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Chinese electric vehicle maker BYD is on track to surpass Tesla as the world’s leading producer of battery electric vehicles (BEVs) this year, according to a Counterpoint Research report released Tuesday.
Key figures:
- BYD Q2 2024 BEV Sales: 426,039 units (up nearly 21% year-on-year)
- Tesla Q2 2024 Deliveries: 443,956 vehicles (down 4.8% year-on-year)
Last year, BYD’s total production, including both battery-only and hybrid vehicles, exceeded 3 million units, surpassing Tesla’s production of 1.84 million vehicles for the second consecutive year. However, BYD’s battery-only passenger car production (1.6 million) and hybrid vehicles (1.4 million) still fall short of Tesla’s BEV output.
Despite this, BYD’s significant growth in BEV sales highlights a shifting landscape in the global EV market. The report emphasizes that China continues to dominate the BEV sector, with BYD leading this charge. Counterpoint Research projects that Chinese BEV sales will remain more than 50% of the global market until 2027, and by 2030, they are expected to surpass combined sales from North America and Europe.
The European Union has announced additional tariffs on Chinese EVs, aimed at mitigating competitive pressures on European manufacturers. These provisional tariffs, effective from July 4 if no resolution is reached with Chinese authorities, will impose:
- 17.4% tariff on BYD
- 20% tariff on Geely
- 38.1% tariff on SAIC
These tariffs are on top of the standard 10% duty on imported EVs.
Liz Lee, associate director at Counterpoint Research, notes that these tariffs could redirect Chinese automakers towards emerging markets such as the Middle East, Africa, Latin America, Southeast Asia, Australia, and New Zealand.
Global BEV sales are expected to reach 10 million units in 2024, driven by the decline in internal combustion engine vehicles and ongoing improvements in cost-efficiency and affordability for EVs and their batteries.