BANGKOKJAKARTA, Sept 19 Reuters China39;s electric vehicle giant BYD has been on a tear in Southeast Asia, shooting past rivals including Tesla to take more than a quarter of the share of EVs sold in the region.

Along with attractive prices, BYD39;s early success is based on a pattern of distribution partnerships with large, local conglomerates that have allowed the carmaker to expand reach, test consumer preferences and navigate complex government regulations in the region, officials from three partners and analysts said.

This partnership model, similar to that pursued by Japanese automakers in some Southeast Asian countries decades ago, is helping BYD to build market share rapidly and contrasts with Tesla39;s goitalone distribution though it comes at a cost.

At present, BYD39;s primary focus is on brand proliferation rather than optimising profit margins, said Soumen Mandal, a senior analyst at Counterpoint Research.

By providing local dealers with more lucrative profit margins, BYD can cultivate trust and loyalty, paving the way for broader expansion.

BYD did not respond to questions from Reuters.

The Chinese automaker sold more than 26 of all cars in Southeast Asia39;s small but fastgrowing EV market in the second quarter of 2023 and its Atto 3 model, priced starting at 30,000 in Thailand, was the regional bestseller, according to Counterpoint. Tesla prices the most basic Model 3 from about 57,500 in Thailand.

EVs constituted 6.4 of all passenger vehicle…