BYD rises to challenge Tesla in EV market with record sales

New Delhi: Chinese automotive giant BYD is poised to overtake Tesla as the world's leading electric vehicle (EV) manufacturer, marking a significant milestone with a record sale of 526,000 electric vehicles in the October-December 2023 period.

Announcing the accomplishment, BYD revealed that it sold over 3 million battery electric vehicles (BEVs) and plug-in hybrids throughout the year, representing a remarkable 62 per cent surge in sales compared to the previous year.

Breaking down the figures, the company reported sales of approximately 1.6 million battery EVs and 1.4 million plug-in hybrid EVs in 2023. In contrast, Tesla, a key competitor, estimated sales of about 483,000 electric vehicles in the final quarter and 1.82 million for the entire year, according to industry estimates.

BYD's strategic expansion plans also came into focus as the company announced intentions to establish a manufacturing plant in Hungary, underscoring its commitment to global growth and production.

The global landscape for passenger battery electric vehicles (BEVs) demonstrated robust growth, with a 29 per cent year-on-year increase in sales during the third quarter (July-September). Projections from Counterpoint Research suggest that annual BEV sales are on track to approach nearly 10 million in 2023.

Key players in the BEV market, including Tesla, BYD Auto, and Volkswagen AG, emerged as top-selling groups, contributing significantly to the market's growth and competitive dynamics.

Reflecting on market distribution, senior analyst Soumen Mandal noted, "China maintains a dominant 58 per cent share of the global BEV market, while the US captures around 12 per cent. Germany, as the third-largest BEV market, experienced over 60 per cent annual growth."

BYD's ascent in the EV realm can be traced back to its origins in battery manufacturing, a core competency that has allowed the company to maintain a competitive edge by producing these essential components in-house, thereby reducing costs significantly. This stands in contrast to competitors who rely on third-party suppliers for batteries.

Founded in 1995 in Shenzhen by CEO Wang Chuanfu, BYD initially gained recognition for manufacturing rechargeable batteries, subsequently diversifying into the automotive industry by acquiring Qinchuan Automobile Company, a struggling state-owned car manufacturer. Since 2008, BYD has benefited from investment by Warren Buffett's Berkshire Hathaway, contributing to its sustained growth and market influence.

The impressive sales figures and strategic moves underscore BYD's trajectory towards global EV market leadership, challenging the long-standing dominance of Tesla and reshaping the landscape of electric mobility on a global scale.

BYD Auto Co., Ltd. is the automotive subsidiary of BYD Company, a publicly listed Chinese multinational manufacturing company. It manufactures passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), collectively known as new energy vehicles (NEVs) in China. It also produces battery electric buses and trucks.

BYD Auto was founded in January 2003 by BYD owner Wang Chuanfu, following BYD's acquisition of Xi'an Qinchuan Automobile.