ALBAWABA - The Chinese electric car manufacturer BYD has achieved a significant milestone, surpassing Tesla in quarterly revenue for the first time. Demonstrating the company's growing dominance in the EV industry.
Over the course of the third quarter, BYD recorded sales of 201.1 billion yuan ($28.2 billion), marking a 24% increase over the previous year and surpassing Tesla's $25.2 billion, according to Bloomberg, reflecting BYD's dominant market position, particularly in China, where it leads the market in both hybrid and electric vehicle industries.
Strategic advantages contributed to BYD's success; the company's vast line of hybrid cars has expanded its market, notably in China, where hybrids are still popular. BYD hybrid vehicles with upgraded powertrains have ranges over 2,000 kilometers, addressing consumers’ requirement for extended range without charging stations.
Another advantage BYD has is its vertically integrated supply chain, which lets it manufacture essential vehicle components in-house, Bloomberg reports. This integration lowers manufacturing costs and speeds scaling, giving it an edge against Tesla, which has a restricted all-electric process.
China's government incentives to switch to EVs and hybrids have further fueled local demand for BYD cars, which sold 2.74 million units so far this year. BYD's market share is expected to rise during China's peak buying season in Q4, when government-mandated EV purchases will boost demand.
However, BYD’s road to international expansion is not free of bumps, particularly in Europe, as the European Union has recently imposed tariffs as high as 45% on Chinese-made EVs, in a move to protect local automakers from price competition. Additionally, high tariffs have kept BYD out of the U.S. market, leaving Tesla a dominant player there.
