China’s EV leader BYD posts record sales in 2024

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China’s best-selling automaker BYD sold a record number of electric cars and hybrids globally last year, even as competition in its home market was fierce.

Tesla’s biggest competitor 4.3 million EVs and hybrids will be sold in 2024, up from an earlier target of 3.6 million, the company said in a statement in networks.

BYD sold more than 1.76 million pure EVs last year, closing the gap on Tesla in the race to be the world’s best-selling EV company in 2024. Tesla’s fourth-quarter sales figures, due later Thursday, will should reach 515,000 to reach its 2024 goal of 1.81 million EVs sold.

Li Auto, China’s first profitable EV start-up, Stellantis-backed Leapmotor and smartphone maker Xiaomi also exceeded their targets, selling 500,000, 290,000 and 135,000 EVs in 2024 respectively.

China is expected to sell more EVs in 2025 for the first time, including pure battery-powered vehicles and plug-in hybrids, than vehicles with internal combustion engines, thanks to hundreds of billions of dollars in government subsidies over the past decade.

Automakers have also been helped by a trade-in scheme launched in April last year that allows consumers to get 20,000 rubles ($2,740) to trade in an old gas-powered car for an EV.

But while some of the bigger names performed well, intense competition and a prolonged price war has put many players under pressure.Dozens of companies such as Xpeng and Nio have missed their sales targets even as they posted growth.

“Competition in the market is very fierce,” said Yale Zhang, CEO of Shanghai-based consultancy Automotive Foresight.

Consolidation is already reshaping the world’s largest electric power market. Once high-flying startups such as HiPhi and Baidu-backed Jidu have collapsed in the past year. Auto conglomerate Geely merged its sub-brands Zeekr and Lynk & Co” to “improve operations”.

“Economies of scale are more important than ever for automakers as the industry transitions to electric vehicles,” Zhang added.

Analysts also noted that the entry of tech groups like Xiaomi and Huawei has deepened competition.

Xiaomi had sold more than 135,000 units of its sole model, the SU7 sedan, launched in late March, as of December 31. Founder Lei Jun said on Wednesday that the group aimed to more than double that figure by 2025. a year, delivering 300,000 EVs.

“The country’s electricity market is huge, so even a single sector can see significant demand,” said Li Yanwei, a member of the expert committee of the China Automobile Dealers Association.

“Xiaomi’s SU7 sedan created a lot of buzz, capturing consumer demand for a personalized model [car] at an attractive price.”

President Xi Jinping acknowledged the industry’s success in his New Year’s address. “[China’s] The annual production volume of new energy vehicles has exceeded 10 million units for the first time,” Xi said in a televised speech on Tuesday.