Image: BYD and Autotorino store in Milan, Italy
BYD, a prominent Chinese automaker, saw a notable 21% surge in electric vehicle (EV) sales during the second quarter of this year. This growth is pivotal as it closed the gap with Tesla, its U.S. counterpart, after conceding the top spot earlier in the year.
According to Reuters' calculations based on monthly sales reports, BYD sold approximately 426,039 EVs from April to June. This figure falls short by about 12,000 vehicles compared to Tesla's estimated deliveries for the same period.
In contrast, Tesla is anticipated to announce a 6% decline in vehicle deliveries for the April-June quarter. This would mark Tesla's first back-to-back quarters of decline, a consequence of fierce competition in China and subdued demand due to the absence of affordable new models.
Should actual results fall below estimates, Tesla might relinquish its EV leadership to BYD once again. Barclays forecasts an 11% drop in Tesla's second-quarter deliveries, its most substantial decline to date.
Tesla, which became the world's most valuable automaker on the back of rapid growth, warned earlier this year of markedly slower delivery growth in 2024 as previous price reductions lose their impact.
In response to weakening demand for its older models in China, Tesla has scaled back production of its popular Model Y electric car at its Shanghai facility since March. China, Tesla's second-largest market after the U.S., poses significant challenges amidst shifting consumer preferences.
Meanwhile, BYD has sustained steady growth in EV sales, underscoring its competitive strength against Tesla. Similarly, other emerging EV players like Nio have reported robust performance, with NIO's second-quarter deliveries more than doubling to 57,300 units.
The surge in sales for Chinese EV manufacturers can be attributed to aggressive price cuts and increasing consumer inclination towards electric and hybrid vehicles over conventional gasoline-powered cars. Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), highlighted these factors as driving forces behind the recent strong performance of Chinese EV makers.
In May, new energy vehicles, encompassing EVs and plug-in hybrids, accounted for a record 46.7% of total car sales in China, underscoring a significant shift in consumer preferences towards cleaner automotive technologies.
