesla to become the world's leading electric vehicle seller.
China has spearheaded a targeted industrial strategy to boost its EV sector, pouring vast state funds into domestic firms as well as research and development. Demand for EVs has soared in recent years in China, which is the world's biggest emitter of polluting greenhouse gasses. Under intense pressure to outdo each other, China's automakers are engaging in a price war, especially with consumer spending slowing as the country's post-pandemic recovery stutters.BYD ceased production of gasoline-powered vehicles in 2022 and now focuses exclusively on hybrid and electric models.The company said earlier this year that its future EV factory in Hungary would begin production in three years, making it the first Chinese firm to manufacture passenger cars in Europe.