Chinese electric vehicle manufacturer BYD achieved record sales at the end of last year, positioning itself to surpass Tesla as the world’s top EV seller. According to a BBC report, BYD sold a total of 207,734 EVs in December, bringing its 2024 annual sales to 17.6 million units. Subsidies and discounts offered by the company played a significant role in attracting customers.
Tesla is set to release its quarterly sales report on Thursday. While Tesla narrowly outperformed BYD in the previous quarter, the Chinese automaker is quickly closing the gap.
In 2024, BYD’s total car sales grew by 41% year-on-year, driven primarily by the strong performance of its hybrid vehicles. BYD’s primary market remains China, where it has outpaced foreign brands such as Volkswagen and Toyota. Intense competition within China’s domestic market and government incentives encouraging buyers to switch from traditional cars to EVs have further boosted the company’s growth.
While Chinese EV manufacturers are on the rise, traditional Western automakers are facing significant challenges. Last month, Japanese companies Honda and Nissan announced that they are in talks to merge, an effort aimed at remaining competitive against Chinese carmakers.
Meanwhile, German automaker Volkswagen reached an agreement with its workers to avoid immediate factory closures in Germany.
In the third quarter of 2024, BYD surpassed Tesla in revenue. From July to September, BYD reported a 24% increase in revenue, amounting to 200 billion yuan, while Tesla’s revenue stood at $25.2 billion. However, Tesla remains ahead of BYD in EV sales volume.
Chinese EV makers, including BYD, are striving to expand their presence in international markets. Still, high tariffs in the European Union and the United States present significant challenges.
BYD is also focusing on expanding its business in developing countries. However, last month, the company suspended a factory construction project in Brazil following allegations of “slave-like” working conditions for construction workers. BYD has since terminated its contract with the implicated construction firm and affirmed its commitment to respecting Brazilian labor laws.
