New energy vehicles (NEVs), which are the sum of EVs (electric vehicles) and PHEVs (plug-in hybrid vehicles), occupy the largest share in China, and the market value exceeded 1 trillion yuan (about 20 trillion yen) in June 2022. However, China BYD, which has jumped to the third place after US Tesla and Toyota Motor among the world’s automobile manufacturers, announced that it will enter the Japanese passenger car market on July 21, 2022. Why did BYD, which had previously said it would not advance into passenger cars, come here and change its policy? Where is the chance of winning? We asked the president of BYD Japan, a Japanese corporation, Gakusuke Liu.
Forbes JAPAN (F below): Why did you decide to enter the Japanese market with EVs?
BYD President Liu Xueliang (below Liu): It was inevitable that we decided to enter the Japanese passenger car market at this time. BYD was founded in China 27 years ago in 1995, but entered Japan in 1999 and has supplied parts and technologies centered on batteries to many Japanese electrical equipment manufacturers. In 2015, it brought the Chinese EV bus to Japan for the first time and started operation in Kyoto. More than 70% of EV buses currently running in Japan are made by BYD. Electric forklifts were also introduced in Japan in 2015, and currently about 400 electric forklifts are active in various parts of Japan.
Many Japanese companies visit our Chinese headquarters, where everyone asks the same question. That is, “When will BYD’s EV enter Japan?” In this way, we did not suddenly decide to enter the Japanese passenger car market. I believe that BYD has arrived as a result of becoming a member of Japanese society over a long period of more than 20 years.
Gakusuke Liu: Manipulates fluent Japanese and talks about Japan’s desire to enter the EV market
F: In May 2010, BYD Japan executives showed a negative attitude toward entering the passenger car market. Why did you change your policy in two months?
Liu: Technology is constantly evolving, and what is required in the market is also changing. In order to enter the passenger car market, it is necessary to prepare not only for selling cars but also for maintenance and loans. It is important how we can deliver peace of mind to Japanese consumers. It was at that time that everything was ready to enter the passenger car market.
F: Japan is a manufacturing country, and Japanese consumers are very strict about quality and design. Is there a chance of winning in entering such a market?
Liu: In 2010, we acquired the Tatebayashi Plant of Ogihara Corporation in Japan, which has high technology in stamping dies for automobiles.Press dies are the most important basic technology for manufacturing cars, and Ogihara was acquired by our founder, Wang Chuanfu. (※)Is proof that he pays homage to Japanese technology.
The origin of technology is people, and with the acquisition of Ogihara, we learned Japanese manufacturing. The beautiful appearance of BYD’s cars today is largely due to the dramatic improvement in press die technology associated with the acquisition of OGIHARA. We believe that entering the passenger car market means putting the spirit of manufacturing learned from Japan on EVs and “returning it to Japan.” In that sense, we aim to coexist and co-prosper with Japanese manufacturers, not whether to win or lose.
* Wang Chuanfu (founder of BYD. Although he lost his parents early in a poor family, he got a job at a company that studied batteries after having a hard time. Later, he founded BYD. Was also selected as a Forbes US Billionaire)