Home Business & Finance BYD Gains on Tesla with Surge in Sales

BYD Gains on Tesla with Surge in Sales

BYD sales growth
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Beijing: Chinese car manufacturer BYD is quickly narrowing the distance with Tesla in the competition to be the leading electric vehicle (EV) maker in 2024. With a remarkable increase in sales at the end of last year, BYD has positioned itself as a strong contender in the EV market.

Impressive Sales Growth

In December, BYD sold 207,734 electric vehicles, raising its total annual sales to 1.76 million. This surge in sales can be attributed to government subsidies and attractive discounts that have drawn in customers. The news comes just as Tesla prepares to announce its quarterly sales figures, making the competition even more intense.

BYD’s Year-on-Year Growth

BYD’s total vehicle sales surged more than 41% year-on-year in 2024, largely fueled by high demand for its hybrid models. The company has seen significant growth in its home market, China, where competitive pricing and government incentives have encouraged consumers to transition to electric and more fuel-efficient vehicles.

Notably, 90% of BYD’s sales occur in China, where it has extended its lead over traditional foreign brands like Volkswagen and Toyota.

Challenges for Legacy Automakers

The rise of BYD and other Chinese EV manufacturers highlights the struggles faced by legacy carmakers in Western markets. Recently, Honda and Nissan announced they are in merger talks to combat the increasing competition from Chinese firms. Similarly, Volkswagen reached an agreement with the IG Metall trade union to prevent plant closures in Germany amid cost-cutting efforts.

In a notable industry shake-up, Stellantis CEO Carlos Tavares resigned after a boardroom dispute, just two months after the company issued a profit warning.

Financial Performance

In the third quarter of 2024, BYD’s revenues surpassed those of Tesla for the first time.The company announced revenue exceeding 200 billion yuan (about $28.2 billion) from July to September, marking a 24% rise compared to last year. At the same time, Tesla reported a quarterly revenue of $25.2 billion.

Despite this, Tesla continues to lead in overall electric vehicle sales, showcasing the intense competition between the two manufacturers.

Global Expansion and Setbacks

While Chinese automakers, including BYD, have been working to expand their market share internationally, they have encountered resistance in key markets.In October, the European Union introduced tariffs reaching as high as 45.3% on the import of electric vehicles (EVs) made in China. The U.S. has also imposed a 100% duty on Chinese EVs, and further tariffs from the incoming Trump administration are anticipated.

BYD’s efforts to grow its presence in emerging markets faced a setback last month when Brazilian authorities halted the construction of a new factory due to reported poor working conditions. BYD has since cut ties with the construction firm involved and committed to adhering to Brazilian regulations.

Conclusion

As BYD gains traction in the electric vehicle market, the competition with Tesla is expected to heat up in 2024. With impressive sales growth and a strategic focus on both domestic and international markets, BYD is firmly positioning itself as a serious contender in the global EV landscape. The coming months will reveal whether BYD can maintain its upward trajectory while navigating challenges in international markets.

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