China’s BYD is set to take Tesla’s crown as the world’s No. 1 producer of battery electric vehicles

03.07.2024

Chinese electric vehicle manufacturer BYD is poised to surpass Tesla in battery electric vehicle (BEV) sales this year, with its market share expected to rise significantly, as reported by Counterpoint Research.

“This shift highlights the evolving landscape of the global EV market,” stated Counterpoint analysts in their report released on Tuesday.

BYD’s BEV sales in the second quarter saw a nearly 21% year-on-year increase, reaching 426,039 units, based on CNBC’s calculations. Meanwhile, Tesla’s second-quarter deliveries decreased by 4.8%, totaling 443,956 vehicles.

Last year, BYD’s total production, which includes both battery-only vehicles and hybrids, exceeded 3 million units, surpassing Tesla’s 1.84 million cars for the second consecutive year.

Specifically, BYD produced 1.6 million battery-only passenger cars and 1.4 million hybrids, positioning Tesla as the leader in BEV production.

BYD also lost its leading EV vendor position to the U.S. EV giant in the first quarter.

Counterpoint highlighted that China remains a dominant player in the BEV market, with BYD at the forefront. China’s BEV sales are projected to be four times higher than those of North America in 2024, according to the research firm.

Warren Buffett’s Berkshire Hathaway has made significant profits from BYD, a company Charlie Munger has praised as a ‘damn miracle’. China is expected to maintain over 50% of the global BEV market share until 2027, and Chinese BEV sales are predicted to surpass the combined sales of North America and Europe by 2030, as per Counterpoint.

In response to the “threat of clearly foreseeable and imminent injury to EU industry,” the European Union announced additional tariffs on Chinese EV firms last month. BYD will face an additional tariff of 17.4%, Geely will be subjected to an extra 20% duty, and SAIC will incur the highest additional duty at 38.1%, all on top of the standard 10% duty on imported EVs.

These tariffs are currently provisional and are set to take effect from July 4, unless discussions with Chinese authorities yield a resolution, the commission stated on June 12.