Hyundai has taken aim at its biggest Chinese rival in Australia, with the brand's local chief sensationally suggesting BYD is dumping cars and losing money, while labelling the auto giant's stratospheric growth unsustainable.
That's the word from CEO and President of Hyundai Australia, Don Romano - not just the company's most senior automotive executive, but also CEO of the brand's Asia Pacific Regional Headquarters - who did not hold back when asked if he was surprised at how quickly BYD had been able to shoot up the Australian sales charts.
"I think if I were to lose money and dump cars, and if my stock price was down 40 per cent, I could do the same," he says.
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"I think there's a big difference between growth at any cost and growth organically, so I'm not surprised. I would be if it was sustainable.
"We're celebrating our 40th anniversary and we're planning another 40 years, so if they're around in 40 years then hats off to them, but at the rate they're going right now?
"It's their strategy, but no, I'm not surprised. I think none of us are. We know what their strategy is, we know why they're doing what they're doing, it isn't the way we would do business, but time will tell."
It's a stunning attack from within the industry, with Mr Romano seemingly referring to BYD's results in China, where, in contrast to Australia, sales have been falling. That appears to be putting downward pressure on BYD's stock price, which has fallen 36.39 on the Hong Kong exchange over the past 12 months.
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Mr Romano's comments seem to suggest that at least some of that growth is being fuelled by selling vehicles here below cost.
Hyundai sales are up a more modest five per cent across the first five months of 2026, though both brands have sold a similar amount of vehicles, with BYD's approximate 33,000 edging Hyundai's approximate 32,000.
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BYD, which maintains a fully-integrated supply chain of Chinese suppliers, has created its own proprietary supply chain finance system called the “D-chain,” through which it issues “e-debt certificates.”
Suppliers can either redeem the certificates upon maturity or transfer them to others within BYD’s supply chain network.
However, such digital instruments are simply bilateral credit agreements between BYD and the supplier.
So how long does it take to get paid? BYD typically follows a net 30 to 60 payment cycle, with the D-chain system adding an additional six to eight months to that period. In practice, that stretches the total payment period to between eight and 10 months.
That approach greatly reduces BYD’s financial pressure, but is to the considerable disadvantage of its suppliers.
This and the system enables BYD to hide ballooning corporate debt are the reasons why the company has reportedly been pressured to abandon its payment system. At the end of last year, BYD has reportedly decided to phase out its payment system, but no details were published.]
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30 years ago Japanese manufacturers were saying the same thing about Korean manufacturers.
50 years ago everyone was saying the same about Japanese manufacturers.
There are drastic difference in nation psychology between Korea, Japan and China. First two strive for perfection, so their cars become best on the market over time. China does not have such drive, they are selling what is finding customer. And because majority prefer cheap shit over good but better car they are going to win.
I mean, Toyota promised their big EV push any year now for more than a decade before finally giving up and buying BYD drivetrains, so I wouldn't hold them up as the way things should be done. There's a downside to just endlessly polishing the same product.