China's BYD closes in on Tesla as sales jump

In December, BYD, a well-known electric vehicle manufacturer from China, experienced a significant increase in sales. The company reported that it sold 207,734 electric vehicles in December alone, bringing its total sales for the year to an impressive 1. 76 million units. This surge in sales is part of BYD's strategy to compete with Tesla, aiming to become the leading electric vehicle maker in the world by 2024. The company has been able to attract more customers through various incentives, including subsidies and discounts, which have made their vehicles more affordable. Tesla is also expected to release its quarterly sales figures soon, and while it has maintained a slight edge over BYD in the previous quarter, the gap is closing. BYD's overall vehicle sales increased by more than 41% compared to the previous year, with a significant portion of this growth attributed to the popularity of its hybrid vehicles. The rise in sales can be linked to a broader increase in car purchases within China, where fierce competition has led to lower prices and government incentives encouraging consumers to upgrade to electric or more fuel-efficient vehicles. Notably, BYD sells around 90% of its cars in China, where it has been steadily gaining market share against established foreign brands like Volkswagen and Toyota. This growth of BYD and other Chinese electric vehicle manufacturers stands in stark contrast to the challenges faced by traditional car makers, particularly in major Western markets. In December, two Japanese automotive companies were also working to regain their competitive edge against the rising Chinese car industry. Additionally, a major German automotive manufacturer was attempting to avoid plant closures in Germany, having previously warned that it might need to shut down operations to cut costs. Earlier in the month, a high-ranking executive from another automotive company left unexpectedly after a boardroom dispute, which came just two months after the company issued a profit warning. In the third quarter of 2024, BYD reported a remarkable revenue increase, generating over 200 billion yuan, equivalent to approximately 28. 2 billion dollars. This represented a 24% increase from the same period last year, surpassing Tesla's quarterly revenue of 25. 2 billion dollars. However, despite BYD's impressive revenue growth, Tesla still managed to sell more electric vehicles than BYD. Chinese car manufacturers have been actively seeking to expand their sales in international markets, but they have encountered resistance in some key regions. In October, a new import tax of up to 45. 3% on Chinese-made electric vehicles was implemented across the European Union, making it more challenging for these companies to compete. The United States has also imposed a 100% duty on electric vehicles imported from China, and there are expectations that the incoming administration may introduce further restrictions on imports. Meanwhile, BYD has been working to strengthen its presence in emerging markets. However, the company faced a setback in Brazil, its largest overseas market, when it was accused of allowing workers to live in conditions likened to 'slavery. ' In response, BYD stated that it had severed ties with the construction firm involved and reaffirmed its commitment to fully comply with Brazilian laws and regulations.