Chinese auto giant BYD surpasses Tesla, driven by innovative tech and hybrid car surge
In a landmark shift in the global electric vehicle market, Chinese automaker BYD has reported surpassing Tesla in annual sales revenue for 2024, asserting its dominance with a strong portfolio of fully electric and hybrid models.
BYD, headquartered in Shenzhen, saw its revenue soar 29% to an impressive 777 billion yuan (£83 billion, $107 billion), significantly exceeding Tesla’s annual revenue of $97.7 billion. Central to BYD’s growth was the popularity of its hybrid vehicles, which have become highly attractive amid evolving market preferences and economic pressures.
Sales volumes also underscore BYD’s market strength. In pure EV sales alone, BYD closely matched Tesla, with approximately 1.76 million units compared to Tesla’s 1.79 million. However, factoring in hybrids, BYD’s global vehicle sales rocketed to an unprecedented 4.3 million units.
This milestone achievement coincides with BYD’s strategic push in pricing competition, notably with its newly released Qin L model, aimed squarely at Tesla’s Model 3. Priced starting at just 119,800 yuan in China, the Qin L significantly undercuts the Model 3, which has an entry price of 235,500 yuan. This aggressive pricing strategy positions BYD to capture a substantial share of budget-conscious consumers increasingly wary amid China’s economic slowdown, high local government debt, and property market woes.
Further solidifying BYD’s competitive edge is its recent unveiling of groundbreaking “Super e-Platform” battery technology, which promises a full EV charge within five minutes—three times faster than Tesla’s best charging systems. Additionally, BYD announced free inclusion of its advanced driver-assistance technology, named “God’s Eye,” across all models, heightening the value proposition for consumers.
Meanwhile, Tesla faces mounting global pressures. Elon Musk’s recent controversial political affiliations and appointments, notably his role within the Trump administration’s Department for Government Efficiency, have triggered backlash internationally. These developments come at a challenging time as Western markets increasingly target Chinese manufacturers, including BYD, with tariffs and trade barriers.
Investor confidence reflects BYD’s ascension. The automaker, notably backed by renowned US investor Warren Buffett, has seen its shares increase by more than 50% this year, further indicating strong market belief in its growth trajectory.
As BYD moves forward, its ambitious technological advancements and keen pricing strategy underscore its potential to continue reshaping the global automotive landscape, intensifying competition, and setting new standards in electric and hybrid vehicle markets.
