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China's BYD closes in on Tesla as sales jump Tesla sales stall as China's BYD closes in
(about 13 hours later)
The Chinese EV maker saw record sales in DecemberThe Chinese EV maker saw record sales in December
Chinese car maker BYD saw its sales jump at the end of last year, as it competes with Tesla to be the world's best-selling electric vehicle (EV) maker of 2024. Tesla sales fell last year for the first time in more than a decade, as demand faltered and rivals gained pace.
The company says it sold 207,734 EVs in December, taking its annual total to 1.76 million, as subsidies and discounts helped attract customers. The company, led by billionaire Elon Musk, delivered almost 1.79 million cars last year, down about 1% from 1.8 million in 2023.
It comes as Tesla is due to announce its own quarterly sales figures later on Thursday. This comes despite the company lowering prices repeatedly last year in a bid to woo buyers and hold on to its rank as the world's top-selling maker of electric vehicles (EVs).
The US electric car maker maintained a slim lead in EV sales over BYD in the previous quarter but the Shenzhen-based firm has been narrowing the gap. China's BYD, however, looks set to close the gap after reporting 1.76 million EV sales in 2024.
BYD's total vehicle sales jumped more than 41% in 2024, year-on-year. The surge was powered mainly by sales of its hybrid cars. The Shenzen firm's total vehicle sales jumped more than 41% in 2024, year-on-year, to more than 4.2 million.
The company has benefited from a rise in car sales in its home market, as intense competition drove down prices and government subsidies encouraged consumers to replace their old cars with EVs or other more fuel efficient options. The surge was powered mainly by sales of its hybrid cars.
BYD sells 90% of its cars in China, where its been extending its lead over foreign brands like Volkswagen and Toyota. BYD sells 90% of its cars in China, where it has been extending its lead over foreign brands including Volkswagen and Toyota.
The rise of BYD and other Chinese EV makers contrasts with the challenges faced by some legacy car makers, which have been struggling in major Western markets. It has benefited from a rise in car sales in its home market, as intense competition drove down prices and government subsidies encouraged consumers to replace their old cars with EVs or other more fuel efficient options.
Tesla also counts China as a key market, but it has lost ground to rivals as the price war rumbles on.
Demand for electric vehicles has also softened in other regions, such as the US and Europe, creating challenges for many carmakers.
Volkswagen, Ford and General Motors were among the companies that cut sales targets or decided to delay investments in EV technology last year.
At Tesla, its boss Elon Musk has blamed weaker sales in part on the jump in borrowing costs since 2022, which has made it more expensive to buy.
Analysts have also pointed to increased competition and questions about the brand, as Musk deepens his political involvement, which has been described as controversial.
Tesla sales slumped in the first half of 2024 before starting to pick up again. In the final three months of 2024, it delivered about 495,000 cars, up 2% year-on-year and a quarterly record.
But the firm's share price, which surged more than 60% last year, fell 5% in morning trade, as the figure came in below the roughly 500,000 forecast by analysts.
"If you don't meet expectations, it can be pretty tough out there," said Christopher Carey of the Carnegie Investment Council.
Last month, Honda and Nissan confirmed that they were holding merger talks, as the two Japanese firms seek to fight back against competition from the Chinese car industry.Last month, Honda and Nissan confirmed that they were holding merger talks, as the two Japanese firms seek to fight back against competition from the Chinese car industry.
Also in December, Volkswagen announced it had reached a deal with the IG Metall trade union which will avert plant closures in Germany and avoid immediate compulsory redundancies.
The German motor industry giant had previously warned it might have to shutter plants in the country for the first time in a bid to cut costs.
Earlier in the month, the boss of car making giant Stellantis, Carlos Tavares, quit with immediate effect following a boardroom clash.Earlier in the month, the boss of car making giant Stellantis, Carlos Tavares, quit with immediate effect following a boardroom clash.
His abrupt exit from the company - which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler - came two months after Stellantis issued a profit warning.His abrupt exit from the company - which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler - came two months after Stellantis issued a profit warning.
In the third quarter of 2024, BYD saw its revenues soar, beating Tesla's for the first time. Some governments have stepped in to protect domestic companies.
It posted more than 200bn yuan ($28.2bn, £21.8bn) in revenues between July and September - a 24% jump from the same period last year, and more than Elon Musk's company whose quarterly revenue was $25.2bn. In October, European Union tariffs of up to 45.3% on imports of Chinese-made EVs came into force across the trade bloc.
However, Tesla still sold more electric vehicle (EVs) than BYD.
Chinese car makers have been trying to boost sales of their EVs outside the country but have faced pushback in some major markets.
In October, European Union tariffs of up to 45.3% on imports of Chinese-made EVs came into force across the bloc.
The US has also imposed a 100% duty on EVs from China and President-elect Donald Trump is expected to impose further tariffs on imports.The US has also imposed a 100% duty on EVs from China and President-elect Donald Trump is expected to impose further tariffs on imports.
Meanwhile, BYD has been expanding its foothold in emerging economies. BYD has still been expanding its foothold in emerging economies.
Last month, it faced a setback in Brazil - its largest overseas market - with authorities halting the construction of a BYD factory, saying workers lived in conditions comparable to "slavery". But last month, it faced a setback in Brazil - its largest overseas market - with authorities halting the construction of a BYD factory, saying workers lived in conditions comparable to "slavery".
BYD said it had cut ties with the construction firm involved and remained committed to a "full compliance with Brazilian legislation".BYD said it had cut ties with the construction firm involved and remained committed to a "full compliance with Brazilian legislation".