BYD Rises Above Honda And Nissan As World’s 7th-Largest Automaker By EV Sales

BYD has emerged as the world’s seventh-largest automaker by its electric vehicle (EV) sales volume in Q2 2024, surpassing Honda and Nissan for the first time as it signals the rapid ascent of Chinese EVs in the global market.

According to data from automakers and research company MarkLines as cited by Nikkei Asia, BYD’s new vehicle sales soared by 40% year-on-year to 980,000 units between April and June. This growth was primarily driven by strong demand for BYD’s affordable EVs, both domestically and internationally.

BYD’s success is particularly notable given that many global automakers including Toyota and Volkswagen, experienced sales declines during the same period. As a result, the company’s rise from 10th place globally in Q2 2023 to 7th place this year highlights the accelerating shift towards electrification in the automotive industry.

Increasing International Presence

A key factor in BYD’s surge has been its expanding international presence. Overseas sales nearly tripled compared to the previous year, reaching 105,000 units. The company has made major inroads in markets such as Mexico, Brazil, Japan, Europe, Thailand, and other Southeast Asian countries.

BYD’s growth trajectory puts it on a collision course with major U.S. automakers. The company is now closing in on Ford, which reported wholesales of 1.14 million vehicles in Q2. As BYD continues to expand its global manufacturing footprint with new plants in Hungary, Brazil, Turkey, Mexico, and Pakistan, it poses an increasing challenge to established automotive giants.

Tariffs On Chinese EVs

The success of BYD and other Chinese automakers including Geely and Chery Automobile, both of which ranked in the top 20 in global sales, is also making progress in the global automotive landscape. However, these companies face challenges from tariffs in the U.S. and Europe.

The U.S. has increased tariffs on Chinese EVs to 100% and Europe with up to 36.3%. As for BYD, it only an additional tariff rate of 17%. Despite these obstacles, Chinese automakers are still focusing on the European market in terms of sales and expansion.

Read More: EU Revises Tariffs on Chinese EVs With Tesla’s Rate Slashed To 9%

With Toyota remaining the only Japanese automaker ahead of BYD in global sales rankings, the automotive landscape is witnessing a dramatic realignment. As BYD’s rise serves as a clear indicator of the changing dynamics in the global EV industry, Chinese automakers will continue to increasingly set the pace in the local EV market.

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