BYD Overtakes Tesla to Become Worlds Top Electric Vehicle Battery Manufacturer

Chinese electric vehicle startup BYD’s battery-powered car sales are expected to surpass those of Tesla this year, according to data released by Counterpoint Research on Tuesday. The report also predicts a significant increase in BYD’s market share of pure electric vehicles. In the second quarter, BYD’s battery-powered car sales grew nearly 21% YoY to reach 426,039 units, while Tesla’s deliveries dropped 4.8% to 443,956 units. Last year, BYD produced over 3 million vehicles, including pure electric and hybrid models, surpassing Tesla’s production of 1.84 million vehicles for the second consecutive year. However, Tesla still led in the production of pure electric vehicles, with BYD producing 1.6 million units and 1.4 million hybrid vehicles. Counterpoint states that China remains the dominant force in the pure electric vehicle market and expects China’s pure electric vehicle sales to be four times that of North America by 2024. In addition, Counterpoint predicts that China’s pure electric vehicle sales will surpass the combined sales of North America and Europe by 2030. Last month, the European Union announced additional tariffs on Chinese electric vehicle companies, including BYD, to counter the threat of “foreseeable and imminent damage to EU industry”. BYD will face an additional tariff of 17.4%, while Geely will face 20% and SAIC will face the highest tariff of 38.1%. These tariffs are on top of the existing standard 10% tariff on imported electric vehicles. The committee stated in a statement on June 12 that the tariffs are currently temporary but will be implemented from July 4 if no resolution is reached with ****. Counterpoint Research Vice President Liz Lee stated that the EU’s new tariffs on Chinese electric vehicles aim to create a level playing field for European electric vehicle manufacturers, who are competing with lower-priced Chinese imports. Lee added that these tariffs may push Chinese automakers towards emerging markets such as the Middle East and Africa, Latin America, Southeast Asia, Australia, and New Zealand. The report also predicts that global pure electric vehicle sales will reach 10 million units by 2024, aligning with the continued decline of internal combustion engine vehicles. This growth will be supported by efforts to improve the cost efficiency and affordability of electric vehicles and batteries. CNBC’s Evelyn Cheng contributed to this report.