China electric vehicle giant overtakes Tesla revenue for first time

Chinese electric vehicle (EV) giant BYD has reported record-breaking quarterly revenues, surpassing Tesla for the first time.

Between July and September, BYD recorded over 200 billion yuan ($28.2 billion, £21.8 billion) in revenue—a 24% increase from the same period last year—outpacing Elon Musk’s Tesla, which posted $25.2 billion.

Despite this revenue surge, Tesla still led in EV sales for the quarter.

BYD’s growth is fueled by China’s government subsidies aimed at encouraging consumers to transition from petrol-powered cars to EVs or hybrids.

The company also achieved a record month for sales in the last month of the quarter, solidifying its momentum as China’s top-selling car manufacturer.

However, there is growing resistance abroad to China’s support for domestic automakers like BYD.

This week, the European Union implemented tariffs of up to 45.3% on imports of Chinese-made EVs, adding to the existing 100% tax imposed by the United States and Canada.

These tariffs respond to concerns over alleged state subsidies in China’s automotive sector.

Official data from last week indicated that 1.57 million applications were submitted for a national subsidy of $2,800 per older vehicle traded in for an eco-friendlier model.

These subsidies add to existing government incentives, underscoring China’s reliance on high-tech sectors to boost its slowing economy.

The European Union, China’s largest overseas market for electric vehicles, is particularly concerned as China’s car industry has expanded rapidly over the past two decades.

Brands like BYD have increasingly ventured into international markets, raising fears within the EU that local companies may struggle to compete with China’s lower-priced vehicles.