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BYD Emerges as Strong Tesla Competitor in China

   

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Chinese electric car company BYD has become a strong competitor to Tesla. The company recently announced that its profits for the third quarter are expected to be more than double compared to last year. BYD is now producing more cars per quarter than Tesla and is the second highest-selling car maker in the world, after Tesla. This shows how quickly China’s auto industry is growing, becoming the biggest exporter in the world. However, tensions between China and other countries, like the US and EU, might make it harder for Chinese electric cars to be sold abroad.

BYD had an advantage from the start because it began as a battery company before moving into making cars. The CEO, Wang Chuanfu, grew up in a poor province in China and started BYD in 1995. The company became known for its rechargeable batteries, which were a cheaper alternative to expensive batteries from Japan. In 2002, BYD became a public company and later bought a struggling state-owned car maker. The Chinese government introduced subsidies and tax breaks to encourage renewable energy, which helped BYD’s batteries to be used in electric cars.

BYD’s success is thanks to making their own batteries, which saves them money because batteries are one of the most expensive parts of an electric car. Competitors like Tesla have to buy batteries from other companies. A report from UBS showed that BYD’s cheapest electric car, the Seagull, is 15% cheaper than Tesla’s base Model 3 sedan made in China. This lower price has made BYD very popular, and it has become the top-selling car brand in China, beating Germany’s Volkswagen.

Although Tesla is known for making electric cars popular in China, BYD is selling more cars than Tesla. In September, Tesla’s sales of Chinese-made electric cars dropped by almost 11%, while BYD’s sales increased by 43% in the same month. However, Tesla is still a favorite brand among young people in China. As tensions between the US and China increase, Tesla is also looking at opportunities in India as another market.

The future of the electric car market looks good, with experts predicting that there will be more incentives for green cars by 2030. Car makers in Europe and the UK are finding it hard to compete, and there are worries that China’s dominance might lead to rules that make it harder for Chinese car makers to sell in Europe. The European Commission is currently looking into the possibility of adding taxes to protect European car makers from cheaper Chinese electric cars. Despite these challenges, BYD’s affordable and eco-friendly cars are becoming popular around the world, especially in Germany where people want cheaper options because of high prices and energy costs.

Original news source: BYD: The top electric car maker that is not Tesla (BBC)

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Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: Have students read the article individually and then write a brief summary of the main points. They should focus on capturing the key information and condensing it into a few sentences.

– Opinion Poll
Instructions: Divide the class into small groups and have them discuss their opinions on the following question: “Do you think Chinese electric car companies like BYD will continue to grow and become more successful in the future?” Each group should come up with at least three reasons to support their opinion and then share their findings with the class.

– Vocabulary Pictionary
Instructions: Write a list of key vocabulary words from the article on the board. Divide the class into teams and give each team a set of vocabulary words. One person from each team will have to draw a picture that represents the word while their team members try to guess what it is. The team with the most correct guesses wins.

– Speed Summarizing
Instructions: Pair up students and assign one person as the speaker and the other as the listener. The speaker will have one minute to summarize the main points of the article to their partner. After one minute, the roles will switch and the listener will then summarize what they heard. The goal is to see how accurately the information is retained and communicated.

– Future Predictions
Instructions: Have students work individually or in small groups to make predictions about the future of the electric car market. They should consider factors like government policies, technological advancements, and consumer preferences. After discussing their predictions, each group should present their ideas to the class and explain their reasoning.

Comprehension Questions:

1. What recent announcement did BYD make about their profits for the third quarter?
2. How does BYD’s car production compare to Tesla’s?
3. What is the ranking of BYD in terms of car sales worldwide?
4. Why did BYD have an advantage from the start?
5. Who is the CEO of BYD and what is his background?
6. What helped BYD’s batteries to be used in electric cars?
7. How does BYD’s ability to make their own batteries give them an advantage over competitors like Tesla?
8. Which car brand is currently the top-selling brand in China?
Go to answers ⇩

Listen and Fill in the Gaps:

(1)______ (2)______ car (3)______ BYD has become a strong competitor to Tesla. The company recently announced that its profits for the third quarter are expected to be more than (4)______ compared to last year. BYD is now producing more cars per quarter than Tesla and is the second highest-selling car maker in the world, after Tesla. This shows how quickly China’s auto industry is growing, becoming the biggest exporter in the world. However, tensions between China and other countries, like the US and EU, might make it harder for Chinese electric cars to be sold abroad.

BYD had an advantage from the start because it began as a battery company before moving into making cars. The CEO, Wang Chuanfu, grew up in a poor province in China and started BYD in 1995. The company became known for its rechargeable batteries, which were a (5)______ alternative to expensive batteries from Japan. In 2002, BYD became a (6)______ company and later bought a struggling state-owned car maker. The Chinese government introduced subsidies and tax (7)______ to encourage renewable energy, which helped BYD’s batteries to be used in electric cars.

BYD’s success is thanks to making their own batteries, which saves them money because batteries are one of the most expensive parts of an electric car. (8)______ like Tesla have to buy batteries from other companies. A report from UBS showed that BYD’s cheapest electric car, the Seagull, is 15% cheaper than Tesla’s base Model 3 (9)______ made in China. This lower price has made BYD very popular, and it has become the top-selling car brand in China, beating Germany’s Volkswagen.

Although Tesla is known for making electric cars popular in China, BYD is selling more cars than Tesla. In September, Tesla’s sales of Chinese-made electric cars dropped by almost 11%, while BYD’s sales increased by 43% in the same (10)______. However, Tesla is still a favorite brand among young (11)______ in China. As tensions between the US and China increase, Tesla is also (12)______ at opportunities in India as another market.

The future of the electric car market looks good, with experts predicting that there will be more incentives for green cars by 2030. Car (13)______ in Europe and the UK are finding it hard to compete, and there are worries that China’s dominance might lead to (14)______ that make it harder for Chinese car makers to sell in Europe. The (15)______ Commission is currently looking into the possibility of adding taxes to protect European car makers from cheaper Chinese electric cars. Despite these challenges, BYD’s affordable and eco-friendly cars are (16)______ popular around the world, especially in Germany where people want cheaper options because of high prices and energy costs.
Go to answers ⇩

Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What is BYD and why is it becoming a strong competitor to Tesla?
2. How do you think tensions between China and other countries might affect the sale of Chinese electric cars abroad?
3. Why do you think BYD had an advantage from the start?
4. How do you think the Chinese government’s subsidies and tax breaks for renewable energy helped BYD?
5. Why is making their own batteries an advantage for BYD?
6. Do you think the lower price of BYD’s electric cars compared to Tesla’s is a big factor in their popularity? Why or why not?
7. Why do you think BYD is outselling Tesla in China, even though Tesla made electric cars popular there?
8. How do you think tensions between the US and China might affect Tesla’s opportunities in India?
9. Why do experts predict that there will be more incentives for green cars by 2030?
10. How do you think the dominance of Chinese car makers might affect European car makers?
11. Why do you think BYD’s affordable and eco-friendly cars are becoming popular in Germany?
12. How would you feel if you had the opportunity to buy a Chinese electric car? Why?
13. Do you think it’s important for car makers to focus on producing eco-friendly vehicles? Why or why not?
14. What do you think are the advantages and disadvantages of owning an electric car?
15. How do you think the future of the electric car market will impact the environment? Why or why not?

Individual Activities

Vocabulary Meanings:

Match each word to its meaning.

Words:
1. competitor
2. profits
3. exporter
4. subsidies
5. popular
6. dominance
7. incentives
8. eco-friendly

Meanings:
(a) Not harmful to the environment; good for nature
(b) The money a company makes after paying all its expenses
(c) Liked or enjoyed by many people
(d) Having control or power over others
(e) Another company that is trying to be better than you
(f) Things that are given to encourage people to do something
(g) A country that sells a lot of things to other countries
(h) Money given by the government to help a company or industry
Go to answers ⇩

Multiple Choice Questions:

1. Which company is becoming a strong competitor to Tesla?
(a) Volkswagen
(b) BMW
(c) Toyota
(d) BYD

2. What is BYD’s advantage over Tesla?
(a) BYD makes its own batteries
(b) BYD has more factories
(c) BYD has a bigger marketing budget
(d) BYD has a longer history

3. Why are BYD’s electric cars cheaper than Tesla’s?
(a) BYD has more advanced technology
(b) BYD has lower labor costs
(c) BYD makes its own batteries
(d) BYD receives government subsidies

4. Which country is the top-selling car brand for BYD?
(a) Germany
(b) China
(c) United States
(d) India

5. What happened to Tesla’s sales in China in September?
(a) They increased by 43%
(b) They remained the same
(c) They doubled
(d) They dropped by almost 11%

6. What are experts predicting for the future of the electric car market?
(a) More incentives for green cars by 2030
(b) Decreased demand for electric cars
(c) Higher prices for electric cars
(d) Less competition from China

7. What are some concerns about China’s dominance in the electric car market?
(a) Increased taxes on European car makers
(b) Rules that make it harder for Chinese car makers to sell in Europe
(c) Decreased demand for electric cars
(d) Higher prices for electric cars

8. Where are BYD’s affordable and eco-friendly cars becoming popular?
(a) United States
(b) China
(c) Germany
(d) India

Go to answers ⇩

True or False Questions:

1. BYD’s cheapest electric car, the Seagull, is 15% cheaper than Tesla’s base Model 3 sedan made in China.
2. BYD started as a solar panel company before moving into making cars.
3. Tensions between China and other countries might make it easier for Chinese electric cars to be sold abroad.
4. BYD’s profits for the third quarter are expected to be less than double compared to last year.
5. BYD produces more cars per quarter than Tesla and is the second highest-selling car maker in the world.
6. Chinese electric car company BYD is lagging behind as a competitor to Tesla.
7. BYD’s success is due to making their own batteries, which saves them money.
8. China’s auto industry is growing rapidly and is now the biggest exporter in the world.
Go to answers ⇩

Write a Summary:

Write a summary of this news article in two sentences.




Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. How has BYD become a strong competitor to Tesla in the electric car market?
2. Why did BYD have an advantage over other car companies from the beginning?
3. What has helped BYD’s batteries to be used in electric cars?
4. Why is BYD’s Seagull electric car cheaper than Tesla’s Model 3?
5. What challenges might BYD face in selling their electric cars in Europe?

Answers

Comprehension Question Answers:

1. BYD recently announced that its profits for the third quarter are expected to be more than double compared to last year.
2. BYD is producing more cars per quarter than Tesla.
3. BYD is the second highest-selling car maker in the world, after Tesla.
4. BYD had an advantage from the start because it began as a battery company before moving into making cars.
5. The CEO of BYD is Wang Chuanfu. He grew up in a poor province in China and started BYD in 1995.
6. The Chinese government introduced subsidies and tax breaks to encourage renewable energy, which helped BYD’s batteries to be used in electric cars.
7. BYD’s ability to make their own batteries saves them money because batteries are one of the most expensive parts of an electric car. Competitors like Tesla have to buy batteries from other companies.
8. BYD is currently the top-selling car brand in China.
Go back to questions ⇧

Listen and Fill in the Gaps Answers:

(1) Chinese
(2) electric
(3) company
(4) double
(5) cheaper
(6) public
(7) breaks
(8) Competitors
(9) sedan
(10) month
(11) people
(12) looking
(13) makers
(14) rules
(15) European
(16) becoming
Go back to questions ⇧

Vocabulary Meanings Answers:

1. competitor
Answer: (e) Another company that is trying to be better than you

2. profits
Answer: (b) The money a company makes after paying all its expenses

3. exporter
Answer: (g) A country that sells a lot of things to other countries

4. subsidies
Answer: (h) Money given by the government to help a company or industry

5. popular
Answer: (c) Liked or enjoyed by many people

6. dominance
Answer: (d) Having control or power over others

7. incentives
Answer: (f) Things that are given to encourage people to do something

8. eco-friendly
Answer: (a) Not harmful to the environment; good for nature
Go back to questions ⇧

Multiple Choice Answers:

1. Which company is becoming a strong competitor to Tesla?
Answer: (d) BYD

2. What is BYD’s advantage over Tesla?
Answer: (a) BYD makes its own batteries

3. Why are BYD’s electric cars cheaper than Tesla’s?
Answer: (c) BYD makes its own batteries

4. Which country is the top-selling car brand for BYD?
Answer: (b) China

5. What happened to Tesla’s sales in China in September?
Answer: (d) They dropped by almost 11%

6. What are experts predicting for the future of the electric car market?
Answer: (a) More incentives for green cars by 2030

7. What are some concerns about China’s dominance in the electric car market?
Answer: (b) Rules that make it harder for Chinese car makers to sell in Europe

8. Where are BYD’s affordable and eco-friendly cars becoming popular?
Answer: (c) Germany
Go back to questions ⇧

True or False Answers:

1. BYD’s cheapest electric car, the Seagull, is 15% cheaper than Tesla’s base Model 3 sedan made in China. (Answer: True)
2. BYD started as a solar panel company before moving into making cars. (Answer: False)
3. Tensions between China and other countries might make it easier for Chinese electric cars to be sold abroad. (Answer: False)
4. BYD’s profits for the third quarter are expected to be less than double compared to last year. (Answer: False)
5. BYD produces more cars per quarter than Tesla and is the second highest-selling car maker in the world. (Answer: True)
6. Chinese electric car company BYD is lagging behind as a competitor to Tesla. (Answer: False)
7. BYD’s success is due to making their own batteries, which saves them money. (Answer: True)
8. China’s auto industry is growing rapidly and is now the biggest exporter in the world. (Answer: True)
Go back to questions ⇧

How about these other Level 3 articles?

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