I think an industry shakeout is an inevitable trend. But it’s still uncertain who will seize the future leading position in the long term.Cui Dongshu, secretary general of the China Passenger Car Association said about Tesla and BYD’s rivalry for top selling electric vehicle.
Why It Matters: As electric vehicles rise in popularity, the race for top carmaker continues. BYD, a China-based automaker, surpassed Tesla in the last three months of the year to become the world’s bestselling electric vehicle (EV). While BYD sold 526,000 battery-only vehicles in the fourth quarter, Tesla sold over 484,000. However, Tesla remains the top seller of the year.
Important To Note: BYD has a stronghold in China, but doesn’t sell as much in the U.S. While EVs from China are cheaper, “…the U.S. is determined to block imports of Chinese EVs” (Axios).
According to Axios, EVs accounted for 9% of auto sales in the U.S. in 2023 as most Americans, searching for an affordable vehicle, do not have a wide market to choose from. “The U.S. has two competing policy objectives. From a climate perspective, it should love the fact that China is capable of producing some 36 million EVs per year…From a strategic perspective, however, the U.S. hates the idea that Chinese imports might undercut domestic manufacturers” (Axios).
by Sarah Pinkerton,