Chinese electric vehicle (EV) manufacturer BYD is ready to surpass Tesla in battery electric vehicle (BEV) sales this year. According to a recent report from Counterpoint Research, released on Tuesday, highlights a significant shift in the global EV market.
“This shift underscores the dynamic nature of the global EV market,” Counterpoint analysts noted. The second quarter of 2024 saw BYD’s sales increase nearly 21% year-on-year, reaching 426,039 units. In contrast, Tesla experienced a 4.8% drop, totaling 443,956 vehicles, according to CNBC calculations.
In the previous year, BYD’s total production, including battery-only powered cars and hybrid vehicles, exceeded 3 million units, outpacing Tesla’s 1.84 million cars for the second consecutive year. However, BYD produced 1.6 million batteries for only passenger cars and 1.4 million hybrids, positioning Tesla as the leader in BEV production.
Despite losing the top EV vendor spot to Tesla in the first quarter of 2024, BYD continues to lead in China’s BEV market. Counterpoint Research emphasized China’s dominance in the BEV sector, predicting the country’s BEV sales to be four times that of North America’s in 2024. The report forecasts that China will maintain over 50% of the global BEV market share until 2027, with Chinese BEV sales expected to surpass the combined sales of North America and Europe by 2030.
The European Union (EU) recently announced additional tariffs on Chinese EV firms to address the “threat of clearly foreseeable and imminent injury to EU industry.” “The EU’s new tariff rates for Chinese EVs aim to level the playing field for European EV manufacturers, which are struggling to compete with lower-priced Chinese imports,” said Liz Lee, Counterpoint Research’s associate director. She added, “These tariffs might push Chinese automakers towards emerging markets like the Middle East and Africa, Latin America, Southeast Asia, Australia, and New Zealand.”
Starting from July 4, BYD will face an additional 17.4% tariff, Geely will incur an extra 20% duty, and SAIC will be subject to the highest additional duty of 38.1%, atop the standard 10% duty already imposed on imported EVs. These duties are provisional, pending further discussions with Chinese authorities, according to a statement from the European Commission on June 12.