Chinese carmaker BYD dethroned Tesla in the fourth quarter of 2023 as the world’s best-selling electric vehicle maker as a result of the growing demand for emission-free mobility in China, which is globally the largest vehicle market. Tesla delivered a record 484,500 electric vehicles in the last three months of 2023, roughly 40,000 less than BYD. This is the first time that BYD outsold Tesla in terms of battery-only vehicle sales on a quarterly basis. For the whole of 2023, Tesla still sold more, standing at 1.81 million units, while BYD sold 1.57 million electric vehicles, up 73% year-on-year. BYD’s rise to global fame is a symbol of China’s growing competitive edge in the new energy vehicle (NEV) sector. The nation started fostering the sector in 2009, when most other countries deemed it too early to do so. The early mover advantage, coupled with favorable government policies and growing charging facilities, has seen China become the world’s largest NEV market and one of the most important sources of innovation in the sector.
The China Association of Automobile Manufacturers (CAAM), which is scheduled to release collated figures in mid-January, said that NEV sales in China were expected to hit 9 million units in 2023. In the first 11 months, NEV deliveries in the country totaled 8.3 million units, up 36.7% year-on-year, it said. NEVs accounted for 30.8% of vehicle sales during the same period, indicating that Chinese car buyers are more inclined toward emission-free mobility. The figure is expected to rise to 40% this year, according to the China Passenger Car Association (CPCA). The NEV sales boom has prompted many technology companies to make forays into automobile manufacturing. Huawei said that orders for its Aito M9, a SUV codeveloped with Chinese carmaker Seres, surpassed 30,000 in the seven days since its launch. The model’s mass deliveries are set to begin in February. Chinese smartphone maker Xiaomi unveiled its first vehicle in late December, a sedan with dimensions similar to BMW’s 5 Series. Xiaomi said the model, which is expected to hit the market early this year, outperforms Porsche’s electric vehicle Taycan and Tesla’s Model S in aspects such as acceleration and mileage on one charge.
Grace Tao, Vice President of Tesla, said that almost 100% of its Shanghai plant’s workforce are Chinese, and 95% of components are locally purchased. Tesla’s Shanghai plant produced around 600,000 Model 3s and Model Ys last year for the Chinese market, accounting for roughly one-third of its total global deliveries. Volkswagen has built a state-of- the-art hub that involves electric vehicle development and production in Hefei, Anhui province. It has also partnered with Chinese technology companies, including Horizon Robotics, to develop autonomous driving solutions and smart cabin functions for its models to be sold in China. In late December, the German carmaker started to ship electric vehicles made in Hefei back to Europe, which is one of the major destinations for China’s vehicle exports. Statistics from the automobile manufacturers’ association show that 1.09 million China-made NEVs were exported in the first 11 months of 2023, up 83.5% year-on-year. The number drove China’s total vehicle exports to 4.41 million units in the same period, catapulting the nation to the top rank globally.
Meanwhile, Tesla has secured a site in Shanghai's Lingang free-trade zone (FTZ) to build its Megapack energy-storage battery plant, where it plans to produce 10,000 massive batteries a year. Each Megapack battery can store enough energy to power 3,600 homes for one hour. The Shanghai factory will churn out batteries with a total energy storage capacity of 40 gigawatt-hours (GWh) a year.
Chinese automaker JAC delivered the first batch of electric vehicles powered by sodium ion batteries in Anqing, Anhui province. The batteries of the five-seater vehicles, called Huaxianzi (flower fairy), were developed by HiNa Battery, a company affiliated with the Institute of Physics of the Chinese Academy of Sciences (CAS). The 10 vehicles in the first batch were purchased by the local government. “Sodium ion batteries have substantial cost, safety and sustainability advantages over conventional lithium-ion batteries,” said Li Shujun, General Manager of HiNa Battery. He said the energy density of the delivered cars’ batteries is 140 to 160 watt hours per kilogram and will increase to 160 to 180 watt hours per kg in two years with innovations and breakthroughs in battery design and materials science. “The delivery marks a global milestone in the industrialization of sodium ion batteries,” said Xia Shunli, Deputy Chief Engineer of JAC Group, at the delivery ceremony.
Meanwhile, the Flemish transport company De Lijn has placed an order of 92 electric buses from BYD. Worldwide, BYD has already sold more than 100,000 e-buses, including 4,200 delivered or on order in Europe, the Flemish newspaper De Standaard adds. BYD plans to manufacture the buses destined for De Lijn in Hungary. BYD also announced it will build a manufacturing plant for new energy vehicle (NEVs) in Szeged, Hungary. BYD's presence in the country dates back to 2005, involving various businesses, including a bus factory established in 2017 and a battery manufacturing base in June 2023. Its second official retail site in Budapest entered commercial services in October 2023.
This overview is based on reports by the Global Times, the China Daily and the South China Morning Post.
