BYD's overseas expansion drives Yusin Holding Group's Fuzhou subsidiary operation

Annabelle Shu, Taipei; Peng Chen, DIGITIMES Asia 0

Credit: AFP

China-based EV maker BYD has been scaling up in overseas markets. Besides the competition with Tesla, its entry into the Thai market has garnered much attention. Support from Taiwan-based automotive parts suppliers has become essential for the carmaker's ambition in foreign markets.

According to DIGITIMES Research, BYD was the top EV seller and accounted for the most market share in 2022 and the first half of 2023. Moreover, the International Energy Agency data showed that China-made EVs took up only 4.2% of global EV exports in 2018. The proportion surged to 35% in 2022.

Due to their development constraints in the US market, Chinese EV makers focus on building a reputation in Europe. Up to 40% of EVs were made by BYD and other top carmakers in the EVs exported from China to Europe in 2022. BYD also develops the emerging Southeast Asian market aggressively, with Thailand being the center.

In August, BYD's Thai dealer Rever Automotive announced that it will set up new storage space to hold over one million components. The company can distribute the parts to dealers across the country within one to four days to meet the Thai market's growing need for BYD cars.

Taiwan-based Yusin Holding Group is a leading manufacturer of brake master cylinders and brake wheel cylinders. Chairman Ching Te Chi said BYD is the core customer of Fuzhou-based Assured Brake Systems, Yusin's China subsidiary.

He said EV products are expected to account for 40% of Assured Brake Systems' sales by the end of 2023. Sales from BYD also take up 30% to 40% of the component supplier's overall sales. Assured Brake Systems has offered parts for BYD's Seagull and Yuan Plus, developing those for the Qin model. The company also supplies GAC Aion's Y, V, S and LX models.

Chi said Assured Brake Systems' revenues are expected to reach CNY170 million (US$23.8 million) in 2023 and CNY200 million in 2024. The company's gross profit rate is about 30%, with the rate of EV brake pads achieving 35%. As EVs take up more of the company's sales, its revenues will keep increasing.

As BYD expands to Thailand, Chi said supplies will be sent from Fuzhou to the automaker before Yusin's subsidiary in Malaysia ramping up.