Chinese automaker BYD made headlines at the end of last year by setting a new record for electric vehicle (EV) sales, surpassing Tesla as the worldwide leader with over 526,000 units sold in the fourth quarter of 2023. However, 2024 has brought a different narrative, with BYD witnessing a more than 40% drop in sales from its previous high mark.
This decline might seem like an opportunity for Tesla, which reclaimed the EV sales crown in Q1 amid BYD’s faltering sales. However, Elon Musk’s car brand has faced challenges of its own this year. Tesla underperformed its last quarterly total by about 20%, marking an 8.5% decrease from its position at this time in 2023. This is the first time the company has seen its quarterly deliveries fall in nearly four years.
The simultaneous drop in sales for both automakers coincides with an anticipated slowdown in Chinese electric vehicle sales. EV transactions in China grew by 36% a year ago and surged even higher at 90% in 2022. However, experts are now projecting a growth rate of just 22% for this year.
China stands out as the largest market for EVs globally, currently accounting for 60% of the global electric fleet. The Chinese market was responsible for over 90% of BYD’s total sales and nearly a quarter of Tesla’s revenue last year. Consequently, if the EV slowdown persists in China, it could lead to further reduced quarterly sales totals for these automakers.
