China’s BYD is selling more electric cars than Tesla

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The Chinese company sold a record number of cars last year, including 525,409 battery electric vehicles (BEVs) in the three-month period to December 31, according to a stock exchange filing. Tesla said Tuesday it delivered 484,507 — also a record — during the quarter.

Over the year as a whole Elon Musk’s Tesla (TSLA) still outpaced BYD, selling 1.8 million electric cars. BYD sold 1.57 million electric vehicles, up 73% on 2022, as well as 1.44 million hybrids.

But that means Tesla’s gap over its Chinese rival, at about 230,000 units in 2023, was significantly narrower than the 400,000 units posted in 2022.

The rapid growth of BYD, which is backed by Warren Buffett, is a symbol of China’s rising EV industry.

China is progressing quickly in its transition to electric vehicles, thanks to strong government support for the industry. And its carmakers have been pushing into Europe to the alarm of traditional rivals such as Volkswagen and Renault. EU policymakers have launched an investigation into Chinese state subsidies.

Beijing has set a target that at least 20% of new cars sold annually in China by 2025 should be new energy vehicles (NEVs), which include BEVs, plug-in hybrids and hydrogen fuel cell vehicles. By 2035, the government says, NEVs should become the “mainstream” of new car sales.

The first goal was achieved in 2022, about three years early. The second may also be reached earlier than expected.

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