BYD may overtake Tesla in global pure EV race

BYD may become the world's top-selling pure electric vehicle maker in the fourth quarter, challenging Tesla's dominance, according to a recent report.

Global market research firm Counterpoint Research said BYD's share — excluding its joint venture with Mercedes-Benz — in the pure EV market equaled that of Tesla in the third quarter, with each of the companies holding 17 percent.

Expected to surpass Tesla in the fourth quarter, BYD is poised to become the world's top-selling pure EV brand, the report said.

Pure EVs, or battery EVs, run with only one power source — electric batteries. Other types include plug-in hybrid EVs and fuel-cell EVs.

In the third quarter, Tesla delivered over 435,000 pure EVs, closely trailed by BYD's delivery of 431,600 units. While Tesla experienced a 6.7 percent quarter-on-quarter decline in deliveries, BYD's pure EV deliveries saw a robust 22.5 percent increase, said the report.

Soumen Mandal, senior analyst at Counterpoint Research, said China still commands 58 percent of the global pure EV market, followed by the United States at 12 percent. Germany emerged as the third-largest pure EV market, boasting a growth rate exceeding 60 percent.

As BYD saw sales surge, its financial performance followed suit. According to its financial report, third-quarter profit stood at 10.4 billion yuan ($1.46 billion), marking an 82.2 percent year-on-year surge. Last year, the company's profit rocketed around 445.9 percent year-on-year to 16.62 billion yuan.

US investment bank Morgan Stanley said in a report that BYD's performance surpassed market expectations. Analysts believe that with increased sales of high-end vehicles and sustained global expansion, BYD can maintain profitability in the coming year.

Strong overseas sales have been a key driver of this performance growth. Wang Chuanfu, BYD's chairman, said in June that the company is prepared to meet growing demand abroad.

Monthly reports from BYD highlighted a notable growth in overseas sales of new energy vehicles in the third quarter, which grew from just slightly over 10,000 units in May and June to 18,200 units in July, then jumping to 25,000 units in August.

In September, BYD broke records again with overseas sales reaching 28,000 units. The growth continued in October and November, with sales abroad of its NEVs reaching 30,629 units last month.

BYD said that its NEVs are now available in 53 countries and regions.

Cui Dongshu, secretary-general of the China Passenger Car Association, highlighted the increasing international presence of Chinese brands in the new energy product market.

With growing overseas recognition and a well-established service network, Chinese brands are targeting developed countries and have a positive market outlook, Cui said.

Cui also said he expects that over the next two years, the government's efforts to promote NEV consumption will intensify, driving rapid industry development.

A rapid growth in NEV sales is likely in early 2024, driven by various measures, including the issuance of consumer vouchers, he added.