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Friday, April 12, 2024

BYD Overtakes Tesla as World’s Top Electric Car Company in Q4 2023

BYD, backed by Warren Buffett, surpasses Tesla as the world's leading electric carmaker in Q4 2023, highlighting China's growing dominance in the EV industry.

Chinese automaker BYD has secured its position as the world’s leading electric car company, surpassing Tesla in the final quarter of 2023. BYD reported a record-breaking 525,409 battery electric vehicle (BEV) sales from October to December, while Tesla delivered 484,507 electric cars in the same period.

Despite this quarterly triumph for BYD, Tesla maintained its lead for the entire year, selling 1.8 million electric vehicles, compared to BYD’s 1.57 million electric vehicles and 1.44 million hybrids. The gap between Tesla and BYD narrowed significantly from 2022, signaling BYD’s rapid growth in the electric vehicle (EV) market.

 

The surge in BYD’s sales underscores China’s emergence as a key player in the global EV industry. Supported by robust government backing, Chinese automakers are expanding into international markets, challenging traditional rivals like Volkswagen and Renault.

Beijing’s target is for new energy vehicles (NEVs), including BEVs, plug-in hybrids, and hydrogen fuel cell vehicles, to constitute at least 20% of annual car sales in China by 2025 and become the “mainstream” by 2035. Remarkably, China achieved the 20% goal in 2022, three years ahead of schedule. In the first 11 months of 2023, over 8.3 million NEVs were sold, accounting for more than 30% of total car sales.

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BYD’s success can be attributed to its diversified approach, including battery manufacturing. The company’s in-house production of batteries provides cost advantages, allowing BYD to cut prices sharply. The affordability, coupled with the quality of its blade lithium iron phosphate battery packs, contributed to BYD’s substantial sales growth, with December 2023 alone witnessing a 70% increase in sales.

The company’s battery technology has also drawn praise, with analysts noting its advantages over competitors, including Tesla. BYD’s plans for international expansion include building a new production plant in Hungary and targeting annual sales of about 800,000 cars in Europe by 2030.

While BYD has overtaken Tesla in quarterly BEV sales, Tesla remains a global leader in the premium EV market, selling 1.8 million electric cars in 2023. Despite falling short of Elon Musk’s ambitious goal of two million deliveries, Tesla’s impressive year-end performance marked a 20% increase in sales compared to the same period in 2022. As competition intensifies in the EV market, BYD’s achievement signals a formidable challenge for Tesla to maintain its position as the industry standard.