BYD exec says biggest challenge to expansion is geopolitics

BYD Exec: Geopolitics Is the Biggest Challenge to Global Expansion Plans

BYD's Global Expansion: Challenges and Strategic Decisions

Geopolitical Uncertainty as a Primary Obstacle

SINGAPORE, Oct 8 (Reuters) - The number one challenge to expansion for BYD is geopolitics, Stella Li, BYD's ​executive vice president, said on Thursday, months after the Chinese company's chairman said it aims to become the world's largest automaker within five years.

Impact of Geopolitics on Business Strategy

• "When we do business, we want to do something and have certainty and visibility then we can control and then we can invest. But with geopolitics, you never understand what's the angle and what they are doing," said Li at the Milken Institute Asia Summit in Singapore.

Market Decisions and Expansion Plans

BYD's Position on the US Market

• Li said the company has decided to not sell passenger cars in the US for now despite being in the US for "a long time" as it is "complicated".

• "We don't have clarity, visibility and stability there so we're saying let's hold and not to go to the US for passenger cars at this moment."

Partnerships and Leadership in Multiple Sectors

• Li said BYD has no plans to partner with other Chinese companies given its leadership in various areas such as storage and solar panels. "We're a leader in multiple businesses, not only cars," she said.

Operational Challenges and Future Outlook

Talent Acquisition and Automation

• Li also said it's been difficult to hire enough people in China and the company hopes to use industrial robots in future.

Stock Valuation and Business Identity

• She said BYD's stock on the Hong Kong exchange was "super undervalued" compared to US companies, given that the company is an engineering firm and not just a car company.

Key Partnerships

Nvidia as a Strategic Chips Partner

• She also said Nvidia remains a "very strong" chips partner for BYD.

(Reporting by Xinghui Kok; Editing by Christopher Cushing and Philippa Fletcher)