BYD's Strategic Market Expansion

BYD, a Chinese electric vehicle manufacturer, is strategically targeting smaller markets like Malta to expand its global footprint amidst heavy tariffs in larger markets such as the U.S. and EU. While the U.S. car market saw over 15 million cars sold last year, Malta accounted for only about 7,200. BYD’s expansion into these smaller markets is likened to a 'chicken rib' strategy, where even small markets can aggregate into significant sales numbers. By focusing on emerging countries lacking established auto industries, BYD aims to mitigate the risks associated with larger market entry barriers.