China’s BYD is chasing Tesla’s sales volume Tesla sales are expected to surpass last year’s fourth quarter, The main reason is price competitiveness…
Leader in electric vehicles tesla, Competition is fierce between China’s BYD and China’s BYD, which is focused on price competitiveness.
Since beginning full-scale electric vehicle sales in 2018, Tesla has maintained its No. 1 position in the global electric vehicle market, reflecting its leadership in the market based on technological innovation and large-scale production capabilities.
On the other hand, BYD is a Chinese electric vehicle manufacturer, narrowing the gap with Tesla and occupying an important position in the global electric vehicle market.
Last year, Tesla’s electric vehicle sales totaled 1,313,887 units, which was significantly higher than BYD’s sales of 925,782 units.
BYD threatens Tesla sales in China’s domestic market alone
4th quarter 2023 BYD It appears that electric vehicle sales are likely to surpass Tesla. Until now, Tesla was easily ahead of BYD, maintaining an average sales gap of 100,000 units per quarter. However, according to recent trends, BYD’s growth is remarkable.
According to a report by Bloomberg News, BYD sold 335,655 pure electric vehicles worldwide in two months from October to November 2023.
This is an average of about 167,000 units sold per month, which is a very high figure. If the average sales volume of October and November is maintained in December, sales volume of approximately 502,655 units will be recorded in the fourth quarter of 2023 by simple calculation.
On the other hand, Tesla’s sales estimate from July to September was 435,039 units. This comparison raises the possibility that BYD will surpass Tesla’s quarterly sales volume of pure electric vehicles in the fourth quarter. In addition, BYD’s pure electric vehicle sales in the third quarter of 2023 were 431,603 units, which was very close to Tesla’s sales.
One of the main reasons why BYD’s electric vehicle sales are approaching Tesla’s is BYD’s price competitiveness. BYD has succeeded in vertical integration by directly manufacturing core components of electric vehicles, such as lithium iron phosphate (LFP) batteries and vehicle semiconductors.
As a result, BYD was able to adopt a strategy of promoting cost-effectiveness at a price range of 60-80% compared to Tesla electric vehicles, and in China, Tesla Model 3 A lineup of six more affordable electric vehicles has been established.
Additionally, BYD implemented an aggressive price discount policy in December to overtake Tesla’s electric vehicle sales. A marketing strategy was implemented, such as providing 20,000 yuan (about 3.62 million won) worth of support to consumers who switch from internal combustion engine cars to BYD’s electric cars.
What is especially noteworthy is that BYD’s electric car The fact is that less than 10% of sales are exported overseas, which means that the Chinese domestic market alone is threatening Tesla’s sales record.
Meanwhile, BYD is also preparing to enter the European market. With the announcement of the construction of an electric vehicle plant in Hungary, which is scheduled to be completed in 2025, it is expected that the company will enter the European market in earnest.
Additionally, in the North American market, the company is considering entering the US market starting from Mexico. This strategic move increases the possibility that BYD will overtake Tesla next year and foreshadows a change in the competitive landscape in the global electric vehicle market.