BYD beats Tesla for a second straight year after producing more than 3 million cars in 2023

Key Points

• BYD’s Production and Sales Performance: BYD announced the production of over 3 million new energy vehicles in 2023, surpassing Tesla’s production for the second consecutive year. While Tesla produced 1.84 million cars in 2023, BYD’s total production included 1.6 million battery-only passenger cars and 1.4 million hybrids, leading Tesla in battery-only production. BYD’s cars typically sell at a lower price range than Tesla’s, and the majority are available in hybrid versions. Despite achieving over 3 million in production, BYD’s annual sales slightly missed CLSA’s expectations for 3.05 million vehicles.
• Competition in China’s Electric Car Market: The article highlights the increasing competition in China’s electric car market, with various companies making strides. Li Auto, for example, is set to launch its first purely battery-powered vehicle, MEGA, in March. The startup, known for cars with a fuel tank to charge the battery, delivered over 50,000 cars in December. Xpeng launched its X9 MPV, reporting a 17% YoY increase in overall electric car deliveries to 141,601 in 2023, with a record 20,115 vehicles delivered in December. Other companies like Huawei’s Aito, Zeekr, Nio, Nezha, and Aion also reported significant achievements.
• Overseas Expansion and Market Push: BYD’s overseas sales in 2023 exceeded 242,000 new energy passenger vehicles, reflecting a push into markets outside China, particularly in Europe. BYD aims to build a new production center in Hungary and plans to launch three more models in Europe within the next 12 months. The move aligns with the broader trend of Chinese electric car players, including Nio and BYD, expanding into markets outside China. Analysts suggest that overseas expansion, including building factories, is crucial for China’s leading carmakers to achieve long-term success in the global market.