BYD Co Ltd., the Chinese electric vehicle (EV) powerhouse, announced phenomenal November sales figures, solidifying its position as a major player in the global automotive market. The company reported a staggering 68% year-over-year increase in new energy passenger vehicle sales, reaching a total of 506,804 units. This surge is largely attributed to a remarkable 133% jump in plug-in hybrid passenger vehicle sales, reaching 305,938 units. Pure electric vehicle (BEV) sales also saw significant growth, increasing by 16.4% to 198,065 units.
This impressive performance underscores BYD’s aggressive expansion strategy and its diversified approach to the EV market. Unlike Tesla, which focuses solely on battery electric vehicles (BEVs), BYD offers a comprehensive range encompassing both BEVs and plug-in hybrids, catering to a broader spectrum of consumer preferences and needs. This strategic diversification has proven remarkably effective, driving substantial sales growth.
The November sales figures represent a significant milestone for BYD, especially considering its recent history in relation to its primary competitor, Tesla. While Tesla reclaimed the title of world’s largest BEV seller in the first quarter of 2024, BYD’s recent performance speaks volumes. Even more impressively, BYD surpassed Tesla in quarterly revenue for the third quarter of 2024 (July-September), reporting an operating revenue of 201.12 billion yuan ($28.25 billion), compared to Tesla’s $25.18 billion. This marks the first time since 2022 that BYD has outperformed Tesla in this key financial metric.
However, it’s crucial to note that despite this revenue triumph, BYD’s net profit still lags behind Tesla’s. While BYD reported diluted earnings per share of 4 yuan (56 cents) for the third quarter, Tesla’s adjusted earnings per share reached 72 cents. This highlights the complexities of profitability within the EV industry and the different approaches taken by both companies.
BYD’s phenomenal growth is not just a matter of luck; it’s a result of strategic planning and aggressive expansion. The company ceased production of combustion engine vehicles in March 2022, fully committing to its EV future. Furthermore, BYD’s executive vice president, He Zhiqi, recently announced a significant recruitment drive, adding over 200,000 employees between August and October to bolster car and component manufacturing and boost production by nearly 200,000 vehicles. November’s production alone hit 540,588 new energy vehicles, a substantial increase compared to 316,510 in November 2023. This demonstrably aggressive expansion is clearly paying dividends.
In conclusion, BYD’s November sales figures showcase remarkable growth and a strategic approach that continues to challenge Tesla’s dominance. While Tesla still holds an advantage in profitability, BYD’s aggressive expansion and market diversification paint a picture of a formidable competitor, poised to continue its ascent in the global EV market.
