5 reasons why China’s BYD electric car sales surpass Tesla

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At the end of 2023, the Chinese company BYD achieved more than… Tesla In the last quarter of 2023, BYD sold a record 526,000 pure electric vehicles, surpassing Tesla’s sales for the first time this quarter. Although Tesla’s full-year sales are still better than BYD’s, this Chinese advantage highlights several The main reason to understand this phenomenon.

5 reasons why China’s BYD electric car sales surpass Tesla

1. Control the battery supply chain

Batteries are one of the most critical and expensive parts in the electric vehicle industry, and BYD relies on its advantages in battery manufacturing to reduce production costs, which makes it significantly competitive. This direct control of the supply chain allows BYD to significantly reduce costs compared to many of its competitors, including Tesla, which rely on third-party battery suppliers, allowing BYD to offer competitive prices.

2. Flexible pricing strategy

A key factor in BYD’s advantage is its vehicle pricing strategy. The company significantly lowered the price of its cars in late 2023 to attract more customers. Although Tesla also lowered its prices, BYD has been more flexible in this regard, which has helped it attract more buyers, especially amid competition in a fierce market.

3. Diversification of new energy products and automobiles

While Tesla focuses primarily on battery-powered electric vehicles, BYD has diversified into “new energy vehicles” (NEVs) including electric vehicles and hybrids, with sales in this category exceeding 3 million vehicles in 2023. This reflects diversity.

4. Accelerating growth of global market

BYD has achieved significant growth in global markets, including China and Europe. High demand for electric vehicles and the ability to offer models at lower prices than rivals have significantly boosted its sales. choose.

5. Challenges facing Tesla

While Tesla still performed well in terms of overall annual sales, the company faces significant challenges, including slowing demand due to high borrowing costs. , despite Tesla.

Data at the end of 2023 shows that BYD’s electric vehicle sales were able to surpass Tesla’s in the last quarter of that year. This represents an important shift in the electric vehicle industry. This advantage is due to a variety of factors, the most striking of which is the The company’s capabilities.

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