BYD Surpasses Tesla as Leading EV Maker in 2023

The Chinese automaker BYD has surpassed Tesla as the world's largest electric car manufacturer by sales. In the final quarter of 2023, BYD delivered a record 525,409 battery electric vehicles (BEVs), while Tesla delivered 484,507. 

Despite Tesla still leading in overall sales for the year, BYD's 73% growth in electric vehicle sales and expansion into Europe are signs of China's rapidly expanding electric car market.

China's EV industry has been accelerating its transition, supported by strong government support and policies, aiming to have new energy vehicles (NEVs) account for 20% of new car sales by 2025 and a majority of sales by 2035. 

In the first 11 months of 2023, NEVs accounted for over 30% of total car sales in China, ahead of schedule.

BYD's rise to the top underscores China's dominance in the global electric car industry, propelled by its vast domestic market, low labor costs, and dominance in the EV supply chain. Chinese automakers are expanding globally, with BYD aiming to double its dealer partnerships in Europe and target overseas sales of 250,000.

Intensifying competition and price wars have pressured profit margins for many automakers. China's car industry profit margin is down to 5% for the first 11 months of 2023, compared to 5.7% in 2022 and 6.1% in 2021. To combat slowing domestic demand, Chinese automakers are exploring international markets to sustain growth.