China's BYD overtakes Tesla in sales of electric cars

BYD overtook Tesla in the last quarter of 2023 and became number one in the electric car market in the world.

The Chinese company sold a record number of cars last year, including as many as 525,409 battery electric vehicles (BEVs) in the last three-month period of 2023. Tesla announced on Tuesday that it delivered 484,507 vehicles in the same quarter, which is also a record number for them.

In the entire past year, Elon Musk's Tesla (TSLA) is still ahead of the Chinese giant with sales of 1.8 million electric cars. BYD sold 1.57 million electric vehicles, which is 73 % more than #141; than in 2022. It is also worth noting that they also sold 1.44 million hybrids.

The rapid growth of Warren Buffett-backed BYD is a symbol of China's rising electric vehicle industry.

Thanks to strong government support for the industry, China is making rapid progress in the transition to electric vehicles. The local car manufacturers are increasingly establishing themselves in Europe as well, which upsets traditional rivals such as Volkswagen and Renault. EU regulators have already started investigating Chinese state subsidies.

Beijing has set a goal that by 2025 at least 20 new energy vehicles (NEVs) will be sold annually in China, which include BEVs, plug-in hybrids and hydrogen fuel cell vehicles. By 2035, according to the government, NEVs are expected to become the first choice of new car buyers.

The first goal was achieved in 2022, approximately three years ahead of schedule. The second goal could also be achieved earlier than announced.