BYD chases Tesla for global EV leadership
Chinese automaker BYD saw a significant sales boost at the close of 2024, positioning itself as a strong competitor to Tesla for the title of the world's top-selling electric vehicle (EV) maker.
In December alone, BYD sold 207,734 EVs, bringing its total annual sales to 1.76 million, driven by subsidies and discounts that attracted customers.
Tesla, which is set to announce its quarterly sales figures soon, has maintained a slight lead over BYD in recent months, although the Shenzhen-based company is narrowing the gap. BYD's overall vehicle sales rose by over 41% year-on-year in 2024, with hybrid vehicles playing a key role in the surge.
The company's growth has been fueled by a booming domestic market in China, where intense competition has driven prices down and government incentives have encouraged consumers to switch to more fuel-efficient vehicles. Nearly 90% of BYD’s sales are in China, where it is outpacing global brands like Volkswagen and Toyota.
BYD’s rise contrasts with the struggles faced by traditional automakers in Western markets. Last month, Honda and Nissan confirmed merger talks to combat the growing influence of Chinese carmakers. Similarly, Volkswagen reached a deal with the IG Metall trade union to avoid plant closures in Germany, while Stellantis CEO Carlos Tavares stepped down following a boardroom clash.
In Q3 2024, BYD's revenue surpassed Tesla’s for the first time, with the company reporting more than 200 billion yuan ($28.2bn) in sales, a 24% increase from the previous year. However, Tesla still maintained a higher volume of EV sales.
While Chinese carmakers, including BYD, have been expanding into international markets, they face significant challenges. In October, the European Union imposed tariffs of up to 45.3% on Chinese-made EVs, and the US has levied a 100% duty on imports. BYD also faced difficulties in Brazil, its largest overseas market, where a factory construction was halted after accusations of poor working conditions. BYD has since severed ties with the construction firm involved and reaffirmed its commitment to comply with local laws.
