In a remarkable feat for China’s automotive industry, BYD Co. has now set its sights on legacy automakers after overtaking Tesla Inc. in quarterly revenue for the first time as an electric vehicle (EV) company. The company’s extraordinary sales performance has brought it dangerously close to rivaling Ford Motor Co. in global vehicle deliveries this year, positioning BYD as a serious contender in the race to be one of the world’s top automakers.
BYD, China’s best-selling car brand, has had an exceptional run, setting a new record by selling over half a million vehicles in October alone. This impressive sales surge puts the company almost on par with Ford for year-to-date deliveries, with analysts expecting the momentum to continue into the final quarter. Ford, which reports global sales quarterly, has been averaging around 1.1 million vehicle deliveries per quarter. If BYD maintains its current pace, it could surpass the U.S. automaker by the end of the year, marking a significant milestone for the Chinese company.
“Getting to four million is a stunning milestone,” said Michael Dunne, an auto industry consultant. “BYD will soon be seeing Ford in the rear-view mirror.” BYD’s target of four million vehicles annually is now within reach, as its rapid growth continues to outpace expectations. Demand in China has been buoyed by government subsidies that incentivize consumers to trade in older combustion engine cars for new EVs, coupled with BYD’s strong lineup of hybrid vehicles that cater to consumers not yet ready to fully transition to electric cars.
Dunne, a former General Motors executive, referred to BYD’s sales acceleration as “velocity without precedent,” noting that the company’s third-quarter performance was particularly impressive. During this period, BYD managed to outsell Ford by 40,000 units, delivering around 1.13 million vehicles, which included a mix of passenger cars, trucks, and buses. The company’s ability to quickly ramp up production has made it a major player in the global automotive market.
As BYD continues to expand, legacy carmakers like Ford are finding the competitive landscape increasingly difficult to navigate. Established automakers, including Nissan Motor Co., Volkswagen AG, and Stellantis NV, are all grappling with shrinking profits, excess capacity, and bloated workforces. The rise of Chinese automakers like BYD, which have a competitive edge in terms of cost and innovation, is forcing these companies to reevaluate their strategies.
Despite BYD not selling passenger vehicles in the U.S. market, its growth trajectory is undeterred. Senior Vice President He Zhiqi recently announced that BYD had increased its production capacity by nearly 200,000 units between August and October, hiring a similar number of people to support its expanding assembly and components businesses. In October alone, BYD produced 534,003 vehicles, demonstrating its ability to scale operations quickly and efficiently.
“BYD has no peer in the world right now,” said Tu Le, an automotive expert at Sino Auto Insights. “Legacy automakers just seem to be collateral damage as BYD goes like a freight train toward becoming the largest automaker in the world.” The company’s success story is underlined by its aggressive expansion strategy and ability to capture market share in a variety of regions, including Southeast Asia, Europe, and Latin America.
More Read
Nissan, which has been in the news recently for cutting payrolls, production, and lowering its financial forecasts, could soon be overtaken by BYD in terms of revenue. As Nissan struggles with its internal issues, BYD’s rapid growth makes it poised to surpass the Japanese automaker in the near future.
In addition to its sales success, BYD is also climbing the ranks among the world’s most valuable automakers by market capitalization. Back in June 2022, when BYD’s Hong Kong-listed stock hit an all-time high, the company’s market value exceeded that of Ford, General Motors, and Stellantis combined. Although it did not quite surpass this milestone last month, it’s clear that BYD’s momentum is pushing it toward achieving this feat. With its continued success and a growing presence on the global stage, it’s only a matter of time before BYD’s market capitalization surpasses that of its legacy competitors.
As BYD rapidly approaches key industry benchmarks and challenges established automakers, the global automotive industry is undergoing a profound transformation. With its aggressive strategy and unmatched production capabilities, BYD is positioning itself to become a dominant force in the automotive world, forcing companies like Ford and others to confront the changing tides of the industry. The competition is only getting fiercer, and BYD’s remarkable rise signals a new era for the automotive sector.
