BYD Co., the Chinese electric vehicle (EV) manufacturer, experienced a significant sales surge in the final months of 2024, bringing its total passenger car sales to 4.25 million. This impressive performance positions BYD as a leading contender against Tesla Inc. for the title of the world’s top-selling EV maker in 2024.
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BYD, which ceased production of solely gasoline-powered vehicles in 2022, achieved a record-breaking December with 509,440 plug-in hybrid and pure-electric passenger vehicle sales. This figure encompasses 207,734 pure EVs, contributing to a total of 1.76 million battery-electric car sales for the year. Overall, BYD’s annual sales saw a substantial 41% year-over-year increase, fueled by government subsidies and strategic incentives for buyers.
BYD’s Success Contrasted with Struggles of Legacy Automakers
BYD’s remarkable ascent contrasts sharply with the challenges faced by established automakers such as Nissan Motor Co., Volkswagen AG, and Stellantis NV. These Western brands have experienced declining sales in China and are grappling to keep pace with the accelerating EV transition. Meanwhile, BYD’s success underscores its strong position in the rapidly evolving global automotive market.
Tesla’s Fourth-Quarter Performance and the Race for EV Dominance
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Tesla’s fourth-quarter sales figures, expected later this week, will be crucial in determining the 2024 sales leader. To achieve its projected “slight growth” to 1.81 million annual deliveries, Tesla needs to have delivered at least 515,000 EVs in the final quarter. This would represent a record-breaking quarter for the company. Current analyst estimates place Tesla’s deliveries slightly below this target, at around 510,400. While BYD has trailed Tesla in quarterly sales for most of 2024, its strong year-end performance significantly narrows the gap. BYD previously surpassed Tesla in quarterly sales only once, in the fourth quarter of 2023. The final sales figures will reveal whether BYD managed to outperform Tesla in annual sales for 2024.
BYD’s Global Impact and Future Outlook
BYD’s strong sales performance solidifies its position among the world’s leading automakers, potentially surpassing Ford Motor Co. and Honda Motor Co. in annual sales. This success is projected to propel BYD’s annual revenue beyond $100 billion for the first time.
Driven primarily by robust domestic sales in China, BYD’s growth has also been supported by government incentives aimed at promoting the adoption of EVs. However, the company’s international expansion plans have encountered challenges, particularly in the European Union due to imposed tariffs on Chinese EVs. Furthermore, BYD faces scrutiny in Brazil, one of its key overseas markets, over allegations of labor violations at a new EV factory construction site. Despite these obstacles, BYD’s 2024 sales figures demonstrate its resilience and potential for continued growth in the global EV market.
