Chinese automaker BYD has achieved a significant milestone, edging closer to surpassing Elon Musk’s Tesla as the world’s leading electric vehicle (EV) manufacturer. In an announcement on Monday, BYD revealed that it set a new record by selling an impressive 526,000 battery-only vehicles in the final quarter of 2023, supported by a remarkable 70% surge in December sales.
For the entire year, BYD reported sales of over 3 million “new energy vehicles” (NEVs), encompassing battery-only vehicles and hybrids. Nearly 1.6 million were battery-only vehicles, underlining BYD’s commitment to green mobility. The company’s success in the electric vehicle sector is attributed to its origins as a rechargeable battery manufacturer, focusing on cost-effective solutions that competed with pricier imports.
Founded in 1995 in Shenzhen by CEO Wang Chuanfu, BYD initially gained recognition for producing rechargeable batteries for various electronic devices. It later entered the automotive industry by acquiring the struggling state-owned car manufacturer Qinchuan Automobile Company. Since 2008, BYD has had Warren Buffett’s Berkshire Hathaway as a shareholder, contributing to its financial stability.
In contrast to BYD’s integrated approach to manufacturing batteries in-house, many competitors rely on third-party manufacturers for this crucial component. Analysts suggest that BYD’s cost-saving strategy has played a pivotal role in its growth, as batteries constitute a significant portion of an EV’s production cost.
The stellar quarterly and annual performance positions BYD as a formidable contender in the EV market, potentially surpassing Tesla’s figures. Industry analysts estimate that Tesla sold approximately 483,000 electric vehicles in the last quarter of 2023 and 1.82 million units throughout the year. Tesla’s CEO Elon Musk had previously set an ambitious target of 2 million deliveries for 2023 but later acknowledged challenges due to higher borrowing costs impacting demand.
BYD’s achievement underscores the intensifying competition in the global EV landscape and signals its aspirations for global dominance. As both companies vie for market share and innovation, the electric vehicle market is witnessing a transformative period, with BYD emerging as a serious competitor to Tesla’s longstanding dominance.
