In case you missed it in the May/June issue here's our interview with BYD's Scott Maynard.
Chinese car manufacturer BYD is the global phenomenon that has stormed into the Australian marketplace racking up huge sales from the get go. Paint & Panel talks to executive general manager, Scott Maynard.
Dolphin is kind of a weird name for a car and while BYD (Build Your Dreams) is clearly inspired by the ocean (there’s also Ocean M, Sea Lion, Seal and Sea Gull models) this Chinese behemoth is certainly not all at sea. It is the biggest selling ‘new energy’ car manufacturer on the planet. Currently it’s pipped at the post by Tesla as the best selling EV manufacturer but is confident that it can overtake the US brand this year.
The barrier for many drivers around the world for EVs (after range anxiety) has undoubtedly been the high price tag. Enter BYD who has produced stylish, 5-Star ANCAP-rated models at ICE-car comparable prices.
Currently BYD only produces EVs however Maynard says that there’s some models in the works that will employ a technology called DMI which is essentially a plug-in hybrid.
Unusually, BYD started to set up its own approved repair network shortly after it came to market. That might have something to do with Maynard’s background with two manufacturers that have a long tradition of approved networks and ensuring those networks are properly trained and equipped. Maynard was with Audi for over 12 years and Jaguar Land Rover for over six in a variety of roles including aftersales and customer service.
It’s fair to say that BYD has a blatantly aggressive growth strategy. “It’s a strategy that’s seasoned – occupy the top 10, then the top five and possibly even a top 3 position in the future.” Maynard says. “The aim is to rapidly grow a network of retailers to be able to represent the brand and service the product as well. So it’s a strategy of quite extraordinary growth and movement into a position of a top selling brand in Australia; from an unknown to a household name.
“I don’t know that any brand has been able to enter the market and sell 10,000 units in its first year with a product no one had heard of and with only one model.”
The brand is now getting close to 20,000 unit sales in Australia. “The volume is just extraordinary - the last two months have been record months back to back. February and March are not normally the months you post a record result.”
BYD, like Tesla, aims to be a non-traditional brand, shunning the conventional dealership model. “The look and feel is quite different and so it’s a dealer by any other name but they are called Brand Experience Centres and if you stroll into one it doesn’t look or feel anything like a car dealership.”
Customers have the option of at totally online purchase or they can be presented with their car at the Brand Experience Centres (BECs). Either way the transaction is online.
Approved repairer network
The BYD approved collision repair network includes a lot of Tesla repairers. “It was a decision that was taken at the time to piggyback off the EV training already completed and the charging infrastructure that had been invested in. That was the quickest and easiest solution at the time. However, the brand is now looking to diversify its portfolio of approved repairers. So, it’s temporarily just put a freeze on appointments to just step back and revisit what the model looks like and how they should set out the network logically in the future.
“As we now start to consolidate the network we are looking at where the car parc is starting to bloom,” Maynard says.
BYD will be looking for new repairers to add to its network and they won’t necessarily be Tesla approved. And while Tesla has begun to set up its own collision repair shops this isn’t something that BYD is currently considering.
“This brand moves really fast but building OEM owned-shops is not a model I’ve followed in the past. There’s the opportunity for BECs to do some very minor collision repair but it’s unlikely that any of them are going to move heavily into panel repair. It’s just not their A game.”
Maynard jumped at the opportunity to work with BYD. “It’s very rare that you get an opportunity to be involved in a brand from ground level up to introduction in Australia that’s backed by such an enormous business globally. So it’s a lot of fun – there’s never a dull moment.”
Repair costs
While the BYD models are well priced the cost of repair and the high insurance premium of any EV is an industry-wide issue.
“I think it’s important for us to be able to settle on an average cost of repair that’s more commensurate with what you would expect from a traditionally powered vehicle were it to be in a similar accident.
“At the moment the repair costs for EVs is substantially more. Our repair costs are grouped into a category that is really more befitting of a high end luxury car. From a cost of ownership perspective that’s having the effect of pushing insurance premiums high and if that continues, it’s going to cause us significant challenges in the future.
“We all need to work together to fix that. It will come through things like information sharing in terms of repair methods, parts pricing (which I think BYD have nailed), and then just working together on how we can repair vehicles better and faster and with less cost. Not less margin, just less cost, so that we can make sure that this business remains sustainable.”
It’s well known that many EVs suffer total loss if the battery is damaged in an accident. “The battery, particularly at retail pricing or even insurance pricing still represents such a significant part of the cost of the vehicle. Having said that, the cost of batteries is definitely coming down and what the batteries can withstand is also improving. The blade battery technology that we find in BYDs is not as sensitive to a touch, they can handle a few minor hits and taps.
“We don’t necessarily have the same insistence on replacement at repair if, for example, the bottom cover has got a gouge in it, like some of the other brands. So it’s not always the case that it needs replacing.”
With such a huge growth curve Maynard’s team have had to sprint to set up the infrastructure needed to support the vehicle parc. A National training manager has recently been appointed and the current training available is under scrutiny for improvement and expansion.
It’s clear that BYD is here to stay in Australia and that if you haven’t already repaired one of their models, you’d better make sure you are equipped to do so, and fast.