Updated posts 2026
In 2023, BYD outpaced Tesla for the second consecutive year by producing over 3 million new energy vehicles. According to Tesla’s recent announcement on Tuesday, their production for the same year stood at 1.84 million cars. Notably, BYD offers a range of affordable hybrid and battery-only cars, catering to a wider customer base compared to Tesla.
Tesla leads the way in battery-only car production, surpassing BYD with a total of 1.6 million battery-only passenger cars manufactured. Additionally, BYD has produced 1.4 million hybrids, which accounts for much of the gap between the two headline figures.
The comparison turns on a definitional point worth making explicit. “New energy vehicle” is a Chinese regulatory category covering both battery-electric cars and plug-in hybrids, while Tesla builds only the former. Set the two companies side by side on battery-only production and they are close; include hybrids and BYD is comfortably ahead. Neither framing is wrong, but headlines declaring one company to have overtaken the other rarely specify which measure they are using.
Elon Musk’s automaker, which exclusively sells electric cars, saw significant sales from China in the last quarter. Meanwhile, BYD shares experienced a decline of over 2% during Tuesday morning’s trading session in Hong Kong.
BYD’s annual sales slightly fell short of CLSA’s expectations for 3.05 million vehicles, but still exceeded the impressive 3 million mark. In 2023, BYD reported the sale of 3.02 million new energy vehicles, having discontinued the production of gasoline and diesel-powered cars in March 2022.
Intense Competition Intensifies
Companies are flocking to China’s rapidly growing electric car market, introducing a multitude of new models. Xiaomi, a leading Chinese smartphone manufacturer, recently unveiled its plans to enter the EV space and compete with Porsche and Tesla.
Li Auto, a leading electric vehicle manufacturer, is experiencing a surge in monthly deliveries. Exciting news: their first all-electric vehicle, MEGA, is scheduled to launch on March 1st, with deliveries starting later in the month. This update comes slightly later than the initial projections for February.
Li Auto, the startup, has achieved remarkable success with its innovative cars that feature a fuel tank to charge the battery and extend the driving range. In December alone, Li Auto delivered over 50,000 cars, contributing to a total of 376,030 cars delivered in 2023, marking an impressive 182% year-on-year increase.
Xpeng has recently introduced the X9 MPV, a smart and spacious seven-seater vehicle, with immediate deliveries available. The renowned Chinese EV manufacturer reported a remarkable 17% YoY increase in electric car deliveries, reaching a total of 141,601 in 2023. Notably, December saw a record-breaking 20,115 vehicle deliveries.
Huawei’s latest energy vehicle brand, Aito, announced on Monday that orders for its M9 SUV have exceeded 30,000 within just one week of its launch. The mass deliveries of the M9 are scheduled to commence in late February.
In 2023, Aito reported delivering a total of 94,380 cars, with 24,468 of them delivered in December alone. Since commencing deliveries in March of 2022, Aito has successfully delivered over 75,000 cars.
Zeekr, supported by Geely, announced the launch of its newest electric sedan, the 007. Starting Monday, Zeekr commenced deliveries of this cutting-edge model. In 2023, Zeekr achieved a remarkable 65% increase in overall deliveries, reaching a total of 118,685 units.
The total figure is still lower compared to Nio’s delivery of 160,038 cars in 2023, showing a year-on-year growth of almost 31%. In December alone, Nio delivered over 18,000 cars.
In China’s electric car market, Nezha delivered an impressive 127,496 cars in 2023. Aion, a spinoff of state-owned GAC Motor, saw a remarkable 77% year-on-year increase with over 480,000 cars sold in the same year.
Overseas Growth
Nio and BYD, along with other Chinese electric car manufacturers, are expanding their presence in global markets, with a particular focus on Europe.
According to publicly available data, BYD achieved impressive overseas sales of over 242,000 new energy passenger vehicles in 2023. However, comparable figures for 2022 were not disclosed by the company.
Chinese EV giant, BYD, recently announced its plans to establish a new production center in Hungary. With a current lineup of five models available in Europe, BYD aims to introduce three additional models specifically designed for the region within the next year.
China’s EV market is at the forefront of the industry, but for long-term global success, leading Chinese carmakers must expand overseas by establishing factories in foreign markets instead of solely relying on vehicle shipments from China. According to a note by Nomura China autos analyst Joel Ying and team on Jan. 2, this strategic move is crucial.
According to the report, BYD’s decision to establish the first PV factory in Hungary is driven by the aim to mitigate risks in the overseas market. This move is seen as advantageous given the company’s existing bus factory in Hungary.
In December, BYD reported a remarkable sales increase in new energy passenger vehicles sold overseas. The number reached an impressive 36,095 units, which is more than triple compared to the previous year. This growth signifies the rising demand for eco-friendly vehicles in the global market.
Also read: Stellantis Teams Up with Leapmotor in $1.6 Billion Investment for Chinese EV Market
