Chinese electric vehicle (EV) giant BYD has overtaken Tesla as the No. 1 EV maker in sales and No. 1 for revenue in 2024, they have confirmed. Unlike Tesla, Shenzhen-based automaker reported a 29 percent revenue increase to 777 billion yuan ($107 billion), falling below Tesla’s $97.7 billion. It is a historic achievement for the EV industry globally, as BYD has been leading not only in China but also in the global markets. Still, BYD has seized upon Tesla’s market dominance to become the leading player in the EV market.
Surging Sales and Market Dominance
To date, BYD’s sales numbers have been nothing short of remarkable, having sold 4.3 million vehicles worldwide in 2024, including both the pure EV and hybrid versions. For example, Tesla shipped 1.79 million EVs in the same time frame. Even though Tesla continues to top the list in pure electric vehicles, BYD’s commanding performance in the hybrid segment is strong. This has made the company more adept at serving the diversity of consumer needs, as it used to provide fully electric as well as plug-in hybrid options, which are more flexible in places where charging infrastructure is still coming on stream.
Competitive Pricing and Technological Innovation
One of BYD’s major moves out of the dock ahead of Tesla has been its capability to provide cheaper options. Its most recent Qin L model, which launched in November, launched at 119,800 yuan, much cheaper than the price for Tesla’s Model 3 in China at 235,500 yuan. The aggressive pricing strategy to sell BYD cars in emerging markets has successfully helped the company sell to a wider customer base.
This is Super e-Platform, a 1,000 kilowatt capability that is able to charge an EV in five minutes, better than Tesla’s own 500 kilowatt Superchargers. This innovation can further disrupt the industry by addressing one biggest concerns that keeps people from using their EVs daily – charging time.
Global Expansion and Challenges
However, BYD is not just ruling China, it is globalizing untiringly with operations in Europe and other developed countries around the world. The company has also spent heavily on advertising, sponsorship of top European football, such as the European Football Championships. However, BYD is also hampered by geopolitical and trade challenges.
The European Union (EU) has set up an investigation as to whether BYD has benefited from unfair government subsidies to the Hungary factory, which is expected to begin production this year. New tariffs on Chinese EVs by the United States could hamper BYD’s attempts to go into North America. These are examples of the political and economic barriers that Chinese automakers will have to overcome if they want to enter nonlocal markets.
