Chinese electric vehicle manufacturer BYD has overtaken Tesla as the top-selling EV maker in the world in the fourth quarter of 2023.
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BYD reported selling 3.02 million new energy vehicles globally last year. Tesla announced sales of 1.84 million electric cars in the same period. In terms of only battery-powered models, Tesla still holds the lead in terms of total battery-only sales for 2023 as BYD's battery-only sales in the year amounted to 1.6 million units.
Most BYD vehicles are more affordable than Tesla's offerings. The company gets about 20% of sales from China. The company currently aims to boost its international sales numbers, and targets 800,000 EV sales in Europe by 2030. But the expansion plans face uncertainty as the EU investigates alleged Chinese subsidies and may impose tariffs.
A key advantage for BYD is its in-house battery production, contrasting Tesla's reliance on external suppliers. BYD also manufactures components like semiconductors. This vertical integration allows tighter control of the supply chain.
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The rise of homegrown companies like BYD highlights China's emergence as the dominant global production center for EVs. It comes as the US looks to counter this through policies boosting its domestic EV industry, including subsidies favoring American-made vehicles.
With China-US trade and technology tensions simmering, the success of BYD versus Tesla will likely play into election year political debates. It underscores concerns that the US is lagging behind in some advanced manufacturing capabilities. But BYD also faces an uphill battle breaking into Western markets like the US. The dueling trajectories of these EV giants will have geopolitical and economic implications.
