BYD Set To Overtake Tesla as Leading EV Manufacturer

According to a recent report by Counterpoint Research, Chinese electric vehicle maker BYD is en route to surpass Tesla in battery electric vehicle (BEV) sales this year. With its market share set to grow substantially, BYD is expected to become a dominant player in the EV industry.

In the report, which was released on Tuesday, Counterpoint analysts said, “This shift underscores the dynamic nature of the global EV market.”

BYD experienced a significant boost in battery EV sales in the second quarter, increasing by nearly 21% from the previous year to 426,039 units, as reported by CNBC. Meanwhile, Tesla saw a 4.8% drop in deliveries, with a total of 443,956 vehicles for the same period. This movement emphasizes BYD’s rapid expansion in the EV market and its emerging threat to Tesla’s dominance.

In the previous year, BYD surpassed Tesla in overall production of more than 3 million units, which includes both battery-only and hybrid vehicles. BYD’s output included 1.6 million battery-only passenger cars and 1.4 million hybrids, while Tesla maintained leadership solely in battery electric vehicle manufacturing.

BYD slipped behind Tesla as the top EV seller in the first quarter. Despite this shift, Counterpoint Research underscored China’s dominant position in the BEV market, with BYD playing a pivotal role. Projections indicate that Chinese BEV sales will quadruple those in North America by 2024, and China is expected to hold more than 50% of the global BEV market share until 2027. By 2030, Chinese BEV sales are anticipated to surpass sales from both North America and Europe.

To deal with the growing number of Chinese EVs, the European Union decided recently to increase taxes on Chinese EV makers. BYD could face a 17.4% tax, SAIC a 38.1% charge, and Geely a 20% charge, as well as the existing 10% tax on EVs that are imported. These new taxes will start on July 4, unless ongoing discussions with Chinese authorities lead to a solution.