While Tesla has long been synonymous with electric vehicles, there has been a notable shift in the dynamics of global market share, with BYD taking the spotlight.
Data acquired by Finbold indicates that in the first half of 2023, BYD sold 1,191,405 zero-emission vehicles, averaging 198,567 units per month.
BYD’s sales surpassed Tesla’s, which stood at 888,879 (a difference of 302,526 vehicles).
During the first six months of the year, the American manufacturer averaged 148,146 unit sales per month, including both battery electric and plug-in hybrid vehicles.
Other major sellers include BMW with 220,795 units, GAC Aion with 212,090, and Volkswagen with 209,852.
It’s worth noting that among the top eight sellers of electric vehicles, manufacturers from Germany, the United States, and China are the only representatives (comprising 50% of the list).
The Rise of BYD in EV Sales
Several factors have propelled the success of BYD’s electric vehicles (EVs).
One of the most notable factors is that BYD has committed to offering products with a good value proposition.
In fact, the company’s models are priced lower than those of their foreign competitors.
Manufacturing most components in-house helps BYD reduce costs, and any components they don’t produce themselves are readily available through Chinese suppliers.
This profitability has proven particularly advantageous amid supply chain disruptions caused by the pandemic, which affected manufacturers like Tesla.
Furthermore, BYD benefited from its strategic location in Shenzhen during the pandemic.
Shenzhen imposed less stringent lockdown measures than Shanghai, where Tesla operates its largest overseas plant.
This geographical advantage allowed BYD to maintain a smoother production process and potentially gain a competitive edge during challenging times.
It’s worth noting that, like other Chinese EV manufacturers, BYD has thrived thanks to a decade of government subsidies.
These subsidies are part of China’s drive to transition to electromobility and become a global leader in renewable energy.
Tesla Aims to Regain the Top Spot
Tesla, one of the pioneering companies in manufacturing electric vehicles, has been working to ensure the global availability of its cars.
However, the company faced supply chain disruptions due to the pandemic, affecting its production levels.
To address this situation, Tesla aims to catch up with its competitors by initiating production at its facilities in Austin, Texas.
Additionally, the company is tackling the pricing issue by significantly reducing prices, especially on older models.
Elon Musk, Tesla’s CEO, even hinted that the company may continue with such reductions.