China’s BYD poised to overtake Tesla as world’s biggest seller of electric vehicles

Hong Kong – BYD is poised to overtake billionaire Elon Musk’s Tesla as the world’s biggest seller of electric vehicles (EVs) as the Chinese automaker’s global sales push gains greater traction.

China’s best-selling car brand came within a whisker of toppling Tesla in the last quarter after factory downtime led to the United States automaker’s first delivery decline in more than a year.

BYD sold 431,603 fully electric vehicles in the three months ended Sept 30, up 23 per cent from the second quarter. Tesla shipped 435,059 cars globally in the quarter – with the 3,456 gap between the two the narrowest yet.

“BYD will sell more fully electric passenger vehicles than Tesla in the fourth quarter,” said Mr Taylor Ogan, chief executive of Shenzhen-based hedge fund Snow Bull Capital, which owns shares in both automakers.

Including hybrids, BYD sold a total of 822,094 vehicles for another record quarter, helping it cement its lead as China’s bestselling car brand.

Known for selling affordable cars to the masses, BYD has made progress in broadening its appeal, aiding its sales surge. The company has added two luxury EV brands, Yangwang and Fang Cheng Bao, to penetrate the 1 million yuan (S$191,000) price category, more than double some of its earlier higher-end vehicles. It also pushed two cheaper models, the Seagull and Dolphin, to undercut its rivals.

Growing exports are also aiding the company, which also makes its own batteries and semiconductor chips, as it eyes a larger chunk of overseas sales to supplement its dominance in China.

Exports accounted for 9 per cent of BYD’s third-quarter sales, up from 5 per cent in the previous quarter, according to Bloomberg Intelligence analyst Joanne Chen.

“This will be a key volume driver (in 2024) as BYD expands its global presence with more new EVs,” she said.

Both BYD and Tesla, however, are

under scrutiny from European officials,

who have launched an investigation into Chinese subsidies for EVs, which they claim put European automakers at a disadvantage.

Tesla’s deliveries missed estimates by around 20,000 units as it prepared its factories to make a refreshed Model 3 sedan and the

yet-to-be-released Cybertruck.

Still, Mr Musk’s company affirmed its annual target of selling 1.8 million vehicles. BYD remains on track to sell around three million vehicles, including hybrids.

The US automaker also reintroduced its base Model Y crossover sport utility vehicle with rear-wheel drive in the American market at a lower price, after it fell short of Wall Street delivery estimates. Tesla also made some tweaks to its Model Y in China, although it left the price unchanged. bloomberg