China's electric vehicle rise: BYD plans expansion in Middle East
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The Gulf region is now a key international market for Chinese electric vehicles. China's biggest-selling EV brand is BYD and it's seeking to expand its presence in the Middle East. Our correspondent Jim Stenman has the story.

A move that took many by surprise – BYD replacing Tesla as the world's top-selling electric car maker in the final quarter of 2023 – a testament to the inroads China is making when it comes to EVs, as the company boosts its presence in a place wanting to be seen as a leader in the energy transition.

AD HUANG, General Manager, BYD Middle East & Africa: "People are willing to accept new stuff, new technology. They want to try the car."

Quite the contrast to the West, where some are weighing protectionist measures to support their own car manufacturers struggling to compete with more affordable Chinese vehicles, benefiting from China's battery expertise, and huge local market. Here in the Gulf, BYD is primarily focused on the UAE, the Arab world's second-largest economy, which Tesla entered in 2017.

SALMAN HUSSAIN, Co-Founder and CEO, FUSE AE: "We used to have quite a good charger-to-vehicle ratio, and now I feel like we need to increase those chargers to keep that ratio. So it's good news in general, but these are growing pains."

Be that as it may, BYD seems to be doing well in the UAE where EVs only make up slightly over one percent of the overall car market, but are expected to grow in the years ahead. According to Statista, EV sales reached 250 million dollars in 2023 and are projected to hit over 370 million in 2028.

AD HUANG, General Manager, BYD Middle East & Africa: "For EV segment I think we have 20 to 30 percent market share at this moment. I think in 2025, for EV only, at least we have a 50 percent market share."

JIM STENMAN, Dubai: "China is the closest trading partner of the Gulf. How are you able to tap into that relationship as you expand in the region?"

AD HUANG General Manager, BYD Middle East & Africa "We don't need to apply visa for Chinese and also environment for business here is very transparent and very easy for our ourselves and also our partner corporation. So I think for Chinese brand like BYD and other brands coming to this region, they will grow fast."

The China Innovation Centre could prove vital in that mission, by helping companies tap into local opportunities in the Gulf. This includes NAAS, the first U.S.-listed Chinese EV charging service company, which is expanding into the region, having showcased its technology at COP28 and is exploring partnerships in the Gulf.

JOHN ZHANG, CEO, China Innovation Centre: "We bring these Chinese EV brands from China to Dubai to our center and show it to the client. And sooner or later this concept will be accepted by the other regional countries."

And as those plans are drawn up, BYD, and other Chinese firms in the mobility space, seem to have an edge in a part of the world that's equally as keen to prove its green credentials, as it is to access the latest technology. Jim Stenman, CGTN, Dubai.

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