DETROIT As Chinese carmaker BYD Auto expands its reach and product portfolio with a pickup truck, a shark is circling one of the largest profit pools for American automakers worldwide.
The BYD Shark might be mistaken for an American-made product if it didn’t have the vehicle’s branding emblem. It resembles a smaller Ford Motor pickup in many aspects.The Chinese-built truck has striking visual similarities to a Ford Explorer combined with the well-liked F-150, which has been the Ford brand’s best-selling truck model in the United States for 48 years.
Global automakers are afraid that Chinese competitors, such as Warren Buffett-backed BYD, could flood their markets and undercut domestic production and vehicle prices to the detriment of their own auto industries. This is similar to BYD’s Seagulla small all-electric hatchback, which starts at just 69,800 yuan (less than $10,000).
Although BYD hasn’t disclosed any intentions to sell the Shark in the US, it has expanded into nations like Australia, Brazil, and Mexico where pickup trucks are sold by General Motors, Ford, and Toyota.
With millions of units sold each year, pickup trucks constitute the mainstay of the Detroit automakers’ product line in the United States. Additionally, they have grown in significance for Toyota both domestically and internationally.
Terry Woychowski, president of automotive at Caresoft Global and a former chief engineer of GM’s full-size trucks, stated that when you look at the revenue-generating value that these products provide to manufacturers, it’s the franchise. The market has generated a lot of interest in this vehicle.
About 40 Chinese-made EVs from companies like BYD, Nio, and others have been dismantled and inspected by Caresoft, an engineering benchmarking and consulting business.
The Michigan-based business examines every component of a car, including the motors, battery casings, seats, bolts, and locks, both digitally and physically. It then ascertains how its customers, primarily automakers and suppliers, might increase productivity and reduce expenses in their goods.
Drawing attention
The BYD Shark has caught the attention of automakers like Ford and Toyota that mostly depend on sales of smaller pickup trucks worldwide.
The stuff is excellent. It sold nicely. When questioned by CNBC earlier this month about the BYD Shark, Ford CEO Jim Farley stated that the company is attempting to sell in large quantities in Mexico while also localizing it in Thailand. We must compete if we wish to maintain our current level of worldwide dominance in pickups.
For many years, Toyota’s Hilux has been the best-selling truck outside of North America, but Ford’s F-150 is still the best-selling truck in the US. Since its 1968 launch, Toyota has sold 19.8 million Hilux trucks, setting a record of 851,000 in 2022.
In response to a question regarding Chinese rivals earlier this month, Toyota Chairman Akio Toyoda stated that the business must be ready to meet the demands of international markets regardless of its rivals.
We strive to be the finest in town while keeping each market’s demands in mind. At a media roundtable at the CES tech convention, Toyoda stated, “So that will be the strategy that we have.”
According to reports, BYD exported over 10,000 BYD Sharks in 2024. It is anticipated that these sales would rise in the future, particularly as the business gets ready to enhance output.
According to BofA Securities, BYD’s percentage of Chinese auto exports increased from 2% in 2022 (less than 56,000 units) to 8% in 2024 (350,500 units).
BYD’s global sales had increased to around 4.3 million vehicles in 2024, up from about 3 million the previous year, thanks in part to exporting. According to Goldman Sachs, Wall Street economists predict that number will rise to almost 5.5 million this year.
Goldman Sachs analyst Tina Hou stated in an investor note dated January 14 that BYD is beginning to enter the foreign market with attractive (very competitive, innovative) products, which we anticipate could become a second growth driver for the company, contributing 31% of incremental vehicle sales volume over 2022-2030E.
It is anticipated that the BYD Shark will increase the carmaker’s revenue and earnings. With a plug-in hybrid powertrain that blends electric vehicle components including a battery and electric motors with a tiny 1.5-liter internal combustion engine, this midsize pickup truck has a lesser market in the United States than it does worldwide.
With a range of almost 500 miles between the battery and engine, the car may run entirely on electricity or use the engine to power its batteries and electric motors, according to BYD.
In Mexico, the Shark starts at roughly 899,980 pesos ($44,000. Although it is significantly more expensive than BYD’s other models, it is still substantially less expensive than many hybrid or all-electric trucks available in the US. It is comparable to the midrange Ford Ranger and Toyota Tacoma midsize pickup truck prices in Mexico.
Benchmarking Ford, GM
When driving the BYD Shark on private land in Michigan with a mixture of smooth and rough pavement, the pickup truck performs admirably. It accelerates quickly, but not as quickly as GM’s or Tesla’s all-electric pickups. Although it’s quiet, the handling and ride could use some work as they feel a little less sophisticated than those of modern American trucks.
According to Woychowski, the Shark’s overall build quality is remarkable, but it also has some oddball features and certain best practices in common with current Ford and GM trucks.
A few common practices and features include the exterior design’s general resemblance to the F-150, including its lighting and pullout tailgate step; the Toyota-like interior design of the front seat; and several production features borrowed from other trucks. The vehicle’s chassis, or backbone, is most obviously bathed in wax. According to Woychowski, GM has been using that procedure to lessen corrosion for decades.
You can determine who and where they benchmarked. Woychowski said as he examined the car’s undercarriage. Toyota is over there, GM is under there, and Ford is back here.
This is not to argue that the car isn’t special. The Shark’s interior design and, most significantly, its hybrid drivetrain are unlike anything now available in the United States, even if Caresoft still has to disassemble the car to better understand its components and construction methods.
For instance, bungee cords are used to support the vehicle’s back bench seat when folded, and some battery technologies are positioned behind the back seats, removing storage space.
In reference to the back seat, Woychowski remarked, “This is actually quite poorly done.” I would keep an eye on this area. They probably fix this up quite well.
A very straight frame, an excessive number of jack lifts beneath the vehicle for lifting it, an over-engineered rear suspension with two control arms (instead of one each), and the use of hydraulic arms for the large tailgate are other difficult-to-spot oddities, he claimed.
According to Woychowski, customers have shown a special interest in Chinese automakers, such as BYD, due to their rapid expansion and ability to create new products and enhance current models.
Regarding the Shark, Woychowski stated, “It’s a credible truck.” They did a few things really well. They have a few options for cleaning it up, but it’s not a difficult task.
This report was provided to by Michael Bloom of CNBC.
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