Image: BYD
The EV maker based in China is likely to beat Tesla in its Q4 sales for the first time, according to analysts.
Chinese carmaker BYD sold more than 3m vehicles in 2023, marking a 62pc increase year on year.
Posting its production and sales volume yesterday (1 January), the company saw its highest percentage increase in battery electric vehicles, with a 73% year-on-year increase, rising from more than 911,000 in 2022 to more than 1.5m in 2023. Plug-in hybrid electric vehicle sales increased from about 946,000 in 2022 to more than 1.4m in 2023.
While Tesla has yet to post its end-of-year sales and production figures, industry analysts expect the number of EV sales for the year to be around 1.8m. Notably, analysts also expect BYD’s Q4 sales of battery electric vehicles (BEVs) to top Tesla’s Q4 sales for the first time by a clear margin.
BYD has been gearing up in the EV space for a while now as Tesla has struggled to meet expectations. The Chinese EV maker knocked Tesla off its pedestal as the world’s leading manufacturer of BEVs in July 2022.
At the time, Tesla likely suffered due to the shutting down of its Shanghai manufacturing plant in March of that year following a surge in Covid-19 cases. BYD, on the other hand, has factories in regions that did not suffer extended lockdowns at the time.
Taking on Tesla
In November 2023, BYD also produced its six millionth ‘new energy vehicle’ – a term used in China to describe vehicles that are fully or predominantly powered by electric energy. In December 2023, the Chinese company also announced it will build a new car factory in Hungary – as part of it’s plan to dominate the European EV market by the end of the decade.
A key point to BYD’s success in the EV space is in its battery production. BYD makes it own batteries where other competitors rely on third-party suppliers.
And while Tesla also produces its own batteries, the Elon Musk-led company has been falling short of analysts’ expectations over the last year. The US carmaker has also faced a federal investigation which saw a recall of nearly all its vehicles in the US at the end of last year due to safety concerns about its Autopilot feature.
BYD isn’t Tesla’s only Chinese competitor either. Last week (28 December), smartphone maker Xiaomi announced plans to become one of the world’s top five automakers, unveiling its first electric car.
Earlier this year also saw Xpeng acquiring the smart EV assets of ride-hailing giant Didi to launch a new mass-market brand following a $700m investment from Volkswagen.
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