China’s BYD snatches Tesla’s crown as world’s largest EV maker
January 2, 2024
Tesla has lost its position as the world’s largest electric vehicle (EV) manufacturer to Chinese rival BYD in the final months of 2023.
The report: According to Tesla’s confirmation on Tuesday, Tesla delivered 484,507 cars globally in the last quarter of 2023, which is less than BYD’s reported record sales of 526,400 EVs in December. On a global scale, it is probable that BYD will surpass Tesla’s position as the leading pure EV manufacturer in 2024, reported the Wall Street Journal.
BYD’s sales: BYD, which is backed by American billionaire investor Warren Buffett, experienced significant success in 2023 by selling over 3 million new-energy vehicles, marking a 62% increase from the previous year. While approximately half of these were plug-in hybrids, pure EV sales surged by 73%. Although a substantial portion of BYD’s sales still originates from China, the company has reportedly seen substantial growth in its overseas exports, with a more than threefold increase in the second half of 2023 compared to the same period in the previous year.
The competition: However, the intense competition in China, marked by price wars, is expected to continue this year with 158 new car models, 80% of which will be EVs. Despite the challenges, BYD’s vertically integrated model and reduced raw material prices, such as lithium, could aid in weathering the competition. Chinese carmakers are investing in European facilities, including BYD, which announced its first passenger EV factory in Hungary in December. The Shenzhen-based carmaker aims to replicate its domestic success globally.
Tesla’s future: Tesla’s growth expectations are reportedly slowing, and analysts predict a sales increase of only 20% in 2024, falling short of Elon Musk’s 50% aspirations. Tesla’s future success may hinge on the launch of its $25,000 entry-level model, which is still in development.
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