BYD Runs at Full Speed to Overtake Tesla

BYD’s production pace follows an exponential curve allowing the Chinese manufacturer to aim high… very high!

BYD, the Chinese electric vehicle manufacturer, announced record sales in 2024, reaching 4.25 million electrified vehicles, according to data published on Wednesday. This category includes fully electric vehicles (BEV) and plug-in hybrids (PHEV), with overall growth of 41% compared to 2023.

Among these sales, approximately 1.7 million cars were BEVs, constituting 40% of the total. In comparison, Tesla, the American leader, delivered 1,789,226 battery vehicles in 2024, maintaining its lead over BYD with a narrow gap of 24,234 units.

For Tesla, the stakes are high. After selling 495,570 cars in the fourth quarter of 2024, the brand reaches a total of 1.81 million deliveries for the year, a personal record. However, BYD is closing the gap thanks to an exceptional December, marked by the sale of 509,440 vehicles – an increase of nearly 50% year-on-year.

BYD’s growth largely relies on its domestic market. In 2024, the brand sold just over 417,000 vehicles abroad, representing only 10.8% of its total deliveries and falling short of its 500,000 units target. Europe has imposed new tariffs on Chinese EVs, while Brazil reintroduced import taxes, complicating international expansion.

On the other hand, in China, purchase subsidies boosted sales, notably through the “cash for clunkers” program, encouraging consumers to exchange their old vehicles for electric or hybrid models. Although these aids ended on December 31, experts forecast that Beijing will maintain incentives into 2025. The exact opposite of France, unfortunately…

Despite BYD’s rise, Tesla remains the global leader in BEVs. In 2024, the brand was only surpassed once by BYD, during the fourth quarter of 2023. With quarterly deliveries expected to be around 500,000 units to close the year, Tesla aims for steady but modest growth.

The immediate future, however, remains uncertain. The results of these two electric giants depend both on their ability to innovate and to overcome regulatory and economic obstacles in their respective markets.

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