BEIJING (Reuters) – The battle for supremacy in the electric vehicle (EV) market continues as BYD, China’s biggest EV maker, reported a 43% drop in sales in the first quarter of 2024 compared to the previous quarter, relinquishing the title of the world’s biggest EV seller back to Tesla.
BYD sold 300,114 EVs in the first quarter of this year, down from a record high of 526,409 units in the previous quarter. Despite the decline, BYD’s first-quarter sales were still up 13.4% from a year ago. On the other hand, Tesla saw a 20.2% drop in deliveries in the first quarter, selling 386,810 vehicles.
The shift in leadership comes as a result of softer demand in the Chinese market, where local rivals like BYD engaged in a price war to attract buyers. Tesla managed to sell 89,064 China-made vehicles in March, a slight increase from the previous year.
The competition between BYD and Tesla highlights the global influence of both companies in the EV market. While both companies anticipate a slowdown in Chinese EV sales growth this year, they continue to innovate and compete for market share.
BYD’s response to Tesla’s price cuts last year included reducing prices on its latest models by 5%-20%. Despite the setback in sales, BYD remains optimistic about its future prospects, setting a sales target of 3.6 million units for 2024, a 20% increase from the previous year.
The EV market is dynamic and competitive, with companies like BYD and Tesla constantly vying for dominance. As the industry evolves, it will be interesting to see how these two giants continue to innovate and adapt to changing market conditions.