By Greg Gao
(JW Insights) Nov 3 -- China's EV behemoth BYD is closing its delivery gap with Tesla and is projected to overtake Tesla as the quarterly sales leader in the fourth quarter this year, said Taiwanese media outlet Anue, citing Wall Street analysts.
BYD announced its electric vehicle sales for October on November 1, selling a total of 301,100 passenger cars, including 165,500 pure electric vehicles, a 60% year-on-year growth, and 135,600 plug-in hybrid vehicles, a 19% year-on-year increase.
For the entire third quarter, BYD's pure electric vehicle shipments totaled approximately 432,000 vehicles, while Tesla delivered approximately 435,000 vehicles. This marked the closest competition between the two companies in history.
The increasing sales of BYD's battery electric vehicles indicate a vast market for affordable electric cars and also highlight a gamble made by Tesla CEO Elon Musk, namely, the delayed production of lower-priced vehicles. While Tesla’s electric pickup Cybertruck is on the horizon, the launch time for the lower-priced compact model remains uncertain.
Furthermore, it's essential to note that the majority of BYD's vehicle sales are concentrated in China, while Tesla sells in all major global markets. Tesla's vehicles also have a higher price point compared to BYD; Tesla's average price per vehicle sold is approximately $54,000, whereas BYD's average price is roughly $28,000.
Aside from BYD, other companies like NIO, XPeng, and Li Auto collectively achieved a total sales volume of about 76,500 vehicles in October, marking a nearly 200% year-on-year increase. These four electric vehicle manufacturers account for 30% to 40% of China's total pure electric vehicle market.
As of September, Tesla's sales in China were approximately 433,000 vehicles, a 36% year-on-year increase. Market researchers anticipate that Tesla's full-year shipments will reach approximately 1.8 million vehicles, ensuring its place as the annual champion. BYD's full-year pure electric vehicle shipments are estimated at about 1.5 million.
According to UBS analysts led by Patrick Hummel, BYD enjoys a cost advantage of approximately 25% compared to traditional automakers.
Scale brings profitability, and these two companies are the only two electric vehicle manufacturers in the world that are consistently profitable. In recent months, the price competition in the Chinese electric vehicle market has intensified, with several companies having to lower prices to maintain market share, according to the Anue report.
