BYD overtook Tesla to become the world’s biggest electric car company in the final quarter of 2023.
In a stunning turn of events, BYD overtook Tesla to become the leading electric car company globally in the last quarter of 2023. In the final three months of the year, BYD sold a record-breaking 525,409 battery electric cars (BEVs), surpassing Tesla’s delivery of 484,507 vehicles, as per a stock exchange filing.
Although BYD sold 1.57 million electric cars and 1.44 million hybrids, while Tesla sold 1.8 million electric cars, the difference between the two shrank considerably over the course of the year. Tesla’s lead in 2023 was roughly 230,000 units, a considerable drop from the 400,000-unit differential in 2022.
Warren Buffett’s backing of BYD’s explosive expansion is indicative of China’s leadership in the electric vehicle (EV) market.Traditional rivals like Volkswagen and Renault are concerned by the nation’s strong government support and its automakers’ entry into the European market. Even now, EU politicians are looking at Chinese state subsidies.
China’s aggressive ambitions demonstrate their commitment to electric vehicles. Beijing hopes that by 2025, new energy vehicles (NEVs), which include BEVs, plug-in hybrids, and hydrogen fuel cell vehicles, would account for at least 20% of all new cars sold in China. The government expects NEV sales to overtake conventional car sales by 2035.
China’s shift to electric vehicles has advanced remarkably, meeting the 20% objective three years ahead of schedule in 2022. The target of having 50% of all vehicles be electric by 2035 may also be accomplished sooner than anticipated, as 8.3 million new energy vehicles were sold in the first 11 months of 2023—more than 30% of all automobile sales.
Miao Wei, a former minister of China’s Ministry of Industry and Information Technology, indicated that China is embracing green technology at a faster rate and that the 50% NEV penetration objective would be attained by 2025 or 2026 at the latest.
According to researchers from Natixis Asia, China’s supply chain management, cost-effective labor, and market size are the reasons for its supremacy in the global EV business.Chinese EV manufacturers have been able to expand both locally and globally thanks to the government’s infrastructural investment and subsidies, as well as the country’s first-mover advantage.
Chinese EV manufacturers have been able to expand both locally and globally thanks to the government’s infrastructural investment and subsidies, as well as the country’s first-mover advantage.
The market for electric cars has grown extremely competitive despite China’s leadership position, which will result in a nasty pricing war in 2023. A price war broke out as automakers attempted to offset a drop in demand amidst China’s economic recession, which had an effect on the profitability of numerous businesses. Tesla and many other automakers responded by lowering prices, which increased sales but threatened the profitability of the sector as a whole.
The market for electric cars has grown extremely competitive despite China’s leadership position, which will result in a nasty pricing war in 2023. A price war broke out as automakers attempted to offset a drop in demand amidst China’s economic recession, which had an effect on the profitability of numerous businesses. Tesla and many other automakers responded by lowering prices, which increased sales but threatened the profitability of the sector as a whole.
Chinese car manufacturers, grappling with a slowing domestic market, have turned to international expansion. BYD, for instance, participated in a major car show in Germany in September, expressing its ambition to double the number of dealer partners in Europe in 2023 and targeting overseas sales of 250,000, a substantial increase from approximately 56,000 in 2022. Highlighting its commitment to international growth, BYD announced the construction of an electric vehicle factory in Hungary, marking its first passenger car plant in Europe. This move aligns with the broader trend of Chinese carmakers venturing beyond mainland China to establish a presence in Europe, Australia, and Southeast Asia.
The dynamic landscape of the electric car industry witnessed BYD’s remarkable ascent, momentarily surpassing Tesla in the final quarter of 2023. China’s robust government support and the aggressive expansion strategies of its carmakers have positioned the country as a driving force in the global electric vehicle market.
Mworldnews.com