Chinese automaker BYD experienced a significant surge in sales at the close of 2024, intensifying its competition with Tesla for the title of the world’s top electric vehicle (EV) manufacturer.
In December, BYD reported sales of 207,734 EVs, bringing its total for the year to 1.76 million, thanks to a combination of subsidies and discounts that attracted buyers.
Meanwhile, Tesla is set to release its quarterly sales figures later on Thursday, with the US company maintaining a narrow lead in EV sales during the previous quarter. However, BYD has been steadily closing the gap.
BYD’s overall vehicle sales increased by over 41% year-on-year in 2024, largely driven by its hybrid vehicles.
The company’s growth has been fueled by strong sales in its home market, where intense competition has lowered prices, and government incentives have encouraged consumers to transition to EVs or other fuel-efficient models.
Currently, BYD sells 90% of its vehicles in China, where it has been outpacing foreign rivals like Volkswagen and Toyota.
The rise of BYD and other Chinese EV manufacturers contrasts sharply with the struggles of traditional automakers in key Western markets.
For instance, Honda and Nissan recently confirmed they are in merger discussions to counter rising competition from Chinese automakers.
Additionally, Volkswagen reached an agreement with the IG Metall trade union in December to avoid plant closures in Germany and stave off immediate compulsory redundancies, despite earlier warnings of potential shutdowns to reduce costs.
Meanwhile, Stellantis faced internal challenges, with CEO Carlos Tavares resigning abruptly in December following a boardroom dispute. This came two months after the company, which owns brands like Jeep, Fiat, and Peugeot, issued a profit warning.
In the third quarter of 2024, BYD surpassed Tesla in revenues for the first time, posting over 200 billion yuan ($28.2 billion) between July and September—a 24% increase year-on-year.
Tesla, in comparison, reported quarterly revenues of $25.2 billion. Despite this milestone, Tesla retained its position as the leading EV seller.
Chinese car manufacturers have been striving to expand their electric vehicle (EV) sales globally but have encountered resistance in key international markets.
In October, the European Union implemented tariffs of up to 45.3% on Chinese-made EV imports, adding a significant hurdle for these manufacturers in Europe.
Similarly, the United States has imposed a 100% duty on EVs from China, with additional tariffs anticipated under President-elect Donald Trump’s administration.
Despite these challenges, BYD has been increasing its presence in emerging markets. However, its efforts recently faced a setback in Brazil, its largest overseas market.
\Authorities halted the construction of a BYD factory, citing worker conditions described as “comparable to slavery.”
BYD responded by severing ties with the implicated construction firm and reiterated its commitment to adhering fully to Brazilian labor laws and regulations.