China EV maker BYD closes in on Tesla as sales jump

Chinese automaker BYD saw a jump in sales at the end of last year, bringing it closer to claiming the title of the world’s best-selling electric car maker for 2024.

The company says it sold 207,734 electric vehicles in December, bringing its total annual sales to 1.76 million, as subsidies and discounts helped attract customers.

This comes as Tesla is scheduled to announce its quarterly sales numbers later on Thursday.

The US electric car maker maintained a slight lead in EV sales over BYD in the previous quarter, but the Shenzhen-based company is working to narrow the gap.

BYD’s total vehicle sales jumped more than 41% in 2024, year-on-year. This rise was mainly supported by sales of its hybrid cars.

The company has benefited from rising car sales in its home market, where intense competition has driven down prices and government support has encouraged consumers to replace their old cars with electric vehicles or other more fuel-efficient options.

BYD sells 90% of its cars in China, where it expands its lead over foreign brands such as Volkswagen and Toyota.

The rise of BYD and other Chinese electric car makers contrasts with the challenges faced by some legacy automakers, which have been struggling in major Western markets.

last month, Honda and Nissan have confirmed that they are in merger talksas the two Japanese companies seek to fight competition from the Chinese auto industry.

Also in December, Volkswagen announced that it has reached an agreement with the IG Metall workers’ union This will avoid the closure of factories in Germany and avoid immediate compulsory layoffs.

The German car giant previously warned that it may have to close its factories in the country for the first time in an attempt to cut costs.

Earlier in the month, Carlos Tavares, president of car giant Stellantis, has resigned with immediate effect After a clash in the board of directors.

His surprise exit from the company – which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler – came two months after Stellantis issued a profit warning.

In the third quarter of 2024, BYD saw a significant increase in its revenues, Beating Tesla for the first time.

It generated revenues of more than 200 billion yuan ($28.2 billion, £21.8 billion) between July and September, a 24% increase on the same period last year, and more than Elon Musk’s company, which had quarterly revenues of $25.2 billion.

However, Tesla still sells more electric vehicles (EVs) than BYD.