BYD On the Verge of Overtaking Tesla in BEV Sales
As the global electric vehicle industry continues to grow, Chinese automaker BYD is on track to surpass Tesla in full electric vehicle (BEV) sales. The two companies started out with different strategies but are now converging. The latest data shows that BYD is close to matching Tesla's quarterly BEV sales and could potentially overtake Tesla in the near future.
BYD's Rise in BEV Sales
BYD started out with cheaper, low-performance electric cars targeted at taxi drivers. In contrast, Tesla began with high-end, super-fast electric vehicles. However, the companies now have significant overlap in their offerings. The interesting development is that BYD is catching up to Tesla and may even surpass it in quarterly BEV sales.
In the third quarter of 2023, Tesla delivered 435,059 fully electric vehicles, while BYD sold 431,603 BEVs. Both companies held a 17% share of the global BEV market. If we add in plugin hybrids, BYD's total sales would be 822,094 vehicles.
The graphs depicting global BEV sales by brand clearly show the convergence between BYD and Tesla. BYD's market share increased from 13% to 17% in the past year, while Tesla remained steady at 17%.
BYD's Growing Dominance
While Tesla has historically been dominant in China and the US, BYD has overtaken Tesla in its home market and is rapidly expanding in other countries. By expanding its sales in Asia, South America, Oceania, and Africa, BYD is gradually narrowing the gap between itself and Tesla. Furthermore, considering Tesla's reliance on new model releases to maintain its competitive edge, BYD is expected to expand faster and hold onto the number one spot for a while.
Some people underestimate BYD's position in the market, highlighting that the company sells cheaper cars and even referring to its vehicles as 'clown cars'. However, BYD offers a range of competitive electric vehicle models and has made significant progress in terms of vehicle quality and sales growth. Tesla fans may be biased due to their investment in the company, causing them to overlook BYD's achievements.
The Future of BEV Sales
Looking ahead, BYD's progress is set to continue. As Tesla prepares to release its cheaper 'Model C', it will face tough competition from BYD, which is already ahead in terms of affordable electric vehicles. BYD's strong performance suggests that it will maintain its lead in BEV sales and potentially widen the gap between itself and Tesla. By the end of 2024, BYD is expected to establish itself as the leader in full battery-electric (BEV) sales.
To keep track of the evolving market dynamics and the race between BYD and Tesla, it is worth following the World EV Sales reports.
