Chinese firm BYD nears overtaking Tesla as world's leading electric vehicle manufacturer

Chinese company BYD is poised to dethrone Tesla as the world's top-selling electric vehicle (EV) manufacturer, reporting stellar fourth-quarter sales, according to Financial Times report.BYD's record 526,000 battery-only vehicles sold in the quarter, especially a December surge, present a formidable challenge to Tesla's supremacy.

BYD's milestone quarter

BYD, emblematic of China's prowess in clean technology, achieved a historic milestone by selling 526,000 battery-only vehicles in Q4, marking a more than 70 per centincrease in December sales. The surge positions BYD as a formidable contender to overtake Tesla as the leading EV manufacturer.

Tesla must surpass analyst expectations and deliver a robust fourth quarter to maintain its status as the largest seller of pure electric vehicles. Estimates project Tesla's Q4 sales around 483,000 vehicles, with official production figures awaited on Tuesday (Jan 2).

At the end of Q3, BYD and Tesla each held a 17 per cent global market share for fully electric cars. While BYD outpaced Tesla in Q2 by including plug-in hybrid vehicles in the "new energy vehicles" category, it now presents a significant challenge to Tesla in the pure electric vehicle segment.

BYD has secured a 35 per cent market share in China's "new energy vehicles" segment, primarily on home turf. Despite expanding into international markets, the group's stronghold in China remains a key driver of its success.

Founded in the mid-1990s by Wang Chuanfu, BYD initially focused on rechargeable batteries before venturing into the automotive industry. With Warren Buffett's Berkshire Hathaway as a shareholder, BYD has evolved into a leader in EV technology, emphasising cost-efficiency and vertical integration.

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As BYD and Tesla engage in fierce competition, the broader industry shift towards cleaner vehicles has adversely affected traditional automakers slow to adapt. BYD's emphasis on innovation and cost-effective production processes positions it as a significant player in the evolving automotive landscape.

(With inputs from agencies)