Price and Small Models Are the Secret to Its Superiority

The price and small models are the secret to its superiority.

 BYD Overtakes Tesla: A Chinese Attack Sweeps Electric Vehicle Markets

2024 was an exceptional year for the Chinese company BYD, which succeeded in establishing itself as the world's largest electric vehicle manufacturer, dealing a severe blow to its American competitor, Tesla.

For the first time, BYD surpassed third-quarter revenues, and then achieved another milestone in the fourth quarter by delivering more fully electric vehicles than Tesla.

Outperforming Emerging Markets

BYD is focusing on non-Western markets, where Tesla has a limited presence, and is successfully attracting buyers thanks to its low prices, according to a report published by Rest of World. According to a specialized analysis covering 10 non-Western countries and regions, including Mexico, Chile, the UAE, China, Hong Kong, South Korea, Japan, Thailand, Malaysia, and Singapore, BYD's cheaper cars were significantly lower than the Tesla Model 3.

In some markets, such as Thailand, the price difference between the Model 3 and the BYD Dolphin exceeded $30,000, while in Japan it was around $12,000.Singapore saw significant price convergence, but BYD remained the best-selling brand there in 2024.

Secrets of Superiority

BYD produces smaller, cheaper models like the Seagull and Dolphin, allowing for the use of smaller, less expensive batteries, the most expensive component in an electric vehicle. The company also relies on local dealers in markets in Africa, the Middle East, and Southeast Asia, which reduces sales costs.

In contrast, Tesla focuses on the Americas and Europe, is not present in Africa or most of Asia, and sells in only two Latin American countries. In Brazil, for example, BYD models accounted for nearly 60% of electric vehicle sales in 2024.

Bold Expansion Plans

BYD is not content with existing markets; it is also seeking to build factories outside China to reduce export costs. 2025 is expected to witness a new leap in its global production, and it may impose its price dominance on an unprecedented scale. Analyst George Whitcomb summarizes the situation by saying, "BYD is moving into markets that competitors have not yet reached and is poised to become the strongest player in the future of electric vehicles."