Chinese Automaker BYD to Outpace Tesla in Global EV Sales Soon

BYD, a leading Chinese automaker, is anticipated to outpace Tesla in global EV sales due to expansion plans and increased production capacity, Nikkei Asia reports,

BYD Chairman Wang Chuanfu recently stated that the company intends to double last year's sales volume to 3.6 million units, including exports.

While BYD has not disclosed a projected breakdown of this year's sales volume, Nikkei tells us that it is expected to sell 1.75 million passenger EVs in 2023, approaching Tesla's target of roughly 1.8 million EVs.

In December 2022, BYD set a new monthly sales record for electric vehicles (EVs), reporting to the Hong Kong stock exchange that sales of its all-electric automobiles increased by 4% from November to 235,197 units. BYD's 2022 sales more than quadrupled to 1.86 million units, with most of those sold in China.

How BYD Plans to Dominate the EV Market

So far, by focusing on EVs and introducing luxury models.

BYD stopped producing conventional gasoline engine vehicles in March 2022 in order to focus on new energy vehicles such as EVs and hybrids.

The carmaker intends to launch the luxury brand Yangwang this year, with the U8 sport utility vehicle serving as the first model.

With prices ranging from $116,000 to $218,000, the U8 features technology that independently controls each of the four wheels to improve safety and stability. BYD will follow up with an electric supercar.

In comparison, the US Tesla Model Y SUV currently starts at $54,990. Bloomberg reports that Tesla recently marked down each version of its higher-volume Model 3 and Y EVs by at least $1,000 and versions of its more expensive Model S and X EVs by $5,000.

The Chinese automaker typically targeted the middle market with vehicles priced between 100,000 and 300,000 yuan. BYD is new to the high-end market, but it needs to be there to compete with Tesla's Model X SUV.

BYD Expansion

In 2019, the company opened a design center at its Shenzhen headquarters and hired top talent, including former Audi designer Wolfgang Egger.

However, Nikkei reports that BYD will likely face some challenges as it expands. The first is the fate of China's new energy vehicle purchase subsidies.

Last year, BYD received 10.4 billion yuan from these subsidies. The automaker's net profit increased 450% last year to 16.6 billion yuan, with subsidies accounting for 60% of that. However, China discontinued the subsidies in December.

BYD Sales Network

Another factor is BYD's sales network. Nikkei reports that a Chinese web portal that collects customer complaints reveals a flood of complaints against automakers across the board, including BYD, regarding how delivery times are communicated and the process for booking test drives.

BYD's forays into European and Asian markets will also be challenging. Last year, overseas operations accounted for less than 3% of total sales volume, highlighting the critical need to expand the company's international footprint.

Tech Times recently covered China's takeover of a Russian wartime auto market. Chinese firms, according to industry experts, must improve their reputation even as their market share grows. Some Russian car buyers still believe that some Chinese vehicles are of lower quality than those of Western competitors.