BYD records strong growth in car sales against Tesla

BYD records strong growth in car sales against Tesla

The Chinese electric vehicle manufacturer BYD reported an impressive 60% increase in sales in the first quarter of the year, while previous market leader Tesla stumbles.

Sales figures on the upswing

The company, based in the southern Chinese megacity of Shenzhen, sold over one million new energy vehicles, including fully electric cars, hybrids and commercial vehicles, in the first three months of 2025. This comes from a calculation by CNN based on the latest one stock exchange filings. Sales of pure electric vehicles rose 39% to more than 416,000 units.

Record investments and market potential

BYD has developed a lot recently. Just last week, the company reported record sales of $107 billion last year. In comparison, Tesla's 2024 revenue was $97.7 billion, while deliveries fell 1.1% for the first time.

The vast majority of BYD's shipments last year went to domestic customers, while only 10% were exported overseas. Analysts and investors therefore see great growth potential for BYD, especially in markets such as Europe, Southeast Asia and South America.

Difficulties for Tesla in Europe

In Europe, where BYD is establishing a foothold and setting up two production facilities, Tesla is struggling with falling sales figures. In February, Tesla's sales there fell by around 40% compared to the same month in 2024, as the European Automobile Manufacturers Association reported.

Expansion and future visions

Last week, Wang Chuanfu, BYD's founder and CEO, committed to increasing total deliveries by nearly 30% this year and doubling overseas deliveries to over 800,000 vehicles, he said state media.

Innovations from BYD

In the first quarter, BYD introduced a number of eye-catching innovations. Last month the company introduced a revolutionary Charging technology one that claims to add 250 miles of range in just five minutes - that beats the Tesla Superchargers, which take 15 minutes to add 200 miles. BYD also launched in February advanced driver assistance system, which competes with Tesla's Autopilot and is offered at no extra charge on most models.

Market challenges and competition

Despite successes in China, where BYD reported a 25% increase in new energy passenger vehicle sales in the first quarter, giving it a 27% market share, the company also faces challenges. Brand recognition and trade barriers could pose hurdles to international expansion, notes Shaochen Wang, research analyst at Counterpoint Research.

A look at Tesla's home market shows that Elon Musk's controversial role in government, marked by mass layoffs in the public sector, has cooled Tesla's sales figures. While demand for used electric vehicles is increasing, prices for used Teslas are falling significantly.

Consolidation in the automotive industry

After years of fierce competition in China's automotive industry, major car brands appear to be consolidating. Dongfeng Motor and Changan Automobile, two of the country's largest automakers and joint venture partners of Ford and Nissan, are reportedly in advanced merger talks. If this merger goes through, it could create China's largest automaker and the fifth largest in the world.

Analyst Shaochen Wang commented that the Chinese automobile market is too crowded and many brands are expected to exit as research and development costs weigh on manufacturers. "The merger between Dongfeng and Changan is mainly aimed at achieving more efficient use of state assets as competition continues to increase," Wang said.

For more information, CNN has sent requests to Tesla, Changan and Dongfeng.