BYD, China’s largest electric vehicle (EV) manufacturer, achieved record sales of hybrids and EVs worldwide in 2024, bolstered by robust domestic demand and effective government trade-in programs. The company reported total sales of 4.27 million new energy vehicles (NEVs) for the year, a significant 41.26% increase from 2023, surpassing its ambitious target of 3.6 million units.
Passenger NEV sales constituted 4.25 million units, marking a 41.07% year-on-year jump. BYD’s success underscores its resilience amid rising competition from smaller Chinese EV manufacturers, which are rapidly ramping up efforts to capture market share.
Strong Growth Across Key Segments
BYD’s battery electric vehicle (BEV) sales surged 12.08% year-on-year to 1.76 million units in 2024. Meanwhile, its passenger plug-in hybrid electric vehicles (PHEVs) saw a dramatic 72.83% increase, reaching 2.49 million units. This robust performance positions BYD as a formidable contender in the global EV market, narrowing the gap with Tesla, the world’s top BEV seller.
Catching Up with Tesla
While Tesla retained a slight edge in BEV sales, with 1.78 million units sold in 2024, BYD’s rapid growth trajectory suggests it is closing in fast. Tesla faced several setbacks during the year, including declining sales, eroding profit margins, and issues with products like the Cybertruck. These challenges culminated in a global workforce reduction of 10% announced in April 2024, dampening consumer and investor confidence further.
BYD, on the other hand, leveraged year-end discounts and government incentives to attract buyers, consolidating its position as a leader in the hybrid and EV space.
Chinese EV Market Thrives Amid Challenges
China’s electric vehicle market remained robust in 2024, driven by established players like BYD, SAIC, and Geely, as well as newer entrants such as Leapmotor, Li Auto, and Xiaomi. Smaller manufacturers are providing stiff competition, though some, including Nio and Xpeng, struggled to meet their sales goals despite achieving growth.
Government subsidies have played a pivotal role in fostering this market growth. These incentives allow Chinese EV makers to offer competitive pricing both domestically and internationally, particularly in the European Union. Trade-in schemes for older diesel and petrol vehicles have further fueled consumer interest, aligning with the global shift towards greener technologies.
Global Expansion and EU Challenges
While BYD’s domestic dominance continues, its efforts to expand internationally are facing new hurdles. The European Union recently imposed tariffs on key Chinese EV makers, including BYD, Geely, and SAIC, potentially tempering China’s EV export momentum in the short term.
Despite these challenges, BYD remains optimistic about its prospects, buoyed by its innovative product portfolio and strong demand in China. Its adaptability and consistent growth suggest the company is well-prepared to navigate global uncertainties and maintain its upward trajectory.
The Road Ahead
The year 2024 marked a significant milestone for BYD and the Chinese EV market, reflecting both challenges and opportunities. As BYD pushes ahead with its ambitious expansion plans, its record-breaking sales and growing global presence underscore its potential to redefine the EV landscape.
With continued government support and a focus on innovation, BYD is poised to further cement its position as a global leader in the transition to sustainable transportation.
