Key Points
- They are coming near Tesla as they post 21% increase in EV sales.
- Just 12,000 units behind Tesla, it sold 426,039 EVs in Q2.
- It’s the second quarterly drop after a 5% decrease in deliveries by Tesla.
- BYD’s global popularity of low-cost models is growing despite its limited presence in America.
China-based electric vehicle (EV) behemoth BYD is closing the gap on market leader Tesla. According to Reuters, which cites recent figures from the company, BYD’s EV sales surged by an impressive 21% during Q2 2024.
This equates to 426,039 units sold and puts the Chinese firm within touching distance of US rival Tesla’s estimated delivery figure of 438,000 cars for the same period. With only 12k vehicles between them, BYD could become the world’s number one seller of electric cars if it surpasses Telsa this year.
Tesla also revealed a decline for two consecutive quarters with a fall of 5% due to overproduction.
In Q2 this year alone it produced about half a million Model Ys but only delivered just over four hundred thousand vehicles which means they have had more than twenty thousand extra units sitting around unsold since April
China’s BYD is catching up with Tesla in sales https://t.co/dXRvUI9HW7
— PoorGamer 🙁 (@PoooorGamer) July 2, 2024
Budget-Friendly Models Give BYD An International Boost
There are many reasons why Tesla may be losing ground against other brands – one being that they have shifted their strategy away from lower-priced offerings towards higher-end products such as Robotaxis and Cybertrucks.
On the other hand though while these cars cost less money upfront buyers still need enough savings or income over time otherwise paying back loans may prove difficult making them not so affordable after all unless you can afford those monthly payments without any issues at all which isn’t realistic for most people out there who are looking for a good deal.
BYD, however, is not well established in America and this may be because of the tariffs on imported Chinese vehicles. The EU has also implemented safeguards to stop cheap Chinese EVs from flooding its market.
BYD’s success aligns with China’s wider industrial plan to outstrip US car manufacturers. Cheap electric cars are what global automakers should focus on producing after seeing this growth from BYD.
Some companies have already reacted by launching affordable EVs like Hyundai Kona or Nissan Leaf that have seen some level of success but it seems like Tesla does not want to re-enter this segment now which could create an opportunity for other players like BYD to gain more ground.
