Chinese car maker BYD has reported a significant surge in electric vehicle (EV) sales, narrowing the gap with Tesla, the current market leader. In December, BYD sold 207,734 EVs, taking its annual total to 1.76 million. This represents a substantial increase, driven by subsidies, discounts, and a rise in car sales in BYD’s home market of China.
BYD’s total vehicle sales jumped 41% in 2024, year-on-year, with hybrid cars being the main driver of growth. The company has benefited from intense competition in the Chinese market, which has driven down prices, and government subsidies that have encouraged consumers to replace their old cars with EVs or more fuel-efficient options.
As BYD gains ground, Tesla is due to announce its quarterly sales figures later today. The US electric car maker maintained a slim lead in EV sales over BYD in the previous quarter, but the Chinese firm has been rapidly closing the gap.
The rise of BYD and other Chinese EV makers contrasts with the challenges faced by some legacy car makers, which have been struggling in major Western markets. The increasing competition from Chinese firms has led to significant changes in the global automotive industry, with some companies seeking mergers and others announcing cost-cutting measures.
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