China’s BYD Co. enjoyed a year-end surge to push total sales to 4.25 million passenger cars last year, narrowing its gap with Tesla Inc. as the two compete for the crown of best-selling electric vehicle manufacturer of 2024.
The Shenzhen-based automaker,which stopped manufacturing vehicles powered entirely by fossil fuels in 2022reached a new monthly sales record in December, boosted by subsidies and offering additional incentives to buyers.
BYD sold 509,440 plug-in hybrid and all-electric passenger vehicles in December, the company reported Wednesday. The figure includes 207,734 electric vehicles, bringing total annual battery car sales to 1.76 million. Total annual sales increased 41% year-on-year.
BYD’s rise as a best-selling auto brand contrasts with the crisis faced by a growing number of traditional auto giants such as Nissan Motor Co. Volkswagen AG and Stellantis NV. Western car brands have faced falling sales in China, while lagging behind in the transition to electric vehicles.
BYD sales reach new highs in 2024 | Purchases of electric and plug-in hybrid vehicles increase more than 40% year-on-year
Tesla goal
Tesla will release its fourth-quarter sales figures later this week. The company led by Elon Musk needs to deliver at least 515,000 electric vehicles in the last three months of 2024 to meet its forecast of “slight growth” in annual sales, or 1.81 million deliveries, which would be a quarterly record for the company. Analyst estimates point to 510,400 deliveries, just below Tesla’s expectations.
BYD has followed Tesla in quarterly sales this year. In the third quarter, BYD had sold 1.16 million electric vehicles, 124,100 fewer than Tesla. However, the Chinese best-seller has experienced a rebound in the last quarter that has allowed it to reduce the gap with its American rival.
According to BYD’s December data, it will fall just short of surpassing Tesla in annual sales. It has only surpassed Tesla once: on a quarterly basis, in the last three months of 2023.
New milestones
BYD’s rise will help cement its place among the world’s best-selling automakers. Its increase in total sales puts it close to surpassing Ford Motor Co. and Honda Motor Co. on an annualized basis as well. The sales increase will push the company’s annual revenue past $100 billion for the first time.BYD’s profits have been boosted by domestic sales in China and helped in the second half of the year by increased subsidies to convince drivers to abandon gasoline cars.
Its goal of selling approximately half a million vehicles outside China has not met expectations in the face of resistance from the European Union, which has imposed additional tariffs on Chinese electric vehicles.
In Brazil, one of its largest foreign marketsBYD is under scrutiny over allegations of near-slavery conditions for some construction workers building a new electric vehicle factory.
