The Chinese electric car industry wants to leave the Asian country and conquer new markets. And although we sometimes focus on the number of registrations or generous investments, we overlook other types of strategic decisions that have a much greater impact on potential customers.
One of them is the use of vehicles such as taxis and other forms of transport with a driver, such as Uber or Cabify. Aware of the latter, BYD and Uber have reached an agreement for the company to supply 100,000 fully electric vehicles to the passenger transport company in the coming years.
An agreement that is much more than the supply of 100,000 cars
The agreement between Uber and BYD has been confirmed by both companies. The former has published on its website that the Chinese electric vehicle manufacturer will supply 100,000 new vehicles in the coming years, although it does not specify exactly how long this will take. What is stated is that drivers who wish to take advantage of this agreement will have better conditions for the acquisition of the vehicle.
It is clear what BYD’s priorities are in the agreement. The statement leaves two interesting readings. The first is that the United States is left out of the agreement, since this market is not mentioned at any point, but other nearby markets, such as Canada, are.
The second interesting detail is that it is clear that BYD has Europe and Latin America as its main short- and medium-term objectives. Although it is specified that Uber will have BYD cars in Canada, New Zealand, Australia and the Middle East, it is specified that Europe and Latin America will be the two priority markets in this deployment.
It should be noted that BYD has high hopes in Europe. Its cooperation with the European Commission has been high, in order to receive the least possible economic penalty for its car exports and it has confirmed a first production plant in Hungary, which could be followed by a second one aimed at Turkey.
But although the Chinese company believes that Europe is a very powerful market niche to exploit, it still has the challenge of convincing potential customers. Without clearly playing on price, as MG has done, the Chinese manufacturer must demonstrate that they can be trusted and Uber can be a good ally. At the same time, as they recall in Bloombergwill allow it to sell vehicles that are encountering a very difficult and hyper-competitive environment in China.
It should be noted that providing Uber with cars to provide its services will also ensure that the vehicles are on the road for most of the day. This helps demonstrate the reliability of its cars and also serves as a showcase for the manufacturer to make itself known and reach customers who may not be familiar with the brand.
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