It is reported that the Chinese automaker BYD surpassed Tesla and became the world’s largest manufacturer of electric vehicles in terms of sales. Tesla has long been the world’s largest manufacturer of electric vehicles, and recently there has been a significant increase in sales due to rising gasoline prices and increased environmental awareness. According to data published by the Chinese Passenger Car Association (CPCA), in 2021, the company sold more than 900,000 cars, of which about 473,000 were made in China. About 160,000 of these 473,000 vehicles were exported to overseas markets and the rest were sold to customers in the country, making China one of the largest international markets for Tesla.
Despite Tesla’s dominance in the global electric vehicle market, the company’s activities in China have recently been hampered by strict restrictions imposed in the country due to Covid, including frequent blockages, due to which the Shanghai Tesla gigafactory was closed for 22 days earlier this year. In addition, the company’s cars are often banned from entering various parts of the country on suspicion of espionage. Last month, the Chinese coastal region of Beidaihe banned Tesla cars for two months ahead of the upcoming annual meeting of the Communist Party of China in the region. Tesla is also prohibited from being used at Chinese military installations and residential complexes due to security concerns related to cameras mounted on these vehicles.
BYD has become the world’s largest electric vehicle manufacturer, selling 641,000 new vehicles in the first six months of this year. According to the company’s report released this week, this figure represents a significant 315 percent year-on-year jump in sales, making it the world’s largest electric vehicle manufacturer by volume. For comparison, during the same period, Tesla sold 564,000 cars worldwide, which is 46% more than last year, compared with 386,200 cars sold during the same period last year. According to the Financial Times, BYD also overtook South Korea’s LG Energy and became the second largest manufacturer of batteries for electric vehicles in the world after the Chinese company Contemporary Amperex Technology (CATL).
BYD is partially owned by Warren Buffett
Charging an electric vehicle Unsplash.
BYD is a Chinese manufacturer of electric vehicles, which began its activity in 2003 as an ordinary automobile company producing cars with internal combustion engines, and at the beginning of this year completely switched to electric vehicles and hybrids. The company, which received significant investments from Warren Buffett’s Berkshire Hathaway, currently produces exclusively battery electric vehicles (BEV) and plug-in hybrids (PHEV).
As electric vehicle sales have grown exponentially in recent years, China is becoming one of the leading players in this sector both as a consumer and as a global export hub. The country, which is already the world’s largest market for electric vehicles, last year exported more than half a million electric vehicles to various regions of the world, including many European destinations. BYD appears to be reaping the benefits of China’s growing appetite for electric vehicles, and Tesla will have to get its house in order to compete with it both domestically and abroad.