BYD keeps ruling the roost in the electric car industry

Chinese electric car manufacturer BYD manages to outperform all competitors, including Tesla.

BYD, the global frontrunner in electric vehicle (EV) production, set an impressive sales record in June, illustrating a strong revival in demand following a failed attempt to spur consumer interest via a price war. This EV and battery titan, based in China, observed sales surpassing a quarter-million units last month, eclipsing its earlier record set just a month prior.

BYD reports that the sales of new energy vehicles in June almost doubled from the same period last year, reaching a staggering 253,046 units, compared to the 134,036 units sold in June 2022. This significant sales surge underscores the escalating popularity of EVs within the world's most substantial automobile market, predominantly fueled by an increase in consumer enthusiasm and the economic upswing in China.

In the first half of the current year, BYD's shipments also saw a near doubling, totaling to 1.2 million units. This success was facilitated by China's favorable economic climate and the mitigation of industry disturbances caused by the COVID-19-induced lockdowns in Shanghai a year prior. Even amidst intense pricing competition, BYD maintains a market capitalization of $100 billion, exceeding both General Motors (GM) and Ford.

BYD keeps ruling the roost in the electric car industry

This positive trend isn't confined to BYD alone; Li Auto, a smaller Chinese EV manufacturer headed by billionaire Li Xiang, also reported a significant 150% year-on-year sales surge in June, delivering 32,575 vehicles. EV companies such as Shanghai-based Nio, Guangzhou-based Xpeng, and Tesla’s Gigafactory in Shanghai, all witnessed considerable increases in deliveries, mirroring the growing EV demand in China.

Nio achieved a 75% increase in customer deliveries compared to the previous month, handing over 10,707 cars. Xpeng marked its best sales of the year so far, with a month-on-month leap of 14.8% in deliveries, totaling 8,620 units. Tesla, while not disclosing monthly sales figures, had its Gigafactory in Shanghai deliver 42,508 vehicles in May, as per the data from the CPCA, a 6.4% increase from the prior month.

These remarkable sales numbers from BYD and Li Auto represent a significant consumer shift toward electric mobility as the Chinese EV market attains stability. However, this increase in battery-powered vehicle sales has impacted petrol-powered vehicle sales in the world's largest automotive market. As per CPCA data, China experienced a 7% decline in petrol car sales, with only 5.21 million units sold in the first five months of 2023.