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For the vehicle manufacturing and sales subsidiary, see BYD Auto

BYD Company Limited or BYD (Chinese: &#;&#;&#;; pinyin: Bǐyàdí) is a publicly listed Chinese multinational conglomerate manufacturing company headquartered in Shenzhen, Guangdong, China. It is a vertically integrated company that has several major subsidiaries, including BYD Auto which produces automobiles, BYD Electronics which produces electronic parts and assembly, and FinDreams, a brand name of multiple companies that produces automotive components and electric vehicle batteries.

The company was founded by Wang Chuanfu in February as a battery manufacturing company. BYD's largest subsidiary, BYD Auto, was founded in and has grown to become the world's largest manufacturer of plug-in electric vehicles.[13] Since , BYD's automotive business has contributed over 50% of its revenue. By , it contributed over 80% of the company's total revenue.[14][15]

BYD also produces rechargeable batteries (handset batteries, electric vehicle batteries and bulk storage), forklifts, solar panels, semiconductors, and rail transit network.[16][17] Through its subsidiary FinDreams Battery, BYD was the second largest electric vehicle battery producer globally in after CATL, by producing 15.8% of the world's output.[18]

BYD's stock listing is on the Hong Kong Stock Exchange and the Shenzhen Stock Exchange. The company was ranked 212th on the Fortune Global 500 in .[19]

BYD has been the privately owned company with the largest workforce in China since , ranking only below several state-owned companies. As of , BYD employs 704,000 people, of which 102,000 are research and development (R&D) employees.[20] It also leads by patent applications, by filing over 13,000 patents between and .[21]

Name

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"BYD" is the pinyin initials of the company's Chinese name Biyadi. The company was originally known as Yadi Electronics (&#;&#;&#;&#;), named after the Yadi Road in Dapeng New District, where the company was once based.[22] According to Wang Chuanfu, when the company was registered, the character "Bi" (&#;) was added to the name to prevent duplication, and to provide the company with an alphabetical advantage in trade shows.[23] As the name "BYD" had no particular meaning, BYD started adopting a backronymic slogan "Build Your Dreams" when it participated at the North American International Auto Show in the US.[24][25][26]

History

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BYD was founded on 10 February as Shenzhen BYD Battery Company Limited, with a focus on rechargeable nickel&#;cadmium (NiCd) batteries.[27] While working as a vice supervisor at the Beijing Nonferrous Research Institute, BYD's founder, Wang Chuanfu, noticed an opportunity presented by the shift in Japanese companies from NiCd to high-value nickel&#;metal hydride (NiMH) and lithium-ion (Li-ion) batteries. He moved to Shenzhen with his cousin Lu Xiangyang and founded the company in to capitalize on the opportunity.[28] Wang started his business in the back alleys of Buji, a neighbourhood in Shenzhen. Having achieved little success, in Wang moved his business, also consisting of a battery research institute to Longgang in Shenzhen, where BYD started receiving orders from multinational companies.[29]

Logo until

BYD grew its business in its early days by implementing a redesigned manufacturing approach by incorporating more manual labour, in contrast of the capital-intensive and highly automated processes in Japan. This manufacturing process, along with in-house production of key machinery, contributed to a substantial reduction in unit costs compared to Japanese competitors by around five or six times lower.[30] BYD quickly became the world's leading NiCd battery manufacturer by July , accounting for 65% of global production. Within seven years, the company secured its position as the second-largest producer of NiMH batteries and the third-largest in Li-ion batteries.[30] By , BYD had captured more than half the world's mobile battery market and was the largest Chinese manufacturer (and in the top four globally) of all types of rechargeable batteries.[31][16]

BYD started producing mobile components in the early s. Its electronic business was spun off in as BYD Electronics.[32]

On 31 July , the company underwent an initial public offering (IPO) on the Hong Kong Stock Exchange. The company announced its target to become the world's second-largest battery firm.[33][34] Shortly after the IPO, BYD acquired a small automotive manufacturing company, Xi'an Qinchuan Automobile, from state-owned defense company Norinco in January , which was met with disapproval from shareholders, as the plan was not disclosed in the prospectus.[35] Qinchuan was acquired with the intention of developing battery-powered electric vehicles.[36][37] However, BYD's first cars were conventional petrol vehicle such as the BYD F3, with production starting in April .[30] The company produced its first plug-in hybrid vehicle, the BYD F3 DM in , followed by its first production battery electric vehicle, the BYD e6 in .[38][39] In March , BYD ended the production of pure internal combustion engine vehicles to focus on plug-in electric vehicles.[40]

In September , MidAmerican Energy Holdings, a subsidiary of Warren Buffett's Berkshire Hathaway Inc, invested about US$230 million for a 9.89%[41] share of BYD at HK$8/share.[42] Buffett credited this investment to Charlie Munger, Berkshire's vice chairman who saw the potential in the company.[43] Since , Berkshire had gradually reduced its shareholding in BYD after its share price increased significantly. As of June , Berkshire held a 6.9% stake in BYD.[44]

In , BYD unveiled a working monorail prototype marketed as "Skyrail" (Chinese: &#;&#;; lit. 'cloud rail')[45][46][47] and announced they will enter the global rail transit market.[48] The first public Skyrail line opened as a 9.7 km (6.0 mi) long loop line in Yinchuan's flower expo in .[49][50]

Between and , due to several factors such as the slowdown of BYD Auto's sales, BYD saw its net profit has falling sharply for three consecutive years, especially in when it dropped to CN¥ 1.6 billion. Wang Chuanfu described it as the "darkest moment", since at that time the company had only one goal, which was to survive.[51] However, Wang insisted on investing CN¥ 8.4 billion in research and development.[52] In , BYD received the equivalent of &#;2.1 billion in Chinese state subsidies.[53]

In , BYD established four automotive component manufacturers spun-off from BYD divisions branded FinDreams, with the intention of supplying parts to other automotive companies.[54]

Subsidiaries and businesses

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BYD Auto

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A BYD car showroom in a shopping mall in Shenzhen

BYD Auto was founded in January by BYD owner Wang Chuanfu, following BYD's acquisition of Xi'an Qinchuan Automobile.[55] It manufactures passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), collectively known as new energy vehicles (NEVs) in China. It also produces electric buses and trucks. BYD ended production of purely internal combustion engined cars in March .

BYD's automotive business constitutes the majority of BYD's revenue. In , BYD reported a revenue of around CN¥483.4 billion from automotive and related products, a year-on-year increase of 48.9% and accounted for 80.27% of BYD's total revenue.[56]

BYD Electronics

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Single-use medical masks produced by BYD Electronics

BYD Electronic (International) Company Limited or simply BYD Electronics manufactures handset components and assembles mobile phones for its customers as an OEM or ODM. Created as a subsidiary of BYD in , it issued an IPO on the Hong Kong Stock Exchange in having been incorporated in Hong Kong on 14 June .[58]

BYD Electronics operated several overseas factories,[59] such as in Cluj, Romania;[60] a factory in Komárom, Hungary that was acquired through the February purchase of Mirae Hungary Industrial Manufacturer Ltd;[60] and a factory in Chennai, India, which was also completed in .[60] In addition, BYD Electronic has production bases in Huizhou, Tianjin, and at Baolong Industrial Park, Longgang District, Shenzhen.[61]

Since , BYD Electronics became one of the original equipment manufacturer (OEM) of Apple's iPad.[62] It also produces iPads in its factory in Vietnam, which went operational in July . The Vietnamese factory is located at the Phu Ha industrial park in the Phú Th&#; province. The first phase of the facility has an annual capacity of 4.32 million tablets and 50 million optical prism products.[63][64]

In August , BYD Electronics has agreed to buy several Chinese factories operated by Jabil, a U.S. manufacturer that supplies major components to Apple.[65]

In May , it was announced that BYD Electronics would be added to Hong Kong&#;s Hang Seng Index.[66]

BYD Semiconductor

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BYD Semiconductor Co., Ltd. was established in as the successor to the BYD IC Design Department that was established in .[17] manufactures and distributes semiconductor products such as integrated circuits, insulated gate bipolar transistor modules, light emitting diodes, single chips, and other products.[67] The company planned to issue an initial public offering (IPO) before cancelling it in November as the company chose to increase investments in wafer production.[68]

BYD Forklift

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BYD Forklift was established in and headquartered in Zhenjiang, Shaoguan. It develops and produces electric forklifts with an annual production capacity of 30,000 units. The company marketed its forklifts since .[69]

FinDreams

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FinDreamsProduct typeAutomotive componentsOwnerBYD Company LimitedCountryChinaIntroducedMarch 

; 4 years ago

 ( )

Chinese nameSimplified Chinese

&#;&#;

Hanyu Pinyin

Fúdí

FinDreams (Chinese: &#;&#;; pinyin: Fúdí) is the brand name used by four automotive supplier companies owned by BYD. These companies were announced in March as spin-offs from BYD. The establishment of FinDreams companies was done to grow sales of components to other automotive companies. The companies include FinDreams Battery, FinDreams Powertrain, FinDreams Technology, FinDreams Vision (cancelled),[70] and FinDreams Precision.[71][72]

Its Chinese name, 'Fudi' comes from a poem in the Classic of Poetry, which means honesty, trustworthiness, steadfastness and diligence.[73]

FinDreams Battery

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FinDreams Battery Co., Ltd. was registered on 5 May as a successor to BYD Lithium Battery Co. Ltd., which was established in . Its products include consumer batteries, electronic batteries, electric vehicle batteries and energy storage batteries.[74] It specializes in lithium iron phosphate (LFP) batteries, including blade battery.[75] As of November  , the company has established 15 major production bases in more than 10 cities across China.[76] The subsidiary also owns Shenzhen BYD Energy Storage Co., Ltd., (previously Shenzhen Pingshan FinDreams Battery Co., Ltd.) that produces energy storage products.[77] It produces the BYD Home Energy System, simplified as BYD HES, an integrated product combining solar panels, battery, inverter, etc.[78][79] This system generated electricity from solar power, and then stored it.[80] As of December , FinDreams Battery is the world's second largest producer of electric vehicle batteries below CATL.[81]

In early , the company started construction of a joint venture plant with FAW Group called FAW-FinDreams to produce battery packs. BYD held 51% of the shares, while FAW held the rest. Located in Changchun, Jilin, the plant was designed with a total capacity of 45 GWh. The first battery pack rolled off the plant in July , and the plant went operational in September .[82]

In June , FinDreams Battery established a joint venture with Huaihai Holding Group, which is best known for electric tricycles and electric scooters, intending to establish the world's largest supplier of sodium-ion batteries.[83] In January , construction of the sodium-ion manufacturing plant was started. The CN¥10 billion (US$1.4 billion) plant will have a 30 GWh annual production capacity.[84]

In February , the company signed an 8-year agreement with American automotive supply company, BorgWarner. FinDreams Battery will supply BorgWarner with blade cells for manufacturing LFP battery packs in Europe, the Americas and several Asia Pacific regions. BorgWarner will also secure an intellectual property license to use FinDreams battery pack design and manufacturing process.[85]

In March , FinDreams Battery became a cell supplier to Tesla's energy storage manufacturing in China which operates at the newly built Shanghai Megafactory. It will start supplying 20 percent of the cells needed to produce Tesla's Megapack starting from the first quarter of .[86]

FinDreams Powertrain

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FinDreams Powertrain Co., Ltd. develops and produces engines and powertrain-related parts such as transmissions, axles, electric car platforms and plug-in hybrid systems.[17][74]

FinDreams Technology

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FinDreams Technology Co., Ltd. develops and produces automotive electronics and chassis-related parts that are used in passenger cars, commercial vehicles, and rail transit.[74] It has ten major products such as vehicle thermal management, vehicle wiring harness, smart cockpit, advanced driver-assistance system (ADAS), passive safety, braking system, suspension and exhaust, body control, steering system, and body accessories.[17]

FinDreams Precision

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FinDreams Precision Co., Ltd. (previously FinDreams Molding)[70] operates moulding manufacturing and research and development.[74]

Rail transit

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SkyRail monorail

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BYD constructed monorail systems around the world, including the Guang'an Metro and the Guilin Metro in China, Line 17 in São Paulo and the SkyRail Bahia, both in Brazil. BYD is also part of a consortium that was awarded a pre-development contract to build a monorail from the San Fernando Valley to LAX via the Sepulveda Pass in Los Angeles.[87]

SkyShuttle tram

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Pingshan SkyShuttle elevated tram line in Pingshan, Shenzhen is owned by BYD

BYD also offers a rubber-tyred tram product, known as "SkyShuttle" (Chinese: &#;&#;; lit. 'cloud bus').[88] Bishan rubber-tyred tram in Chongqing is operational.[89]

Operations

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Workforce

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In , BYD had 288,000 employees. BYD workforce reached 570,000 employees in , after the company hired 280,000 employees in a single year. At that year, BYD became the privately owned company with the largest workforce in China, and only below several state-owned companies such as China National Petroleum Corporation, State Grid Corporation of China and China Post. By the end of , the company had 704,000 employees, with 133,000 new hires that year.[20] This workforce count is nearly double that of Toyota, which has 375,000 employees.[90]

On 5 November , a 36-year-old employee of BYD was reported dead in his rented home. According to his relatives, his sudden death was due to high-intensity overtime work. No autopsy was conducted, so the cause of death remains unclear. BYD agreed to pay the deceased employee's family a lump sum of CN¥200,000 in compensation.[91]

Research and development

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BYD heavily invested in core component development, with a substantial R&D budget and personnel. Founder Securities data reveals that BYD's R&D investment reached CN¥7.99 billion in with a 12.9% rise in R&D personnel, totaling 40,382 employees in . The company also increased its patent filing by 19.7% year-on-year in , with 29,777 patents.[14]

In , BYD invested CN¥18.65 billion in R&D, more than double than its budget.[92] In , BYD spent CN¥39.91 billion on R&D, which is 6% of its operating income.[93] In that year, the company also recruited 33,000 new R&D personnel, increasing the total number to 102,000. Among these R&D employees, 60% are under the age of 30. Additionally, BYD disclosed in its financial report that the average annual salary for R&D personnel is around CN¥212,000.[93]

Manufacturing

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Supply chain

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BYD is characterized by its vertical supply chain system, originating as a battery company in before venturing into cars (via BYD Auto) in . At the time, BYD also leverages China's low labour costs, transforming production lines for power batteries from capital-intensive to labour-intensive, ensuring a competitive edge through a robust supply chain system and reduced production costs.[94] Post-entry into the automobile industry, BYD developed the entire automotive industry chain, emphasizing core technology research and development. Proficiency in key components, such as batteries, motors, and electronic control was achieved, marked by a large-scale, fully automated production line for batteries.[14] This vertical integration model strengthened its industrial chain and mitigates challenges such as the global chip shortage.[14]

BYD diversified into research and development of semiconductor by establishing BYD Semiconductor in . Core components, including automotive chips and the DiLink automotive intelligent system, were independently developed. The establishment of FinDreams companies from December focused on power batteries, automotive lighting, electronics, powertrain, and moulding.

In early , BYD transitioned its the parts and components division into subsidiary companies, collectively known as FinDreams. This shift enabled independent operations for these companies, making component supply to other automotive companies easier.[14]

Facilities

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View near BYD headquarters in Pingshan, Shenzhen

BYD has many production bases, including three locations in Shenzhen[95] (one of which is on the self-titled 'BYD Road' (simplified Chinese: &#;&#;&#;&#;; traditional Chinese: &#;&#;&#;&#;; pinyin: Bǐyàdí Lù) in Pingshan District, Shenzhen),[95] as well as sites in Huizhou,[95] Shanxi,[96] and Shanghai.[96]

Auto production bases include an automobile assembly line in Xi'an, a K9 electric bus manufacturing plant in Dalian,[97] a photovoltaic module (solar panel) Bloomberg New Energy Finance Tier 1 manufacturing plant in Beijing, an R&D center and nascent automobile assembly line in Shenzhen, and an R&D center in Shanghai.[98]

US operations can be found in Elk Grove Village, Illinois, and San Francisco, California.[16] BYD also acquired a site for a future North American headquarters in downtown Los Angeles, and has built and operates a manufacturing plant in Lancaster, California, near Los Angeles.[99]

In a bus plant opened in Newmarket, Ontario to handle orders in Canada.[100][101][102] BYD has three factories in Brazil, the first of which opened in for the production of electric buses.[103] In April , it inaugurated its second plant for photovoltaic modules. In , BYD opened its third manufacturing plant in the country in Manaus, specifically for lithium iron phosphate batteries, for use in electric buses.[104][105] BYD has two electric bus assembly facilities in Europe in Komarom, Hungary and Beauvais, France.[106] BYD built a new facility in Chongqing, China for producing its blade battery,[107] which are considered to be the safest EV batteries.[108] The first plant of the company in India was opened in Chennai.

Corporate affairs

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Business trends

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The key trends of BYD are (as at the financial year ending December 31):

Year Revenue (CN¥ bn) Net income (CN¥ bn) Net profit margin Revenue source Source Automobile Non-automobile 100.21 5.05 5.0% 55% 45% [109] 102.65 4.07 4.0% 53% 47% [109] 130.05 2.78 2.1% 59% 41% [110] 127.74 1.61 1.3% 49% 51% [111] 156.60 4.23 2.7% 53% 47% [111] 216.14 3.04 1.4% 59.7% 40.0% [112] 424.06 16.62 3.9% 76.6% 23.3% [112] 602.31 30.04 5.0% 80.3% 19.7% [113]

Management

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Notable members of the senior management of the company are as follows:[56]

Executive director

• Wang Chuanfu, also chairman and president

Non-executive directors

• Lu Xiangyang, also vice chairman

• Xia Zuoquan

Independent non-executive directors

• Cai Hongping
• Zhang Min
• Yu Ling

Supervisory Board

• Li Yongzhao
• Zhu Aiyun
• Wang Zhen
• Huang Jiangfeng
• Tang Mei

Senior management

• Li Ke, executive vice president, president of BYD in America
• Luo Hongbin, senior vice president, chairman of Shenzhen BYD Auto Industrial Co., Ltd.
• He Zhiqi, senior vice president, COO of BYD Passenger Car Division, director of Shenzhen Denza New Energy Automotive
• He Long, senior vice president, chairman of FinDreams Battery
• Liu Huanming, vice president
• Wang Chuanfang, vice president
• Ren Lin, vice president
• Wang Jie, vice president
• Zhou Yalin, vice president, CFO of BYD Electronic (International), director of BYD Semiconductor, chairman of BYD Auto Finance
• Yang Dongsheng, vice president
• Zhao Jianping, vice president
• Li Qian, company secretary, secretary to the Board, director of BYD Semiconductor

Recognition

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The company has been recognized for innovation; for example it has developed technologies that allow mobile batteries to be made at room temperature rather than in expensive, heated dry rooms.[114] In , BYD topped the Bloomberg Businessweek Tech 100 that listed fast-growing tech companies.[115] In that year, BusinessWeek ranked BYD the eighth most innovative company in the world[116] and that same year saw Fast Company ranking BYD as the 16th most innovative.[117] In , BYD won the Zayed Future Energy Prize award for Large Corporations for their development of robust rechargeable batteries.[118] In , PV Magazine awarded BYD the top category of innovation on its newly launched battery storage system that advances progress in three categories: modularity, charging and discharging capacity, and efficiency.[119]

Lawsuits and disputes

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In the United States

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On 27 April , BYD hired attorney Charles Harder and filed a federal civil complaint in U.S. District Court, Southern District of New York,[120] against Vice Media alleging defamation for a story about BYD using forced Uyghur labour in its supply chain which was published on 11 April .[101] BYD's case was dismissed with prejudice in March .[121]

In November , BYD in the U.S. filed a lawsuit against the Alliance for American Manufacturing (AAM), a non-profit lobbying group that advocated for a ban on using the federal tax budget to purchase rail cars or buses from foreign state-owned or controlled companies such like BYD, which has an electric bus factory in California, U.S. The rule was signed into law as the Transit Infrastructure Vehicle Security Act (TIVSA). BYD alleges that AAM has engaged in a "malicious, fraudulent, outrageous, and reckless campaign" that damages BYD's reputation.[122] The Supreme Court of the United States rejected BYD's suit in August .[123]

In , the United States Department of Commerce found that BYD had circumvented tariffs on solar panels by routing its operations through Southeast Asian countries.[124] In August , the U.S. Department of Commerce issued final determination on BYD, determining they circumvented tariffs.[125]

The National Defense Authorization Act for Fiscal Year proposed the prohibition of US defense funding for BYD batteries on security grounds.[126][127]

Foxconn disputes

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In addition to patent litigation[42] Foxconn sued BYD in Hong Kong and Illinois in , alleging BYD poached 50 Foxconn employees and was complicit in the stealing of trade secrets to set up a competing cell manufacturing operation.[128] Court proceedings were brought before BYD Electronic was spun off by BYD later in , delaying the public listing[129] on the Hong Kong stock exchange by half a year.[130]

Foxconn[when?] also opened proceedings in the district where BYD is headquartered, at the Shenzhen Intermediate People's Court,[citation needed] which referred the case to the Supreme People's Court, which in turn commissioned an appraisal by the Beijing JZSC Intellectual Property Forensic Center into files in BYD's possession which were alleged to belong to Foxconn.[citation needed] Eventually[when?] the Shenzhen court made the final judgment: BYD's files contained non-public information originating from Foxconn, which could bring economic benefits to the holders, thereby, BYD was found guilty of infringing Foxconn's trade secrets.[129][additional citation(s) needed]

Afterwards, Foxconn withdrew the civil proceedings against BYD in mainland China, and sought criminal prosecution instead.[citation needed] On 20 March , the former executive director and Vice President of BYD was arrested.[citation needed] Then on 24 and 31 March two former employees of Foxconn were arrested and sentenced to 1 year and 4 months, and 4 years in prison respectively.[129][additional citation(s) needed]

BYD issued a counterclaim to Foxconn in Hong Kong court, alleging defamation and bribery of Chinese officials as well as intimidation on Foxconn's part.[128]

References

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Once considered an unprofitable niche, electric vehicles (EVs) are now big business. Sales reached more than 14 million in , and 18% of cars sold were electric, according to the International Energy Agency. The biggest electric car companies have continued increasing production to keep up with demand.

China now has three of the world's top 10 EV manufacturers, but you won't see many of their cars in the United States or the European Union. Both have recently imposed hefty tariffs on EVs made by Chinese companies. Keep reading for the latest news on the largest EV companies.

Image Source: Getty Images

Largest EV companies

The largest EV companies

Companies 1-5

1. BYD

• Headquarters: China
• Founded:
• EVs manufactured in : 3,014,692 (1,572,983 BEVs, 1,441,709 PHEVs)

Chinese conglomerate BYD Company (OTC:BYDDY), which is short for "Build Your Dreams," is the global leader in EV manufacturing. It produces personal and commercial EVs, as well as monorail systems and mobile components.

BYD took the top spot on this list in , when it (and other Chinese automakers) ramped up EV production. While it doesn't have any U.S. factories, BYD has plans for global expansion. It announced plans for its first European production factory, in Hungary, at the end of .

BYD's most popular line of vehicles is its Dynasty Series, which is named after China's imperial dynasties. Models include the BYD Qin, at one point the best-selling EV in the world, and the automaker's flagship sedan, the BYD Han.

2. Tesla

• Headquarters: United States
• Founded:
• EVs manufactured in : 1,811,088 (all BEVs)

Auto manufacturer and clean energy company Tesla (NASDAQ:TSLA) exploded onto the scene to become one of the world's largest companies in less than two decades. In , it became just the sixth company to break a market cap of $1 trillion.

Tesla's vehicles are extremely popular and have set multiple sales records. The Model 3 was the first EV to pass 1 million in global sales. In the first quarter of , the Model Y became the best-selling car worldwide, making it the first EV to hold that title.

While Martin Eberhard and Marc Tarpenning incorporated Tesla as Tesla Motors in , the company is more closely associated with CEO Elon Musk. Musk first invested in the company in , becoming the largest shareholder and chairman of the board. He has served as CEO since .

3. Volkswagen

• Headquarters: Germany
• Founded:
• EVs manufactured in : 1,010,263 (758,210 BEVs, 252,053 PHEVs)

German auto giant Volkswagen (FRA:VOW) has a longer history with EVs than many people realize. It started developing EVs in through its Centre for Future Research led by Dr. Adolf Kalberlah. The first all-electric Volkswagen was called the Elektro Transporter, with a range of 43.5 miles and a 10-hour charge time.

While Volkswagen experimented with EVs for decades, it announced in that it was making them a focus for the consumer market. The ID. series is its current EV lineup, including the ID.3 hatchback, the ID.4 crossover SUV, and the ID.7 sedan.

4. General Motors

• Headquarters: United States
• Founded:
• EVs manufactured in : 659,954 (641,162 BEVs, 18,792 PHEVs)

General Motors (NYSE:GM) dipped its toe in the EV world in the s when it produced the General Motors EV1. It was the first modern EV from a major manufacturer, and it was only available through lease agreements. Although it was popular with drivers, General Motors didn't expect EVs to be profitable, so it discontinued the program and destroyed most of the EVs.

What a difference a few decades makes, since General Motors is now one of the top-five largest EV companies in the world. It has also announced plans to exclusively offer EVs and end production of its gas- and diesel-powered vehicles by .

General Motors has launched (or announced plans to launch) EVs across all its core auto brands (Chevrolet, Buick, GMC, and Cadillac). Its most popular so far has been the Chevrolet Bolt, but it's being phased out to transition to new EV models.

5. Stellantis

• Headquarters: Netherlands
• Founded:
• EVs manufactured in : 654,438 (348,422 BEVs, 48 fuel cell EVs [FCEVs], 305,968 PHEVs)

The youngest automaker on this list, Stellantis (NYSE:STLA), came about from a merger of Fiat Chrysler Automobiles and PSA Group. This company's auto brands include Chrysler, Dodge, Fiat, and Jeep.

While Stellantis was slower than other automakers to prioritize electrification, it's quickly catching up. It has set targets of 100% of its sales in Europe and 50% of its sales in the U.S. to be BEVs by the end of the decade, and it's aiming for 5 million in annual global BEV sales by .

This vehicle company's growing EV lineup has contributed to impressive year-over-year growth. Its global BEV sales increased by 21% in , and it was No. 1 in the United States for PHEV sales. Its EVs are also highly popular in Europe -- the Fiat 500e is one of Italy's best-selling EVs, and the Peugeot e-208 was the most-sold EV in France during the first quarter of .

Companies 6-10

6. Geely Auto Group

• Headquarters: China
• Founded:
• EVs manufactured in : 599,445 (420,480 BEVs, 178,965 PHEVs)

One of the largest Chinese automobile manufacturers, Geely (OTC:GELYF), saw its EV sales grow by 21% year-over-year in the first quarter of . Geely controls quite a few auto brands around the world, with Volvo likely being the most recognizable in the U.S.

Owning Volvo puts Geely in an advantageous position. Because Volvo has U.S. manufacturing operations, it can sell EVs that are made in China, including the EX30, while avoiding the hefty tariffs normally charged on Chinese EV exports.

Geely has multiple EV-only brands, including luxury EV brand Zeekr and Swedish Polestar. Geely Auto offers entry-level EVs through its Geometry product line and upscale hybrids and EVs through its Geely Galaxy brand.

7. BMW

• Headquarters: Germany
• Founded:
• EVs manufactured in : 562,921 (378,722 BEVs, 151 FCEVs, 184,048 PHEVs)

Luxury vehicle manufacturer BMW Group (OTC:BMWYY) started researching EVs in . Its first EV was the BMW Electric, which could reach speeds of 100 kilometers per hour and had a maximum range of about 60 kilometers. Two of these cars were used as support and camera cars during the Olympic Games in Munich.

The BMW brand has several EVs in its lineup, including the compact executive i4, the i7 sedan, and the iX crossover SUV. Among its other brands, Mini has already launched EVs, and Rolls-Royce is currently working on its first EV, the Rolls-Royce Spectre.

BMW Group is projecting that its share of EVs in total vehicle deliveries could exceed 30% by as early as . It has also set a goal of delivering 10 million EVs to customers in total by .

8. Hyundai Motors

• Headquarters: South Korea
• Founded:
• EVs manufactured in : 552,203 (418,632 BEVs, 4,868 FCEVs, 128,703 PHEVs)

Hyundai Motors (FRA:HYU) was the third-largest automobile manufacturer in the world by sales in , and it came in eighth for EVs manufactured. Its top two brands are Hyundai Motor Company and Kia. It also has a luxury division, Genesis Motors, and an EV subbrand called Ioniq, which launched in .

The company has set a goal of being a top-three EV manufacturer by . In March , it announced an investment of 68 trillion South Korean won (about $50.5 billion) in South Korea, part of which will go toward building three new EV factories.

9. GAC

• Headquarters: China
• Founded:
• EVs manufactured in : 524,501 (499,495 EVs, 25,006 PHEVs)

Guangzhou Automobile Group (OTC:GNZUF), also known as GAC, is China's third-largest EV manufacturer. Its EV arm, GAC Aion, has seen significant sales growth, going from 271,156 vehicles sold in to 480,003 vehicles sold in . It didn't quite reach its target of 500,000 units sold, but it was close, and it still grew sales by 77%.

Like most Chinese automakers, GAC hasn't been able to break into the U.S. market yet. It doesn't produce or sell EVs in the United States. It has expanded into North America, though, as EVs from its Aion brand are now available in Mexico.

10. Mercedes-Benz

• Headquarters: Germany
• Founded:
• EVs manufactured in : 405,065 (244,149 BEVs, 160,916 PHEVs)

Mercedes-Benz Group (OTC:MBGY.Y) has long been one of the major luxury automakers, and now it's aiming to be the most desirable luxury EV brand. The company has pledged to go all-electric by . However, it has clarified that it will do that where market conditions allow, meaning it could possibly continue selling gas-powered vehicles in countries with limited EV demand.

Even though its EV sales have grown, they're still far behind the German automakers' targets. So in early , it tempered expectations, stating that it would likely continue selling gas-powered vehicles well into the s.

Mercedes-Benz isn't the only car company to deal with slower EV sales recently. On a positive note, it's developing a global high-power charging network across key markets, with plans to have over 2,000 by the end of the decade.

Global EV sales

Global EV sales

EV sales and their share of total vehicle sales worldwide have grown rapidly in recent years. Since , global EV sales have increased by about 3.6 million per year, and EV sales share is more than 4 times higher. Projections by the International Energy Agency anticipate growth accelerating rapidly over the next decade.

Data source: International Energy Agency. Sales and sales share data for , , and are projections based on the STEPS scenario. Year EV sales EV sales share 2,980,000 4.2% 6,600,000 8.9% 10,200,000 14.0% 13,800,000 18.0% * 20,800,000 25.0% * 40,700,000 44.0% * 56,500,000 55.0%

China is the worldwide leader for EV sales and sales share, and it's not a particularly close race. It had 8.1 million EVs sold last year, 38.0% of its total vehicle sales.

The United States is currently lagging behind not just China but also Europe in its EV numbers. The difference in sales is understandable -- Europe and especially China both have larger population sizes. But the United States also has a far smaller EV sales share.

Data source: International Energy Agency. Sales and sales share data for , , and are projections based on the STEPS scenario. Year U.S. EV sales U.S. EV sales share China EV sales China EV sales share Europe EV sales Europe EV sales share 294,000 2.3% 1,140,000 5.7% 1,400,000 10.0% 630,000 4.7% 3,250,000 16.0% 2,300,000 17.0% 990,000 7.4% 5,900,000 29.0% 2,700,000 20.0% 1,390,000 9.5% 8,100,000 38.0% 3,300,000 21.0% * 3,060,000 20.0% 11,000,000 49.0% 4,800,000 31.0% * 8,800,000 55.0% 17,900,000 68.0% 9,200,000 60.0% * 11,200,000 71.0% 22,100,000 85.0% 13,620,000 87.0%

Average EV prices

Average EV prices

Drivers pay a premium for EVs, at least in terms of the up-front price. The average transaction price for electric cars was $55,242 in April , according to Cox Automotive data. For gas-powered vehicles, it was $44,989.

While there's still a difference, the price gap between conventional and electric cars is shrinking. In the United States, it decreased from 80% in to 59% in . China has eliminated the "electric premium," as its EVs were 14% cheaper than its conventional cars as of .

Data source: International Energy Agency. Country EV price premium () EV price premium () United States 80% 59% China 16% (14%) France 37% 39% Germany 7% 14% United Kingdom 71% 44%

Investing in EV companies

How to invest in EV companies

The world is moving more and more toward EVs. Many automakers have pledged that they're going all-electric. The federal government and more than 15 states offer EV incentives such as tax credits and rebates. Perhaps most importantly, EVs make up a growing share of total vehicles sold each year.

If you're interested in investing in EV companies, you have several options, including:

• Investing in automotive stocks with strong EV divisions. At this point, there's quite a bit of overlap between the top automakers and the largest EV companies. You'll get at least some exposure to the EV market by investing in any major automaker, but you can also look for those that have pledged to go all-electric or have successful EV lineups.
• Investing in electric car stocks. If you want a greater focus on EVs, go for companies that already have all-electric lineups or those with EVs as their flagship models.
• Investing in EV ETFs. For a broader approach, there are plenty of ETFs (exchange-traded funds) that invest in companies related to the EV market.
• Investing in EV battery stocks. Instead of directly investing in EVs, another option is to invest in the companies that supply the battery since this is the key component.

There are plenty of ways to add EV companies to your portfolio. ETFs are generally the easiest option since they include a large number of stocks that you don't need to choose yourself. If you prefer to pick stocks, the largest EV companies are a good place to start.

FAQs

FAQs

What is the biggest electric car company?

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The biggest electric car company is BYD. It manufactured 3,014,692 EVs in , over 1 million more than any other company.

How many EVs were sold in ?

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There were 13.8 million EVs sold in . That's a 35% increase from .

What percentage of vehicles sold in were electric?

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EVs made up 18% of the vehicles sold in . This number has been on the rise, from 14% in and just 2% in .

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Lyle Daly has positions in Tesla. The Motley Fool has positions in and recommends BYD Company, Tesla, and Volkswagen Ag. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft, General Motors, and Stellantis and recommends the following options: long January $25 calls on General Motors. The Motley Fool has a disclosure policy