Rahul Somvanshi
Chinese automaker BYD reported record deliveries in 2022, which helped the company quintuple profits. BYD sold a boastful 1.86 million EVs and PHEVs just in 2022, which is more than the previous four years combined.
Tesla and BYD have a positive relationship, and Tesla’s CEO, Elon Musk, acknowledges some of the EV makers in China as Tesla’s only true rivals. In March 2023, BYD’s sales of fully electric vehicles almost doubled the number from March 2022, reaching 102,670.
50% of BYD’s total production is made up of BEVs, and this share is believed to rise as consumers give up on hybrids. BYD’s total deliveries for the first quarter of 2023 rose to 260,000, narrowing the gap with Tesla, which delivered 440,808 vehicles in the same period.
BYD’s net income for 2022 skyrocketed 446% to 16.6 billion yuan ($2.4 billion), slightly surpassing analysts’ expectations. Petrol and diesel car sales have been plummeting in key markets, especially in China, while EV manufacturers BYD and Tesla have experienced huge growth.
Japanese brands, like Toyota, are down 40% year-on-year in China, and German brands, including VW, are down 21%. BYD now has about twice as much market share in China as Tesla for battery-electric vehicles.
Tesla sells luxury EVs, while BYD sells lower-priced models, and the two don’t compete directly in all segments of the car market yet. Even though Tesla’s growth lagged behind BYD in the first quarter, Tesla’s Chinese sales likely grew faster than the overall Chinese market.
