BYD overtakes Tesla in EV sales in first half of 2023, reports Finbold

The electric vehicle (EV) sector undergoes a significant transformation in terms of market share in 2023. While Tesla has been the leader in EVs for a long period, the first-half year experienced a remarkable global market share dynamic shift, with China-based BYD stealing the spotlight.

Finbold, a financial news platform which provides financial news on stock market, banking and other relevant sectors, acquired data on Plug-in EVs sales in the first half of 2023.

According to Finbold’s data, BYD sold over 1,191,405 EVs, representing an average of 198,567 units per month, in the first-half year. BYD’s unit sales surpassed Tesla’s 888,879 by 302,526 vehicles. The units include battery EVs and plug-in hybrid EVs.

Finbold’s data reflect that BYD’s EVs sales surpassed Tesla’s in the first half of 2023.

Other top sellers include BMW, with 220,795 units; followed by GAC Aion at 212,090 EVs and Volkswagen sold 209,852 units.

Notably, among the top eight EV sellers, only manufacturers from China, Germany and the US are represented. Among them, China accounts for four manufacturers, or 50% of the list.

BYD’s strategic advantages in Chinese market

Finbold’s research found that several factors, specifically from the domestic market, have contributed to the Chinese brand’s success.

BYD has been committed to offer value for money. As the company’s vehicle models are priced lower than their foreign competitors, it coincides with local demand for homemade affordable products amid a slowing Chinese economy.

BYD fulfils local customers' demand for homemade affordable products.

BYD demonstrates a high cost-efficiency in its production – it manufactures most components itself, and any others it does not produce are readily available from Chinese suppliers. With such cost reduction and high cost-efficiency, it is particularly advantageous during supply chain disruption in pandemic, which affected manufacturers like Tesla, the research says.

During the COVID-19 pandemic, BYD’s strategic location in Shenzhen also contributes to its success as the city experienced fewer stringent lockdown measures than Shanghai, where Tesla operates its largest overseas plant.

In addition, like other Chinese EV manufacturers, BYD has thrived from incentives offered by the Chinese government such as subsidies and tax breaks, to encourage the adoption of low-emission vehicles.

Tesla’s action to catch up

On the other hand, like many other companies, one of the reasons that causes Tesla’s trailing behind BYD is the supply chain disruption due to pandemic, which affected its production numbers. However, the company aims to catch up with its competitors by commencing production at the Austin facility in the US.

The company has implemented several strategic measures to boost sales, including significantly reducing prices, especially for older models. CEO Elon Musk also hinted in July that the company may continue with such reductions in the future.

Finbold’s research also pinpoints that China ranks top among Tesla’s markets. The American EV leader has also reduced prices in the region while increasing discounts and other incentives to manage inventory and protect against competition and economic uncertainty.