BYD And Ayala: An Electrified Force To Be Reckoned With

A couple of months ago, BYD Philippines, under the helm of Ayala’s AC Motors, took us along with other select media to a trip to Shenzhen for the regional preview of the BYD Seal, among other vehicles. But apart from having the opportunity to get behind the wheel of the Seal, the trip was also a showcase of how BYD has evolved through the years to become the world’s biggest manufacturer of plug-in cars (which combines plug-in hybrid and electric vehicles). Even more so is the realization of how BYD and Ayala are indeed a match made in heaven when it comes to the electrification of the Philippines.

Building A Dream

BYD started in 1995–surprisingly the same birth year as me, making this company just as old as yours truly, but with more achievements within that same time frame. The company initially made nickel-cadmium (NiCd) batteries that were more affordable than key competitors at the time. By July 2002, it became the world’s leading NiCd battery manufacturer, and in that same year, BYD started making automobiles.

BYD acquired Shaanxi Qinchuan Auto Company Limited (Qinchuan Auto) for ¥250 million, and in 2005, the first BYD model, which is called the F3, was born. The plug-in hybrid electric vehicle (PHEV) F3 DM eventually followed suit in 2008, and its first pure electric vehicle (EV), the e6, came out in 2009. This would be followed suit by popular models that put BYD on the global automotive map, such as the Tang and the Han, both of which are available as a PHEV or pure EV.

Just recently, BYD have released their full-year 2023 sales numbers. Safe to say, the Chinese electrified vehicle manufacturer is on its way to dominance as it sold more than 3 million vehicles last year–all of which are electrified to varying degrees. This enabled the company to also enter the top 10 best-selling car brands in 2023, and that success can be attributed to both innovation as well as having a robust supply chain.

Batteries Make The World Go Round

BYD’s rapid growth to eventually becoming the world’s biggest manufacturer of plug-in cars, which are classified in China as New Energy Vehicles (NEVs), is a natural evolution of the company considering its battery expertise. In fact, you may want to give your laptop a look because it’s probably powered by a BYD battery. Today, BYD is known for its Blade lithium-iron-phosphate (LFP) battery, which is more durable and cheaper to produce than a lithium-ion battery. In addition, LFP batteries are a lot safer, since when punctured, the battery doesn’t burst into flames.

These LFP batteries have been fitted to several recently-unveiled BYD vehicles, and that includes cars sold in the Philippines like the affordable Dolphin and the Atto 3 electric crossover. Both models are priced within the P1.3 to P2 million mark, making these very competitively priced and right smack in the typical price range for a brand-new family car.

Part of why BYD’s EVs and PHEVs are so competitively priced is because of how BYD is such a vertically integrated company. BYD makes most of its vehicles’ components in-house as opposed to the industry standard habit of outsourcing them. This includes the transmission, the engines (if it’s a PHEV), and even the sensors for the advanced driver-assistance systems (ADAS). Heck, it even makes its own braking systems (what Brembo?) and chassis components.

Due to this vertical integration, it owns most of its supply chain. In turn, BYD has also become a supplier to other automakers, and yes, that includes giants like Toyota, whose BYD Blade battery is what powers the Chinese market bZ3 electric sedan.

Where Ayala Fits Into The Electrification Picture

Now, this is where BYD and Ayala are practically a match made in heaven. Thanks to the sheer scale of the Filipino conglomerate, which is combined with the fact that Ayala has the ability to also be a parts manufacturer through AC Industrials and IMI Corporation, BYD has secured a local partner that’s ready to speed up the development of the EV industry in the Philippines.

Not only that, but Ayala also has an energy company called ACEN, which in terms of raw numbers is an impressive company. How does 4,000 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia, along with a renewable energy share of 98% (which is among the region’s highest) sound? Yeah, if there’s one conglomerate that can make EVs both feasible in terms of cost and economics, as well as truly environmentally friendly through energy generation using renewables, that would be Ayala.

Oh, and you also have to remember that Ayala is primarily known for its real estate and land development. With the EVIDA law in effect, private and public buildings and establishments with more than 20 parking slots, five percent of the total should be dedicated EV charging slots. Once again, this will be extremely easy to Ayala to do, since they can create an entirely new residential area that’s already future-proofed and ready to accept a mobility lifestyle centered around EVs.

“Private and public buildings and establishments constructed after the effectivity of the EVIDA and pursuant to the National Building Code of the Philippines shall designate dedicated parking slots for the exclusive use of EVs to include LEVs: Provided, That the number of dedicated parking slots shall be proportional to the total number of parking slots within the building or establishment as provided in the CREVI: Provided further, That if there are twenty (20) or more parking slots, there should be at least five percent (5%) dedicated parking slots for EVs of the total number of parking slots within the building or establishment: Provided finally, That existing private and public buildings and establishments shall comply with the foregoing requirements within the timeframe indicated in the CREVI.”

Of course, with Ayala’s AC Motors, the company is also more than ready to bring the BYD brand closer to where it matters the most–the Filipino customer. With every nook and cranny in the EV development covered by Ayala, owning a BYD–or any EV for that matter, should only get increasingly easier in the long term. This is a future where we’re headed, after all, and it’s a future that BYD and Ayala could easily lay the ground for in the coming years.