While Volkswagen and Ford are grappling with losses from their electric cars, BYD is experiencing a surge in profits. In Q3 2023, BYD achieved a record-breaking profit of 1.33 billion euros, positioning itself as a top contender to surpass Tesla as the best-selling electric car brand.
BYD is currently trailing Tesla by only a few thousand cars, despite Tesla’s existing dominance as the best-selling EV brand. BYD’s sales have been consistently increasing throughout the year, with a remarkable 151,193 fully electric cars sold in September alone. In Q3, BYD sold a total of 431,603 electric cars, bringing it within striking distance of Tesla with just a manageable backlog of 3456 cars.
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Price War with Tesla
Considering the ongoing price war between Tesla and BYD, particularly in China, BYD’s record profit becomes even more impressive. Both brands have repeatedly slashed prices throughout 2023, prompting other manufacturers like Ford, Hyundai, Volkswagen, and Renault to follow suit. Nevertheless, BYD’s accountants are smiling as profits surged by 82% compared to 2022.
BYD is rapidly expanding its presence worldwide. After its launch in the Netherlands in late 2022, BYD has now established operations in major European countries, including Hungary in October. While BYDs are available for purchase in Thailand, Brazil, Australia, and India, the United States market is yet to be penetrated. In the Netherlands, customers can choose from five models, such as the Atto 3 and the Dolphin WORLD (price: €29,900).
BYD Batteries Power Other Electric Cars
Even if you do not own a BYD car, there is still a good chance that its technology is integrated into your electric vehicle. BYD manufactures its own batteries, which are sought after by numerous car manufacturers. Notably, the Tesla Model Ys manufactured in Berlin utilize BYD batteries, and even Toyota and Kia have become BYD battery customers. This vertical integration grants BYD a significant advantage over other car brands, as almost every part of their cars is produced in-house. Only tires and windows are sourced from external suppliers for models like the Dolphin, which was recently introduced in the Netherlands.
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Contrasting Approaches: Volkswagen, Toyota, and BYD
Traditional car brands are encountering significant challenges with their electric car offerings. For instance, Toyota consistently emphasizes the importance of hybrid technology and questions the sole reliance on fully electric vehicles in achieving carbon neutrality. However, skepticism arises as it seems more like a reactionary response due to their lagging position in the EV market. The struggles faced by the Volkswagen Group in the electric car segment also raise concerns, with frequent reports of potential mass layoffs and model delays.
As we enter the fourth quarter of 2023, all eyes are on BYD. Can BYD surpass Tesla as the leading EV producer by the end of this year? They are certainly on the right track…