China's BYD Sees Solid Rise in EV Sales in Second Quarter

Chinese carmaker BYD has maintained its steady growth at home, selling 426,039 electric vehicles in the second quarter.

That figure, a calculation by Reuters based on its monthly sales reports, represents a 21% rise in sales during the first quarter.

That’s around 12,000 vehicles fewer than Tesla’s vehicle deliveries estimated for the second quarter, and shows the top local brand is closing the gap with its US rival, after handing back the world’s top EV vendor title to Tesla in the first three months of 2024.

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All eyes on Tesla Q2 sales

Tesla is expected to report a 6% drop in April-June quarter vehicle deliveries later on Tuesday, and if confirmed, that will be the first time the US firm is set to post two straight quarters of decline. It stems from stiff competition in China and slow demand due to a lack of affordable new models.

The company may again cede its EV championship to BYD if the actual results turn out to be softer than estimated, with Barclays predicting an 11% drop in second-quarter deliveries, Tesla’s biggest ever.

Tesla has hit a speed bump after years of rapid growth that helped make it the world’s most valuable automaker. It warned in January that deliveries growth in 2024 would be “notably lower” as a boost from months-long price cuts wanes.

The EV maker has cut output of its best-selling Model Y electric car by a double-digit percentage number at its Shanghai plant since March to address weakening demand for its older models in China, its second-largest market after the United States.

By comparison, its top Chinese competitor BYD maintained steady growth in EV sales, while EV upstarts such as Nio reported stellar growth last quarter. NIO’s vehicle deliveries in the second quarter more than doubled to 57,300 units.

Price cuts and a growing shift in consumer demand to EVs and hybrids from gasoline-powered vehicles are the main reasons behind Chinese EV makers’ strong sales in recent months, Cui Dongshu, secretary general, China Passenger Car Association (CPCA), said.

Sales of new energy vehicles including EVs and plug-in hybrids in China made up 46.7% of total car sales in May, a fresh monthly high, as per CPCA data.