Tesla and BYD, two prominent players in the electric vehicle market, achieved record deliveries of their China-made vehicles in the second quarter of this year. The China Passenger Car Association (CPCA) data revealed that Tesla sold 93,680 China-made EVs in June, marking an 18.72% increase from the previous year. This surge in sales follows the two-month COVID-19 lockdown in Shanghai, which affected Tesla’s production in 2020. Over the April-June period, Tesla sold a total of 247,217 China-made cars, the highest since its Shanghai factory started delivering vehicles in early 2020. Tesla reported a global record of 466,140 deliveries for the second quarter.
Meanwhile, BYD, Tesla’s chief Chinese rival, experienced an 88.16% year-on-year sales surge in June, selling 251,685 vehicles from its Dynasty and Ocean series of EVs and petrol-electric hybrid vehicles, according to CPCA data. This marked the first time BYD’s monthly sales surpassed 250,000 units. From April to June, BYD delivered a total of 700,244 vehicles, reinforcing its position in the Chinese market.
The robust sales figures for both companies indicate their ability to outperform competitors in a market that is experiencing a slowdown in overall auto sales due to a softening economy. To boost sales, Tesla reduced prices for its older models at the beginning of the year, triggering a price war in the industry. This move prompted competitors, including BYD, to offer discounts or introduce new lower-priced models.
Furthermore, the Chinese government is providing additional support to the EV sector, aiming to stimulate sales and bolster the country’s economic recovery. In June, Beijing announced purchase tax breaks worth 520 billion yuan ($71.67 billion) on new-energy vehicles until the end of 2027. However, there are caps on the tax exemption that might contribute to the growth of sales for cheaper models predominantly produced by domestic firms, rather than premium vehicles from foreign manufacturers.
Conclusion
The record-breaking sales achieved by Tesla and BYD highlight their dominance in the Chinese EV market. Tesla’s success can be attributed to its established presence and reputation as a premium EV brand, while BYD’s strong performance is supported by its diverse range of EV and hybrid vehicle offerings. With the Chinese government’s continued support for the EV industry and the companies’ competitive strategies, Tesla and BYD are well-positioned to maintain their market leadership and capitalize on the growing demand for electric vehicles in China.
