BYD may lose its position as the top EV seller to Tesla after experiencing a 43% sales drop in the first quarter of 2024. This development marks a potential shift in the competitive dynamics between the two leading electric vehicle manufacturers, which have been vying for dominance in the global EV market.

In the period ending March 2024, BYD sold 300,114 EVs, a dramatic fall from the 526,409 units it moved in the previous quarter, outperforming Tesla. However, this figure still marks a 13.4% increase over the same period in the previous year, according to a filing with the Shenzhen Stock Exchange.

Tesla Set to Reclaim Top Spot

Analysts now foresee Tesla reclaiming the title of the top EV seller. With Tesla’s first-quarter sales report due on Wednesday, expectations are high for a record 458,500 vehicle sales for the quarter ending March 31, despite a more than 5% dip from Tesla’s previous quarter sales. These projections, by Visible Alpha, come amidst softening demand and a competitive slowdown, especially in China’s market.

The race between Tesla and BYD highlights the intense competition in the global market, particularly in China, where both companies expect slower growth in EV sales this year. BYD briefly took the lead from Tesla, mainly through aggressive pricing strategies within China.

For Q1 2024, BYD reported total vehicle sales of 626,263 units, up 13.4% from last year but down 33.7% from Q4 2023. March saw a surge, with 302,459 vehicles sold, including 139,902 purely electric models and 161,729 plug-in hybrids, reflecting significant yearly growth.

Market Adjustments and Forward Strategy

Following Tesla’s price cuts early last year, BYD also revised its pricing strategy, reducing prices on its newest models by 5% to 20% since February.

With an ambitious target of 3.6 million units for 2024, marking a 20% increase over its previous year’s sales, BYD aims to sustain its competitive stance in the evolving EV market, as per Reuters. This goal underlines BYD’s commitment to not just compete but thrive in the global electric vehicle landscape.

The Race to Being a Top EV seller

The coming months will be crucial in determining whether BYD can regain its sales momentum or if Tesla will once again emerge as the top EV seller. The outcome of this competition will likely have far-reaching implications for the future of electric mobility.

Image Source: Beev