BYD sales come down to a simple change: putting the steering wheel on the right side

But according to the Chinese brand’s distributor in the region, BYD’s success is down to its quick adaptation to new markets, with one change in particular making the difference.

“They were one of the first 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 a BYD distributor in Singapore since 2019.

Chinese cars drive on the right side of the road and thus have steering wheels on the left side of the car, making them left-hand drive models. However, several overseas markets — Japan, Australia, Malaysia, Singapore and the Chinese city of Hong Kong — are the other way around: the cars drive on the left and also have right-hand drives, making them “right-hand drive” models. . .

While right-hand drive markets are smaller than left-hand drive markets, they are likely the first targets for a Chinese EV brand trying to go global.

It took some time for Sime Darby’s relationship with BYD to bear fruit. “When we started in 2019 (in Singapore) there were not enough deals in terms of their products,” says Gan. Only one passenger car model was available: the BYD e6, a compact multi-purpose vehicle.

That changed two years ago, when BYD decided to “get aggressive outside of China,” Gan said. BYD orders surged as the Chinese electric vehicle brand launched the Atto 3, Seal and Dolphin in international markets.

What is Sime Darby?

Sime Darby, no. 25 per wealth Southeast Asia 500, is one of the largest conglomerates in Malaysia. Sime Darby’s motor business has a footprint in ten markets across Asia Pacific, including China. The company represents several mainland luxury car brands in China and is also one of the largest BMW dealers in the world.

Sime Darby assembled its first car in 1982, making BMW and Land Rover models in Selangor. Since then, it has worked mostly in vehicles with internal combustion engines, but has started to enter electric vehicles in recent years.

In addition to being BYD’s distributor in Singapore, Sime Darby was also appointed as BYD’s distributor in Malaysia when the Chinese automaker was looking to expand into that market.

As the designated distributor, Gan explains that Sime Darby is responsible for bringing in the cars, helping to grow the brand and appointing dealers.

One where Sime Darby tried to grow the BYD brand in Malaysia was to host a big launch event in December 2022. BYD back then “wasn’t that big” compared to the company we know today, Gan explains, but Sime Darby followed up with a big pitch. no prior orders lined up. He says the launch resulted in 800 vehicles being sold in three days.

In addition to the partnership with BYD, Sime Darby works with other Chinese car brands. It is working with Chery to make cars in Malaysia and has agreed to distribute cars from Hong Kong startup Xpeng, another “right-hand drive” market.

Sime Darby’s engine division generated 31.6 billion Malaysian ringgit ($7.4 billion) in its most recent fiscal year, which ended June 30, a 16 percent increase from the previous year. Almost half of its revenue comes from mainland China, Hong Kong and Taiwan. The company also said that new operations, such as BYD in Malaysia, helped boost revenue.

Chinese EVs are spreading across Southeast Asia

BYD is not the only Chinese electric vehicle manufacturer that has tried to break into Southeast Asia. Geely, Chery, Great Wall Motors and Xpeng are also entering the market.

Analysts describe Southeast Asia as the “most important” overseas market for Chinese carmakers as Western markets such as the US and Europe impose tariffs on imported Chinese cars.

Gan expects electric vehicles to be a growth market for Sime Darby as consumer confidence in the new technology grows. Malaysia is already reporting close to an estimated 100% year-on-year growth in total EV sales, he explains.

“We ended 2023 with 10,000 electric vehicles sold. By July 2024, we are already at 12,000 units sold, which means at the middle of the year we have already sold 2023,” says Gan. Sime Darby has a 40% market share of the number of electric vehicles sold in Malaysia this year.