Tesla Loses the Middle East Battle to BYD
This page is translated from the original post "Tesla perd la bataille du Moyen-Orient face à BYD" in French.
- 22/04/2025 10:47
BYD and Aramco sign a strategic alliance to dominate the electric market in the Middle East at the expense of Tesla.
The global rivalry between Tesla and BYD is intensifying, and it is now in Saudi Arabia that the Chinese manufacturer gains the upper hand. BYD, already a global leader in the new energy vehicle (NEV) market, has just formed a strategic partnership with the Saudi oil giant Aramco. This agreement marks a decisive step forward in developing innovative technologies in the field of electric and hybrid vehicles in a still emerging but promising market.
Saudi Arabia, with its ambition to increase the share of electric vehicles from 1% to 30% by 2030, represents a unique opportunity for manufacturers. This market, largely under-equipped with charging infrastructure, with only 101 stations recorded in 2024, requires enormous investments to meet future demand. BYD has anticipated this dynamic by strengthening its local presence, notably by opening a showroom in Riyadh a year ago. The alliance with Aramco consolidates this strategy. Ali A. Al-Meshari, vice president of Aramco, stated that this partnership will explore advanced propulsion solutions and low-emission fuels, combining innovation and sustainability.
BYD keeps pushing forward
Tesla, on its side, is trying to catch up by investing in Superchargers and pop-up stores in Riyadh, while focusing on its online sales. However, the Californian brand, weakened by a 13% decrease in its global sales in the first quarter of 2025, suffers from a delayed refresh of its lineup, despite the recent revamped Model Y. In comparison, BYD shows impressive figures with nearly one million hybrid and electric vehicles sold during the same period.
BYD’s advantage also lies in its ability to meet the diverse needs of the market. With a range nearly ten times broader than that of the American manufacturer and a hybrid/electric mix, BYD continues to attract with a diversified and accessible offer. From cars costing less than 10,000 euros to the Yangwang U9 Hypercar, to the Denza Premium range, BYD is everywhere! The alliance with Aramco could propel the Chinese brand to a dominant position, not only in Saudi Arabia but across the entire Middle East. This strategic partnership, combining oil expertise and electric innovation, could very well turn BYD into the key player in the region’s energy transition.
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