By Reeturaj - Jan 02, 2025
Chinese car manufacturer BYD reports a surge in electric vehicle sales, narrowing the gap with Tesla globally. With a substantial increase in total vehicle sales, especially in hybrid cars, BYD's growth challenges traditional automakers. Japanese companies consider mergers, while Volkswagen strikes a deal to prevent layoffs in Germany. Despite surpassing Tesla's revenue in the third quarter, BYD faces resistance in expanding EV sales beyond China, encountering hurdles in major markets. Despite challenges in emerging markets like Brazil, analysts forecast BYD's continued growth in the EV market.
Bloomberg via FMT
LATEST
Chinese car manufacturer BYD has reported a significant increase in electric vehicle (EV) sales, narrowing the gap with Tesla in the global EV market. The company sold 207,734 EVs in December alone, bringing its total annual sales to 1.76 million. This represents a substantial rise compared to the previous year, driven by subsidies, discounts, and intense competition within the Chinese market. Overall, BYD’s total vehicle sales jumped by more than 41% in 2024 compared to the previous year, with hybrid cars being the main contributor to this growth.
The emergence of BYD and other Chinese EV makers has posed a considerable challenge to traditional car manufacturers, who have been struggling in key Western markets. In response, some Japanese companies, such as Honda and Nissan, have begun exploring merger talks to remain competitive. Meanwhile, Volkswagen has reached an agreement with the IG Metall trade union to prevent plant closures in Germany and avoid immediate layoffs. Previously, the German automotive giant warned that it might have to close plants in Germany for the first time as a cost-cutting measure.
In the third quarter of 2024, BYD's revenues exceeded Tesla's for the first time, reaching over 200 billion yuan (approximately $28.2 billion) between July and September, marking a 24% increase from last year. However, Tesla still managed to sell more electric vehicles than BYD during this timeframe. Chinese automakers are attempting to increase their EV sales outside of China but have encountered resistance in major markets such as the European Union and the United States.
As BYD continues to expand into emerging economies, it has faced some challenges, including a recent controversy in Brazil, its largest overseas market. Authorities halted the construction of a BYD factory, citing concerns over worker living conditions. In response, BYD has severed ties with the construction firm involved and reaffirmed its commitment to adhering to Brazilian regulations. Despite these setbacks, BYD's surge in EV sales has established the company as a significant player in the global EV market, with many analysts predicting continued growth into 2025.
