BYD overtakes Volkswagen: The race for electric cars begins!

BYD overtakes Volkswagen: The race for electric cars begins!

BYD, the Chinese car manufacturer headquartered in Shenzhen, increased its profit to an impressive 40.3 billion yuan (around 5.1 billion euros) in 2024. This corresponds to a whopping increase of around 33% compared to the previous year. At the same time, sales rose by 29% to 777 billion yuan (approx. 99 billion euros), which significantly exceeded analysts' expectations. BYD's success is also reflected in the sales figures: a total of 4.25 million vehicles were sold, including 1.76 million purely electric cars. This statistic shows that BYD is on track to achieve its ambitious sales targets for 2025, which are between five and six million vehicles.

A key success factor for BYD is its strategy of offering affordable models. This tactic is said to be of great use to the company in the current price war on the Chinese market. In an environment in which traditional German car manufacturers are coming under increasing pressure - their profits from combustion vehicles are shrinking - BYD has established itself as a market leader in the rapidly developing electric car sector in China. In 2023, BYD overtook the Volkswagen Group and secured market leadership in China.

Competition in the electric car market

BYD has also made remarkable progress in a global comparison. Last year, the company overtook Tesla in terms of sales in the electric vehicle sector. Nevertheless, Tesla still had a lead in the total number of purely electric cars sold in 2024 with 1.79 million electric vehicles sold. However, in the first few months of the current year, Tesla's sales fell, particularly in the important Chinese market and partly in Europe.

BYD's aggressive expansion and pricing policies, combined with the continuous demand for electric vehicles, enable the company to effectively address the challenges encountered in the automotive industry. Competition is expected to continue to increase, especially as BYD's focus on low-cost electric vehicles provides a clear answer to the industry's challenges.

Overall, BYD is positioning itself as a leading player in the emerging electric car market not only in China but also internationally. The company's development is being closely monitored as it could provide important impetus for the future of the automotive industry. [oekonews] reports that the coming years will be crucial for the positioning of BYD and other manufacturers in the global automotive industry.

Find out more about BYD's expansion and strategies and how the company is expanding the global market for electric cars in an article from [manager magazin].