30th October 2024 – (Beijing) Chinese electric vehicle (EV) manufacturer BYD has overtaken Tesla in quarterly revenue, marking a significant milestone as the company advances its expansion into international markets. This achievement highlights the intensifying competition in the global EV industry and the broader implications of trade disputes between China and Western nations.
BYD, headquartered in Shenzhen, reported a third-quarter operating revenue of 201.1 billion yuan (approximately US$28.2 billion), according to its latest filing with the Hong Kong Stock Exchange. This figure represents a 24% increase from the same period last year and exceeds the US$25.2 billion revenue posted by Tesla.
The company’s net profit also saw an uptick, reporting 11.6 billion yuan (around US$1.6 billion) for the quarter, an increase of 11.5% compared to the previous year. In contrast, Tesla, despite facing price cuts across its range, managed a third-quarter profit of US$2.2 billion, up 17% year-on-year.
The growing rivalry comes as BYD extends its reach beyond China, where it has long been the leading EV manufacturer, into new markets including Europe and Southeast Asia. However, this global push is now encountering significant challenges due to rising trade tensions. Recent measures by the European Union and the United States—imposing tariffs of up to 35.3% and 100% respectively on Chinese EV imports—reflect escalating concerns over fair competition practices.
These developments are part of a broader scrutiny of Chinese automotive firms, which have benefitted from substantial state subsidies, allowing them to offer competitive prices but prompting allegations of market distortion from international competitors.
In response to the EU’s latest tariffs, China has lodged a formal complaint with the World Trade Organization, asserting its intention to defend the interests of its domestic industries vigorously. This dispute occurs amidst a complex backdrop of international trade relations and evolving market dynamics in the automotive sector.
BYD’s strategic response has included diversifying its production bases, with new factories planned in Hungary and Turkey, as part of its broader strategy to mitigate the impact of tariffs and strengthen its global market presence.
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