BYD nears Tesla as world's second-best-selling EV brand in 2024

Chinese electric vehicle (EV) manufacturer BYD has stepped closer to becoming the world's second-best-selling EV brand, following Tesla, by achieving record sales by the end of 2024. The company sold 207,734 EVs in December, bringing its total annual sales to 1.76 million.

Government incentives and discounts played a significant role in this increase. Tesla is expected to release its sales data for the same period on Thursday.

HYBRID VEHICLE SALES LEAD THE GROWTH

BYD's total vehicle sales in 2024 saw a more than 41% increase compared to the previous year, with hybrid vehicle sales contributing significantly to this rise. Intense competition in China led to price reductions, allowing consumers to replace their old vehicles with more eco-friendly EVs.

BYD conducts 90% of its sales in China, where it strengthens its leadership position against foreign brands like Volkswagen and Toyota.

RISE OF CHINESE BRANDS IN GLOBAL MARKETS

The rise of BYD and other Chinese EV manufacturers contrasts with the challenges faced by Western automotive giants. Last month, Honda and Nissan announced merger talks to compete with Chinese producers.

German automaker Volkswagen reached an agreement with the IG Metall union to prevent the closure of its factories in Germany.

BYD'S FINANCIAL PERFORMANCE CHALLENGES TESLA

In Q3 of 2024, BYD's revenue grew by 24%, reaching 200 billion yuan ($28.2 billion), surpassing Tesla's performance for the first time.

However, Tesla still sold more electric vehicles than BYD.

CHALLENGES IN INTERNATIONAL MARKETS

Although BYD is attempting to increase its sales outside China, it faces obstacles in some major markets. In October, the European Union imposed import tariffs of up to 45.3% on Chinese-made EVs. The United States also imposed a 100% tariff on EVs imported from China.