A decade ago, the notion that Chinese electric-vehicle maker BYD (Build Your Dream) would overtake Tesla in sales and build reliable cars at affordable prices would have been scoffed at.

Who’s laughing now?

BYD is catching Tesla in sales and is just 3,456 units behind the Elon Musk-US car maker in the last financial quarter. It is poised to move ahead and take the number one spot next year.

China is becoming a serious car manufacturer and has carved out a niche with EVs. BYD is leading the pack although EV sales, particularly in the U.S., are down.

BYD may find it hard to get a grip in the lucrative U.S. market, where it may be shut out due to politics and harsh tariffs. Tesla thrives not only because it manufactures good vehicles but also because it receives handsome subsidies from the U.S. Government. BYD will not be afforded that luxury.

It will have to look to new markets, particularly in the developing world, where its combination of affordability and reliability will make it attractive to motorists there.

Berkshire Hathaway, headed by the world’s greatest investor Warren Buffett identified BYD’s potential and in 2008 took a 10 per cent stake in it for US$230 million. He has always had the ability to pick winners and with BYD he has again. He must be rubbing his hands in glee at the growth of the Chinese automaker.

His former deputy chairman, the legendary Charlie Munger who died this day last month at the age of 99, once said : “The guy at BYD is better at actually making things than Elon is. BYD is one of the most important subjects affecting the technological future of man.”

According to the World Economic Forum, China is the world’s EV leader with 65 per cent of total production and 61 per cent of global sales.

Musk has no intention of giving up his crown just yet and has declared that he wants to sell 20 million Teslas by 2030.

Tesla has a reputation as a high end EV and is yet to position itself in the lower-end volume sales sector.

Last year, BYD launched the Seagull which cost just US$10,000 and is now the fourth best-selling EV in China. Tesla only has one model in the top-10 EV sellers in China.

“ What BYD has done is try to serve a broader market base with more affordable vehicles, in addition to some entry-level luxury vehicles.

“ They take the approach of offering vehicles to where there are the largest number of customers as a strategy to grow volumes. We see through the results that’s worked pretty well,” said Morningstar equity strategist, Seth Goldstein speaking with Business Insider.

The ATL Automotive Group is the representative for BYD in the Caribbean and anticipates a significant uptick in EV sales in the region. It sees BYD as a key partner in that respect.

Speaking at BYD’s launch event in Jamaica at the AC Marriott Hotel in Kingston during June of this year, ATL Automotive Group Executive Chairman Adam Stewart said: “ As we look to the future with the world increasingly embracing electric vehicles we wanted to partner with the best electric vehicle maker which is BYD.

“The world is moving in the direction of clean energy. Electrification is here and it is here to stay. It is something brand by brand, vehicle manufacturers are now doing. It is important that the people of the Caribbean are educated about electric vehicles. The future is electric and BYD will be Jamaica’s and the Caribbean’s number one EV brand.”