China EV maker BYD closes in on Tesla as sales jump

Chinese automaker BYD saw sales jump at the end of last year, leaving it close to the title of the world’s best-selling electric vehicle (EV) maker in 2024.

The company said it sold 207,734 EVs in December, taking its annual volume to 1.76 million, as subsidies and discounts helped attract customers.

It comes as Tesla prepares to announce its quarterly sales figures on Thursday.

The US electric car maker maintained a slight lead in EV sales over BYD in the previous quarter but the Shenzhen-based company has been closing the gap.

All BYD vehicles jumped more than 41% in 2024, year-on-year. The operation was mainly driven by sales of its hybrid vehicles.

The company has benefited from rising car sales in its home market, as intense competition has kept prices low and government subsidies have encouraged buyers to replace their old cars with EVs or other fuel-efficient alternatives.

BYD sells 90% of its cars in China, where it is ahead of foreign brands such as Volkswagen and Toyota.

The rise of BYD and other Chinese EV makers contrasts with the struggles of legacy automakers, which have struggled in major Western markets.

last month, Honda and Nissan confirmed that they will hold talkswhile the two Japanese companies want to fight the competition of the Chinese car industry.

Also in December, Volkswagen has announced that it has entered into an agreement with the IG Metall trade union which would prevent plant closures in Germany and prevent forced layoffs.

Germany’s auto giant has previously warned it could close plants in the country for the first time in a bid to cut costs.

At the beginning of the month, Stellantis’ boss at the carmaker, Carlos Tavares, resigned immediately following the boardroom debate.

His sudden exit from the company – which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler – came two months after Stellantis issued a profit warning.

In the third quarter of 2024, BYD saw its revenue rise, beating Tesla for the first time.

It posted more than 200bn yuan ($28.2bn, £21.8bn) in revenue between July and September – a 24% jump from the same period last year, and more than Elon Musk’s company whose revenue averaged 25.2 billion.

However, Tesla still sold more electric vehicles (EVs) than BYD.

Chinese automakers have been trying to boost sales of their EVs abroad but have faced challenges in some key markets.

In October, European Union tariffs Up to 45.3% of China-made EV exports went into effect across the region.

The US has also imposed 100% duties on EVs from China and President-elect Donald Trump is expected to enforce them. Other tariffs.

Meanwhile, BYD has been increasing growth in the coming financial year.

Last month, it faced difficulties in Brazil – its biggest foreign market – and authorities have stopped the construction of the BYD factoryto say that workers live in conditions akin to “slavery”.

BYD said it had severed ties with the construction company involved and remained committed to “compliance with Brazilian law”.