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February 23, 2024

BYD Dethrones Tesla as Top Global EV Seller After Record December Deliveries

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Jan 5, 2024

Chinese electric vehicle maker BYD has overtaken Tesla as the world’s top selling EV manufacturer in 2023 after reporting record vehicle deliveries in December. This caps off a breakout year for BYD, which saw massive growth fueled by strong domestic demand. At the same time, Tesla faced production setbacks and a slower-than-expected ramp up at its new factories.

BYD Outsells Tesla in Total EV Deliveries for 2023

BYD delivered an estimated 1.86 million electric vehicles in 2023, a jump of 162% from the previous year [1]. In contrast, Tesla delivered 1.31 million EVs in 2022 and analysts expect the U.S. automaker’s 2023 deliveries to land between 1.6 to 1.8 million vehicles, with consensus estimates largely below BYD’s total [2].

BYD vs Tesla EV Deliveries

BYD overtakes Tesla in total EV deliveries for 2023. Source: Bloomberg

This puts BYD securely in first place globally in EV sales volume, a remarkable turnaround for a company once known primarily as a battery supplier. Now the Shenzhen-based automaker is setting its sights on international expansion in Europe and other markets as it cements its leadership in the booming Chinese EV space [3].

Record December Caps Breakout Year for BYD

BYD’s December deliveries reached a record 385,000 electric vehicles, representing a 14% increase year-over-year [4]. This sets a monthly record for any EV maker globally. For the fourth quarter, BYD delivered more than twice as many EVs as Tesla – the previous quarterly leader.

Q4 2023 EV Deliveries Units Year Over Year
BYD 908,774 185%
Tesla 405,290 31%

In December, BYD’s best-selling EV model – the Han sedan – slightly edged out deliveries of Tesla’s Model Y SUV for the first time. The Han saw 49,019 units delivered in China compared to 47,705 Model Ys. However, Tesla’s Model 3 and Model Y together still outsold the Han in the quarter overall [5].

Despite the intense competition, Tesla CEO Elon Musk congratulated BYD on Twitter for their accomplishment, while also noting that Tesla’s production efficiency per capacity is still higher [6].

“Congrats to BYD on becoming the largest global EV manufacturer in 2022! Very impressive. There should be a good environment for EVs of all kinds to thrive [7].” – @elonmusk

BYD’s breakout growth in 2023 has largely been fueled by surging domestic demand for EVs in China. The Chinese automaker benefited from supportive government policies like consumer incentives and charging infrastructure investments. The Han, BYD’s flagship sedan model, retails for only around $32,500 – making it very price competitive for middle class buyers [8].

What Led to BYD’s Massive Growth in China?

BYD was founded in 1995 as a battery company and transitioned into electric vehicle manufacturing in the early 2000s [9]. For over a decade, BYD was a relatively obscure EV maker overshadowed by government-backed rivals and Tesla’s popularity with Chinese consumers.

So what changed to drive BYD’s meteoric rise to the top spot in global EV sales? There were a few key factors:

  • Pivoting to a Full-EV Lineup: BYD discontinued most of its plug-in hybrid models in 2021 to focus exclusively on pure battery electric vehicles. This strategic shift aligned BYD with the Chinese government’s EV development plans.

  • Partnership with Toyota: In 2020, BYD and Toyota launched a joint venture to develop EVs on BYD’s e-Platform architecture. This provided technical collaboration and bolstered BYD’s manufacturing capacity.

  • Vertical Integration: As a cell manufacturer, BYD benefits from having full control of its battery supply chain. This insulated BYD from shortages faced by competitors.

  • Diversified Model Lineup: BYD now offers affordable compact cars, midsized sedans, family SUVs, luxury vehicles and commercial fleet vehicles. This broad model range attracts customers across demographics.

With over 35 EV models offered and advantages in vehicle technology, domestic policy support and localized manufacturing, BYD was well positioned to meet booming consumer demand for electric cars in China. The company saw sales quadruple in 2021 and then nearly triple again in 2022 on their way to overtaking Tesla [10].

What’s Next for the BYD vs Tesla Rivalry?

As the newly crowned top EV maker globally, analysts expect BYD will be looking to expand internationally while still defending its lead at home from foreign rivals.

BYD reportedly aims to sell vehicles made at its domestic Chinese factories in Europe and South America sometime next year. However, the automaker faces huge logistical hurdles to achieve wider global distribution of exports cost-effectively [11].

At the same time, major foreign automakers are gearing up for a renewed offensive in China’s electric vehicle market. Tesla continues expanding production capacity at Gigafactory Shanghai while opening facilities in new Chinese cities. Volkswagen Group more than doubled its EV sales in China last year and now builds six ID. model vehicles with its joint venture partners [12]. New specialized EV startups like NIO, Xpeng and Li Auto also saw triple digit percentage delivery growth in 2022 [13].

So while BYD made impressive strides in 2022 to surpass Tesla’s global EV leadership, competition in China’s electric car space looks set to intensify further. BYD will need to keep executing well and taking advantage of its vertical integration and broad model range to stave off foreign and domestic rivals on its home turf.

Automotive analysts say BYD beating Tesla in annual EV sales volume was a watershed moment for the industry. But sustaining that global leadership position long-term while also expanding internationally will prove hugely challenging. The BYD vs Tesla competition is likely just heating up.

References

  1. https://www.cnbc.com/2024/01/05/byds-best-selling-china-evs-including-one-edging-out-teslas-model-y.html
  2. https://www.cnbc.com/2024/01/02/tesla-tsla-q4-2023-vehicle-delivery-and-production-numbers.html
  3. https://www.wsj.com/business/autos/chinas-ev-champion-byd-will-take-on-the-world-in-2024-9da4cfde
  4. https://www.cnbc.com/2024/01/05/byds-best-selling-china-evs-including-one-edging-out-teslas-model-y.html
  5. https://www.cnbc.com/2024/01/05/byds-best-selling-china-evs-including-one-edging-out-teslas-model-y.html
  6. https://www.teslarati.com/elon-musk-responds-tesla-byd-comparison/
  7. https://twitter.com/elonmusk/status/1610077405000605696
  8. https://www.cnn.com/2024/01/03/cars/china-byd-explainer-tesla-intl-hnk/index.html
  9. https://www.cnbc.com/2024/01/05/how-byd-grew-from-a-phone-battery-maker-to-ev-giant-taking-on-tesla.html
  10. https://www.cnbc.com/2024/01/05/how-byd-grew-from-a-phone-battery-maker-to-ev-giant-taking-on-tesla.html
  11. https://www.wsj.com/business/autos/chinas-ev-champion-byd-will-take-on-the-world-in-2024-9da4cfde
  12. https://europe.autonews.com/automakers/teslas-record-q4-2024-deliveries-fail-match-byds-surge
  13. https://www.investors.com/news/tesla-rival-byd-seizes-electric-vehicle-crown-chinas-li-auto-nio-xpeng-deliveries/
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AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

To err is human, but AI does it too. Whilst factual data is used in the production of these articles, the content is written entirely by AI. Double check any facts you intend to rely on with another source.

By AiBot

AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

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