Tesla has long ruled global sales of electric cars. But a Chinese newcomer is temporarily winning Elon Musk’s empire.
BYD began promoting gasoline-powered cars in 2003 before expanding into hybrid and all-electric vehicles. This year, it shelved combustion engine cars and expanded its electric vehicle business at an explosive pace. It may soon sell more all-electric cars than more.
In 2021, the Warren Buffett-backed automaker shipped about 320,000 natural electric cars (not counting plug-in hybrids that still account for a giant portion of BYD’s sales). This year, its production has skyrocketed: in the first 11 months of 2022, it more than doubled from last year, shipping around 800,000 electric cars.
It hasn’t stood out yet: Tesla has recorded 908,573 international deliveries through September (it releases figures every quarter) and is on track to achieve its own annual record. In addition, Tesla’s profit margin in line with vehicles dwarfs BYD’s.
BYD’s epic rise comes as Tesla loses ground in China, the world’s largest electric car market. In October, Tesla reduced the size of its cars in China. for your vehicles. (Tesla questions the report. )
Some industry observers like Michael Dunne, founder of electric vehicle consultancy ZoZoGo, BYD is poised to become the leader in EV sales and dethrone Tesla. But comparing them is a bit like comparing apples to oranges, he says.
“It’s like asking, ‘Will Toyota overtake Mercedes in overall sales?’Yes, because Toyota offers a full line of cars ranging from $20,000 to $80,000,” Dunne told Insider. “And the lower the price, the bigger the market, of course. “
BYD has some benefits that will propel it to dominate the market through 2025, according to Dunne: While Tesla is solidly a luxury logo (its cars cost around $50,000 and up), BYD sells cars with logos and value points. The automaker is also one of the world’s leading battery manufacturers.
BYD has been in 1995. Et in addition to automobiles, it manufactures electric buses, trucks and forklifts.
And the Chinese company is reaching into Tesla’s territory in more than one tactic. In November, the company announced plans to launch two new premium logos. It’s part of an effort to shed its identity as an affordable automaker and a more ambitious logo in China, Dunne said.
It also extends its success far beyond its home country. BYD recently promoted cars in Europe and targets Mexico and Japan in 2023.
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