BYD’s Seal U electric vehicle made its debut at the IAA Mobility 2023 International Motor Show in Munich, Germany on September 6, 2023. According to data released by Counterpoint Research on Tuesday, the Chinese electric vehicle startup BYD is expected to surpass Tesla in battery electric vehicle sales this year, with a significant increase in market share. Analysts from Counterpoint noted in their report that “this shift underscores the dynamics of the global electric vehicle market.” CNBC’s calculations indicate BYD achieved a nearly 21% year-on-year increase in battery electric vehicle sales in the second quarter, totaling 426,039 units. In contrast, Tesla reported a 4.8% drop in deliveries to 443,956 units. Last year, BYD’s total production, including both battery electric and hybrid vehicles, exceeded 3 million units for the second consecutive year, surpassing Tesla’s production of 1.84 million units. However, BYD’s production included 1.6 million battery electric passenger vehicles and 1.4 million hybrid vehicles, positioning Tesla ahead in pure battery electric vehicle production. BYD also lost its position as the largest electric vehicle supplier in the United States in the first quarter. Counterpoint highlighted that China “remains a dominant force in the pure electric vehicle market,” with BYD leading the charge. The research firm forecasts that by 2024, pure electric vehicle sales in China will be four times those of North America. Last month, the European Union announced additional tariffs on Chinese electric vehicle companies to counteract perceived threats to EU industry. BYD faces an additional 17.4% tariff, while Geely and SAIC face tariffs of 20% and 38.1% respectively, on top of the standard 10% import tariff for electric vehicles. These tariffs are described as temporary pending resolution with Chinese authorities, effective from July 4, as stated in a June 12 committee declaration. Counterpoint Research’s Vice Director Liz Lee commented, “The EU’s new tariffs on Chinese electric vehicles aim to create a fair competitive environment for European manufacturers who are struggling to compete with lower-priced Chinese imports.” Lee added, “These tariffs may drive Chinese automakers towards new emerging markets such as the Middle East, Africa, Latin America, Southeast Asia, Australia, and New Zealand.” The report anticipates global pure electric vehicle sales reaching 10 million units by 2024, coinciding with a continued decline in internal combustion engine vehicles. This growth is supported by efforts to improve cost efficiency and affordability of electric vehicles and batteries, as reported by CNBC’s Evelyn Cheng.
