China EV maker BYD closes in on Tesla as sales jump
BYD, a Chinese car manufacturer, increased its sales by 5 % at the end of last year as it battles with Tesla to become the top-selling electric vehicle ( EV ) manufacturer in the world by 2024.
The firm says it sold 207, 734 EVs in December, taking its yearly total to 1.76 million, as incentives and discounts helped get customers.
It comes as Tesla is scheduled to release its own monthly sales numbers afterwards on Thursday.
The US electric vehicle manufacturer had a sluggish lead over BYD in the previous third, but the Shenzhen-based company has been closing the gap.
BYD’s total vehicle sales jumped more than 41 % in 2024, year-on-year. Profits of its hybrid cars primarily contributed to the boom.
As powerful competitors and government incentives caused consumers to exchange their old vehicles with Vehicles or other more fuel-efficient options, the company has benefited from a rise in auto sales in its home business.
In China, BYD has a lead over international brands like Volkswagen and Toyota, which means that it sells 90 % of its vehicles.
The success of BYD and another Chinese EV manufacturers contrasts with the difficulties faced by some established car manufacturers, who have struggled in big European markets.
Last month, Honda and Nissan confirmed that they were holding merger talks, as the two Japanese firms seek to fight back against competition from the Chinese car industry.
Also in December, Volkswagen announced it had reached a deal with the IG Metall trade union which will avert plant closures in Germany and avoid immediate compulsory redundancies.
The German car manufacturer had earlier warned it might have to shut down plants in the nation for the first time in an effort to lower prices.
Earlier in the month, the boss of car making giant Stellantis, Carlos Tavares, quit with immediate effect following a boardroom clash.
His dramatic exit from the business- which owns brands including Vauxhall, Car, Fiat, Peugeot and Chrysler- came two months after Stellantis issued a gain notice.
In the third quarter of 2024, BYD saw its revenues soar, beating Tesla’s for the first time.
It posted more than 200bn yuan ($ 28.2bn, £21.8bn ) in revenues between July and September- a 24 % jump from the same period last year, and more than Elon Musk’s company whose quarterly revenue was$ 25.2bn.
However, Tesla still sold more electric vehicle ( EVs ) than BYD.
Chinese automakers have been attempting to increase sales of their electric vehicles outside the nation, but some big businesses have reacted in favor of their efforts.
In October, European Union tariffs of up to 45.3% on imports of Chinese-made EVs came into force across the bloc.
The US has also imposed a 100% duty on EVs from China and President-elect Donald Trump is expected to impose further tariffs on imports.
However, BYD has been expanding its grip in emerging markets.
Last month, it faced a setback in Brazil – its largest overseas market – with authorities halting the construction of a BYD factory, saying workers lived in conditions comparable to “slavery”.
BYD claimed to have cut ties with the included construction company and maintained a “full compliance with Portuguese legislation.”