Chinese automaker, BYD Co. BYDDY BYDDF, backed by Warren Buffett‘s Berkshire Hathaway, is on the brink of becoming the global leader in battery electric vehicle sales, eclipsing Tesla Inc. TSLA. This indicates a significant transformation in the EV market, underscoring China’s rising dominance in the international automobile industry.
What Happened: Chinese carmaker BYD is poised to push past Tesla in worldwide EV sales this quarter, according to a report by Bloomberg on Tuesday.
Even though the industry is still largely controlled by traditional auto giants like Toyota Motor Corp., Volkswagen AG, and General Motors Co., Chinese manufacturers like BYD and SAIC Motor Corp. are making significant strides. As of October this year, China had exported 1.3 million of 3.6 million vehicles, all electric.
Bridget McCarthy, head of China operations for Snow Bull Capital, noted the changing competitive landscape of the auto industry, indicating that innovation and agility are the key driving factors now, as per the report.
In the third quarter, BYD’s battery electric vehicle sales reached 431,603 units, slightly below Tesla’s figure of 435,059. However, when combining the sales volumes for October and November, BYD reported a total of 335,655 units. In comparison, Tesla is anticipated to achieve approximately 480,000 units in the fourth quarter.
This shift in leadership brings to the forefront a new competitive dynamic between Tesla’s CEO Elon Musk and BYD’s billionaire founder Wang Chuanfu, Bloomberg reported.
Why It Matters: The rise of BYD reflects China’s aggressive thrust into the EV market. The company has been expanding its global footprint, with plans to establish a new energy vehicle production base in Hungary, signifying its growth in the European market.
In response to this growing competition, Tesla has been strategizing to maintain its market position. According to reports, the company is preparing for a major overhaul of its Model Y from its Shanghai plant.
Despite the challenges of potential tariffs and trade tensions, BYD’s success marks a pivotal milestone in the global EV market, indicating a shift in the power dynamics of the industry.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.