Can BYD Dethrone Tesla as the World's Leading EV Maker by the End of 2024? The Battle Intensifies
As the electric vehicle (EV) market continues its rapid evolution, two giants are now vying for supremacy: Tesla and BYD. The question on everyone's mind is whether BYD can finally seize the crown from Tesla to become the world’s largest EV maker by the end of 2024. A new research report sheds light on this electrifying contest, suggesting that BYD may indeed have the upper hand.
BYD Closing the Gap
In a dramatic race, BYD managed to overtake Tesla in EV production volume for the first time during the fourth quarter of 2023. However, the triumph was short-lived as Tesla regained the title in the first quarter of 2024. With a stellar performance delivering 443,956 vehicles in Q2 2024, Tesla managed to stay atop the EV hierarchy, barely edging out BYD, which sold an impressive 426,039 units during the same period.
Despite this close race, a new report from Counterpoint Research suggests a shift that could redefine the industry landscape by the end of 2024. According to this report, China's growing influence in the global EV market could be the game-changer for BYD. The report also predicts that China will hold a commanding 50% share of the global EV market until at least 2027, potentially surpassing the combined sales of Europe and North America by 2030.
Will BYD Outpace Tesla?
The dynamic growth of China’s EV sector seems robust enough to propel BYD ahead of Tesla. However, it's more than just numbers. New EU tariffs on Chinese EV imports, announced last month, add another layer of complexity to this multi-faceted race. Although impacted, BYD faces a lower tariff rate of 17.4%, compared to other Chinese automakers like SAIC, which have to absorb much higher rates of up to 38.1%.
Undeterred by these challenges, BYD is adapting swiftly. The company is already reaping higher profits from some of its models in Europe compared to its home market in China. While BYD is often associated with affordable models like the Atto 3 and Dolphin, the automaker is branching out into luxury vehicles, pickups, and even supercars.
Earlier this year, BYD launched the Sea Lion 07, a vehicle designed to rival Tesla's Model Y but available at a considerably lower starting price of 189,800 yuan ($26,250). Adding to its portfolio, BYD recently introduced its first electric supercar, the Yangwang U9, showcased racing at the Nürburgring, marking a significant milestone as the brand pushes the boundaries of high-performance EVs.
Strategic Global Expansion
Expanding its footprint globally, BYD is making strategic moves to anchor its presence in key markets. The automaker is opening its first factory in Thailand on July 4, 2024, a pivotal market aiming for 30% EV production by 2030. Additionally, BYD is on the verge of securing a significant deal for establishing a massive production facility in Mexico. This new factory could potentially spark a wave of innovation and output, placing BYD in a formidable position against Tesla.
So, what lies ahead in the electrifying competition between BYD and Tesla? Can BYD clinch the title of the world's largest EV maker by 2024? Share your thoughts in the comments section below.
Source: CNBC
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