Chinese EV maker BYD is closing in on Tesla with rising sales

BYD’s total vehicle sales increased by more than 41% year-on-year in 2024. This growth was mainly due to sales of hybrid cars.

The company has benefited from a surge in car sales in its home market as intense competition drives down prices and government subsidies encourage consumers to replace their old cars with electric vehicles or more fuel-efficient options.

BYD sells 90% of its cars in China, where it has expanded its lead over foreign brands such as Volkswagen and Toyota.

The rise of BYD and other Chinese EV makers contrasts with the challenges faced by some older automakers struggling in key Western markets.

last month, Honda and Nissan have confirmed they are in talks to mergeas two Japanese firms try to fight off competition from the Chinese auto industry.

Also in December Volkswagen has announced that it has reached an agreement with the IG Metall trade union It would prevent factory closures in Germany and prevent immediate forced redundancies.

The German auto industry giant has warned that it will be forced to close factories in the country for the first time to cut costs.

At the beginning of the month, Carlos Tavares, the head of the car manufacturing giant Stellantis, resigned immediately. after a confrontation in the boardroom.

His sudden exit from the company, which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler, comes two months after Stellantis’ profit warning.

In the third quarter of 2024, BYD saw its revenues increase, beat Tesla for the first time.

It generated more than 200 billion yuan ($28.2 billion, £21.8 billion) in revenue between July and September – a 24% increase on the same period last year, and Elon Musk’s company, which had quarterly revenue of $25.2 billion a lot.

However, Tesla still sold more electric vehicles (EVs) than BYD.