Chinese electric vehicle (EV) leader BYD has reached a significant milestone, surpassing Tesla in quarterly revenue for the first time.
Between July and September 2024, BYD reported earnings of over 200 billion yuan ($28.2 billion), a 24% increase from the same period last year and more than Tesla’s $25.2 billion revenue for the quarter.
Despite BYD’s revenue growth, Tesla maintained higher vehicle sales during the same period. BYD’s rise aligns with China’s push for EV adoption, backed by government subsidies to encourage people to switch from gasoline-powered cars to EVs or hybrids.
In the final month of the quarter, BYD achieved a record in monthly sales, showing strong growth for China’s top-selling automaker.
However, other countries are growing concerned about China’s state support for its EV industry. Recently, the European Union imposed tariffs of up to 45.3% on EVs made in China, mirroring the United States and Canada, which already tax Chinese EVs by 100%.
These tariffs address concerns that government subsidies in China give domestic EV makers, like BYD, an unfair advantage in global markets.
As of last week, official data indicated that 1.57 million applications had been submitted for a national subsidy, offering $2,800 for each older vehicle replaced with an eco-friendlier one.
China relies on high-tech industries to stimulate its slowing economy, with the European Union as the largest international market for Chinese EVs.
Over the past 20 years, China’s domestic car industry has grown quickly, and brands like BYD are expanding internationally, raising concerns among European automakers who worry they may struggle to compete with the lower prices of Chinese EVs.
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