Shanghai, China – BYD, a leading Chinese electric car company, has made headlines by surpassing Tesla as the world’s largest electric vehicle manufacturer in the final quarter of 2023. According to a stock exchange filing, BYD sold a record number of cars, including 525,409 battery electric vehicles in the three-month period ending December 31, outpacing Tesla’s delivery of 484,507 vehicles during the same quarter. Although Tesla still maintained an overall lead in 2023, BYD’s rapid growth, backed by Warren Buffett, reflects China’s rising prominence in the electric vehicle industry.
China’s commitment to electric vehicles is evident in its push for at least 20% of new cars sold annually by 2025 to be new energy vehicles (NEVs), including battery electric vehicles, plug-in hybrids, and hydrogen fuel cell vehicles. Furthermore, China aims for NEVs to become the “mainstream” of new car sales by 2035, leading the global industry due to its market scale, cheap labor, and supply chain dominance, analysts say. As a result, Chinese EV makers, including BYD, have been able to expand domestically and internationally, aided by government support and infrastructure investments.
The surge in Chinese electric car production has also sparked concerns about intensifying competition and a brutal price war, impacting the profit margins of car makers. This has led Chinese car makers to seek growth outside the mainland, with a focus on expansion in Europe, Australia, and Southeast Asia. Interestingly, BYD has announced plans to build its first passenger car plant in Europe – an EV factory in Hungary – reflecting the company’s ambitious targets for overseas sales.
In conclusion, China’s electric vehicle industry, led by companies like BYD, continues to make significant strides on the global stage, driven by government support and a strong domestic market. As the competition intensifies, the future of electric vehicles will be shaped by China’s innovative advancements and its expansion into international markets. With China’s ambitious targets for NEVs and its growing role in the global electric vehicle industry, the trajectory of the automotive industry is poised for transformation.
