BYD to outsell Ford, Honda, beat 2024 sales goals heartily as Tesla continues to struggle in China

China’s top electric vehicle (EV) maker BYD is poised to overtake global giants Ford and Honda in 2024, exceeding its ambitious annual sales target. Benefiting from surging demand in China, the world’s largest car market, BYD is cementing its dominance with a rapid expansion strategy and competitive pricing.  

By the end of November, BYD had already delivered 3.76 million vehicles, including over 500,000 units in November alone, putting it on track to surpass its 4 million sales goal for the year.

Riding China’s auto boom

China’s car market experienced its fastest growth in 2024 during November, fuelled by government-subsidised auto trade-ins that supported over 4 million transactions. This policy helped BYD secure a 17.1 per cent share of the Chinese market, a leap from 12.5 per cent in 2023. The company’s cutting-edge plug-in hybrid models have been key in winning over consumers, boosting BYD’s sales momentum while competitors like Volkswagen saw market share shrink.

The robust performance in China—where over 90 per cent of BYD’s sales occur—places the company ahead of Honda and Ford in global rankings for 2024. Analysts predict BYD could sell as many as 6 million vehicles in the next 12 months, rivalling global leaders like General Motors and Stellantis.

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Massive expansion to meet demand

BYD’s explosive growth in 2024 stems from its aggressive scaling efforts. Between August and October, the EV maker increased its production capacity by 200,000 units and hired an additional 200,000 workers. The company’s workforce has ballooned to nearly 1 million employees, up from 703,500 at the end of 2023.

These moves have enabled BYD to control costs effectively, helping it navigate a brutal price war in China’s auto market that has squeezed foreign automakers. BYD has even asked suppliers for price reductions, further solidifying its competitive edge.

Foreign automakers struggle in BYD’s wake

BYD’s rise underscores the challenges faced by traditional automakers in China. Volkswagen’s market share declined, while General Motors announced over $5 billion in charges due to declining sales and restructuring of its Chinese operations. The EV price war, combined with BYD’s cost-efficient scaling and strong market position, has left many foreign brands struggling to compete.

As BYD continues its upward trajectory, it has set sights on delivering 5 to 6 million cars by 2025. With its expanding capacity and dominance in China, the company is reshaping the global auto industry landscape, one electric vehicle at a time.