In the last quarter of 2023, Chinese company BYD achieved a significant milestone by surpassing Tesla in electric car sales, marking a pivotal moment in the electric vehicle market competition.
BYD reported record-breaking sales of 526,000 battery-only vehicles in the final three months of 2023, outpacing Tesla in this category for the first time. This surge in BYD’s demand coincided with a slowdown in Tesla’s sales due to increased borrowing costs in the US.
However, for the entire year of 2023, Tesla maintained its lead, announcing on Tuesday that it had shipped 1.8 million electric cars, including a record-breaking 484,500 electric vehicles in the last quarter.
Despite Tesla’s overall dominance, BYD’s achievement underscores the challenges faced by the Chinese company, a pioneer in the electric vehicle market. BYD sold nearly 3 million ‘new energy vehicles’ (NEVs) in total for the year, covering both hybrid and battery-only models, with battery-only vehicles contributing over 1.6 million to its total sales.
BYD’s CEO, Wang Chuanfu, co-founded the company in Shenzhen in 1995, initially gaining recognition for producing competitive rechargeable batteries. BYD went public in 2002 and expanded by acquiring Qinchuan Automobile Company in 2003. Berkshire Hathaway, led by Warren Buffett, has been a shareholder in BYD since 2008.
Analysts attribute BYD’s success to its internal production of batteries, which significantly reduces costs. This vertical integration sets BYD apart, as many competitors rely on external battery producers.
In December alone, BYD experienced a remarkable 70% increase in sales, driven partly by substantial price reductions at the end of 2023, highlighting the company’s strategic positioning in the electric vehicle market.
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Image of BYD Atto 3: byd.com
