BYD Loses its Crown as Top EV Seller to Tesla

In the first quarter of 2024, BYD, China's leading electric vehicle (EV) manufacturer, experienced a significant decline in sales, with a 43 percent drop compared to the previous quarter. This decline led to Tesla reclaiming the title of the world's largest EV seller after BYD briefly held the position last year.

BYD reported selling 300,114 EVs in the first quarter of 2024, down from a record high of 526,409 units sold in the previous quarter. Despite the quarterly decrease, BYD's first-quarter sales were up 13.4 percent compared to the same period last year.

On the other hand, Tesla's first-quarter deliveries amounted to 386,810 vehicles, marking a decline of 20.2 percent from the previous quarter and 8.5 percent from the same period last year. Despite this decline, Tesla's sales were sufficient to regain the title of the world's largest EV seller.

The decrease in sales for both companies can be attributed to softer overall demand and a slowdown in the Chinese EV market, where local competitors, particularly BYD, intensified competition through price cuts. Tesla's China-made vehicle sales in March saw a slight increase compared to the previous year, indicating resilience amidst market challenges.

BYD's overall vehicle sales in the first quarter reached 626,263 units, representing a 13.4 percent increase year-on-year but a 33.7 percent decrease from the record high in the previous quarter. March sales for BYD saw a significant jump, reaching 302,459 vehicles, the second-highest monthly sales tally in the company's history.

Sales of purely electric models by BYD increased by 36.3 percent year-on-year in March, while plug-in hybrid sales rose by 56.4 percent. Responding to Tesla's price competition, BYD implemented price cuts ranging from 5 percent to 20 percent on its latest vehicle models.

Despite the challenges and competition in the Chinese EV market, BYD has set an ambitious sales target of 3.6 million units for 2024, representing a 20 percent increase from the previous year. This goal underscores BYD's determination to maintain its position and expand its market presence amidst evolving market dynamics.