China’s BYD Regains Top EV Spot Amidst Tesla Decline

Matthew Broersma,
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A BYD Han electric vehicle. Image credit: BYD

China EV giant BYD surpasses Tesla on worldwide EV deliveries in fourth quarter of 2024 as Tesla shows first full-year decline

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China’s BYD Auto surpassed Austin, Texas-based Tesla on pure electric vehicle deliveries during the fourth quarter of 2024, as Tesla experienced its first-ever annual decline.

BYD, based in Shenzhen, an important industrial, commercial and technology area, outpaced Tesla by more than 20 percent for the quarter, according to figures from both companies.

The Chinese firm delivered 595,412 battery electric vehicles (BEVs) to customers, up 13.1 percent year-on-year, compared to Tesla’s 495,570 during the same period.

The Tesla figures fell short of analysts’ expected 512,277 vehicles, according to Bloomberg data.

A Tesla electric vehicle. Image credit: Tesla
Image credit: Tesla

EV growth

Tesla’s deliveries were up 2.3 percent from the same period a year earlier and 7.1 percent from the previous quarter.

BYD also delivered some 918,556 plug-in hybrid cars (PHEVs) during the period. Tesla’s vehicles are all BEVs.

Phate Zhang, founder of Shanghai-based EV data provider CnEVPost, commented that BYD’s popularity is based on its lower-priced vehicles aimed at middle- and lower-income consumers, while Tesla has to date focused on the premium market.

He said in a note that BYD is “set to retain the title as the world’s largest BEV maker this year”.

BYD is China’s largest EV maker, delivering 4.27 million pure electric and plug-in hybrid vehicles in 2024, up 41.3 percent year-on-year.

It is expected to surpass Volkswagen to become the biggest carmaker in China in 2024, including both electric and petrol-powered vehicles, once VW releases its full-year sales figures.

Meanwhile Tesla’s annual sales figures for 2024 fell by 1.1 percent year-on-year to 1.79 million units.

Tesla sales slump

The company’s shares dropped 6 percent last week after it released the figures, but have retained a gain of about 72 percent over the past 12 months.

BYD also overtook Tesla on BEV deliveries for the fourth quarter of 2023, but Tesla regained its lead for the first three quarters of 2024.

Tesla is significantly more geographically diversified than BYD, with China sales making up some 37 percent of its global total.

Meanwhile BYD is almost entirely focused on sales in China, with sales outside the mainland making up only 7.8 percent of the total.

Markets in North America and Europe have begun imposing steep tariffs on imported Chinese EVs as companies seek to expand to other geographies, amidst claims that China’s state backing for the EV industry constitute unfair competition.