BYD, China’s leading electric vehicle (EV) manufacturer, has achieved a major milestone, setting a new monthly sales record for new energy vehicles (NEVs).
This surge in sales comes on the heels of significant price reductions across some of its top-selling models, as the company intensifies its competition with global EV giant Tesla. It also comes as New Zealand new vehicle sales have tumbled for the fourth consecutive month in June.
Record-breaking sales
In June, BYD sold an unprecedented 341,658 NEVs, marking its highest monthly total to date.
This figure represents a 35% increase compared to the same period last year and surpasses the previous record of 341,043 units sold in December 2023.
Among these, 145,179 were all-electric vehicles, a 13% increase from the 128,196 sold last June. Despite this growth, the number of all-electric cars sold fell short of May's total of 146,395 units.
For the first half of 2024, BYD's all-electric vehicle sales reached 726,153 units, an 18% rise from the 616,810 units sold during the same period in 2023.
Plug-in hybrid vehicle (PHEV) sales also saw significant growth, with 195,032 units sold in June, a 58% year-on-year increase. This marks the fourth consecutive month BYD has set a new record for PHEV sales.
Strategic price cuts
BYD’s recent sales boost can be attributed to strategic price cuts initiated earlier this year. Labelled as a “liberation battle”, these price reductions aim to undercut foreign gas-powered cars.
The Seagull (or Dolphin Mini), BYD’s most affordable EV, is now priced at just ¥69,800 (around NZ$15,800) in China, while overseas it starts at around NZ$30k. Other popular models, such as the Atto 3, Dolphin and Seal, have also seen price reductions, making them more accessible to a broader market.
In addition to its success in China, BYD is aggressively expanding into international markets. The company sold 26,995 vehicles overseas last month, with new models being introduced in countries like Japan and South Korea.
While BYD is renowned for its affordable EVs, it is diversifying its product lineup to include luxury vehicles, mid-size SUVs, utes and even supercars.
In New Zealand, BYD recently showcased a duo of new plug-in hybrids in the Shark ute and Sealion 6 SUV.
Can BYD topple Tesla?
As BYD continues to set sales records and expand its global footprint, the question remains whether these efforts will be sufficient to surpass Tesla in the highly competitive EV market.
With its aggressive pricing strategy and diverse vehicle lineup, BYD is well-positioned to challenge Tesla’s dominance. However, sustained growth and innovation will be crucial in maintaining this momentum and achieving long-term success.