BYD : the Chinese manufacturer on the verge of becoming the world’s largest producer of electric cars

While Tesla’s sales are stagnating, Chinese giant BYD is growing by leaps and bounds. The American brand could soon lose its position as world leader in electric vehicles to its Asian rival.

Tesla in trouble, BYD on the rise

Since the launch of the Model S in 2012, Tesla has dominated the global electric car market unchallenged. With over 1.80 million units sold by 2023, Elon Musk‘s brand seemed untouchable. However, its sales are now showing signs of running out of steam.
BYD, on the other hand, is enjoying spectacular growth. The Chinese manufacturer sold 1.57 million electric vehicles in 2023, and its figures continue to rise in 2024. In the second quarter, BYD sold 426,039 electric cars, up 21% on the same period in 2023.

A change of leadership imminent?

The data for the second quarter of 2024 is revealing:

• Tesla: 443,956 units sold (-5% year-on-year)
• BYD: 426,039 units sold (+21% year-on-year)

If this trend continues, BYD could dethrone Tesla as early as this year in terms of annual sales of electric vehicles. In the first half of 2024, the gap is already closing:

• Tesla: 830,766 units sold (-7% year-on-year)
• BYD: 726,153 units sold (+18% over one year)

Opposing strategies

While BYD is investing heavily to develop its range and conquer new markets, particularly in Europe, Tesla seems to be turning away from its core business. Elon Musk is now talking about transforming the brand towards robot cabs and artificial intelligence, to the detriment of car production.
This strategic divergence could accelerate the market shift in favor of the Chinese automaker.

An upheaval in the global automotive landscape

BYD’s rise to prominence is part of a broader context in which Chinese brands are making inroads into the electric vehicle market. In the second quarter of 2024, two other Chinese groups, Geely-Volvo and SAIC, overtook the Volkswagen Group in terms of electric car sales.
Experts predict thatby 2030, one in three electric cars in the world will be made in China. This rapid market evolution represents a major challenge for Western automakers, who must adapt quickly to remain competitive.
In conclusion, the duel between Tesla and BYD is a perfect illustration of the upheavals underway in the automotive industry. While the American brand has played a pioneering role in the democratization of electric vehicles, it now faces fierce competition from China. The outcome of this battle will have major repercussions on the future of the global automotive market.