For the first time in the second quarter, China’s leading electric vehicle manufacturer, BYD, outsold Honda and Nissan, purchasing more cars than both Japanese automakers combined. With its rapid expansion, BYD has solidified its position as the globe’s seventh-largest automobile manufacturer. As affordable electric vehicles (EVs) gain traction in major global markets, BYD is quickly gaining ground on Ford.
Reasonably priced EVs driving demand
Between April and June, BYD’s new car gross sales surged by 40%, reaching 980,000 units. For the first time, the expansion enabled Japanese manufacturers Honda and Nissan to surpass their long-standing rivals and secure a spot as the world’s seventh-largest automaker.
A significant portion of BYD’s surging gross sales figures is due to its exceptionally affordable electric vehicles. As BYD cuts expenses while introducing affordable electric vehicle models.
The Seagull, touted as the most cost-effective electric vehicle (EV), starts at a remarkably affordable price of just $9,700 (approximately 69,800 yuan) in China. Meanwhile, BYD’s impressive performance this year can largely be attributed to surging overseas sales.
China-based BYD acquired approximately 105,000 vehicles outside of the country, nearly tripling its previous year’s total. Following successful launches in key markets such as Mexico, Brazil, Japan, Europe, Thailand, and various Southeast Asian countries, BYD has emerged as the leading electric vehicle (EV) brand.
Despite a decline in quarterly sales for major automakers such as Volkswagen and Toyota, BYD’s popularity persisted.
In a surprising turn of events, Toyota emerged as the sole Japanese automaker to outpace BYD in terms of automotive sales for the second quarter, marking a significant departure from past trends.
Will BYD surpass Ford’s car sales?
As BYD’s global footprint expands, its ascendance is a harbinger of the automotive industry’s seismic shift towards electrification. As China leads the charge in transitioning to a low-carbon economy, numerous countries are setting ambitious electric vehicle (EV) targets to pave the way for a cleaner and more sustainable tomorrow.
While BYD’s gross sales surged 35% in China during June, Honda and many overseas competitors experienced double-digit declines. The issue isn’t limited to China alone. Honda plans to significantly reduce its presence in Thailand, where BYD has already established itself as the market leader.
As BYD considers expanding its global manufacturing presence, it may establish multiple international facilities to drive growth and diversify production.
The coffee chain recently launched its initial location in Thailand, with plans to introduce local flavors from Hungary, Brazil, Turkey, Mexico, and Pakistan in the coming months.
As BYD surges ahead of Honda and Nissan in the second quarter, it’s now hot on the heels of legacy auto powerhouses, including Ford and the US “Big Three.”
Ford’s wholesale sales rose to 1.14 million units during the second quarter, marking a modest increase over the 1.12 million recorded in Q2 2023.
The US automaker pushed back its timeline for introducing several new electric vehicles and delayed its next-generation electric pickup to the second half of 2027, a two-year setback from initial expectations.
Ford’s decision to scrap plans for a three-row electric SUV has created an opportunity for competitors such as Kia and Volvo to fill the void, as the company shifts its focus towards hybrid vehicles. The corporation has announced that it will provide an additional comprehensive replacement for its EV technology next year.
Meanwhile, BYD aims to expand its presence in North America by targeting Ford’s stronghold in Canada with a focus on promoting its automotive products. The company is nearing completion of a new manufacturing facility in Mexico, which is expected to produce approximately 150,000 vehicles in its initial phase.
According to BYD’s Mexico chief, the company is expected to manufacture between 400,000 and 500,000 vehicles at its Mexican facility.
Electrek’s Take
After lagging behind other manufacturers, Japanese automakers such as Honda and Nissan are finally gaining traction in several key markets with their electric offerings.
Despite widespread headlines proclaiming a decline in electric vehicle (EV) adoption, actual sales figures continue to rise as demand for gas-powered cars dwindles.
As traditional automakers struggle to adapt to the shift towards electric vehicles (EVs), they’re losing market share, while pioneers such as BYD and Tesla have solidified their positions as top global players in the industry?
BYD has risen to become the world’s seventh-largest automaker, a significant increase from its previous ranking of tenth last year. Can it overtake Ford?
As Ford transitions to a lineup of more affordable and compact electric vehicles (EVs), the automaker appears to be attempting to mitigate substantial financial losses. The US-based car manufacturer suffered a significant financial setback, recording a staggering loss of $2.5 billion on its electric vehicle division during the first half of 2024, following a substantial loss of $4.7 billion in 2023.
According to a recent study, BYD generates an impressive revenue of over $15,000 (approximately €14,300) per unit sold of its popular Seal model in the European Union.
Ford’s CEO Jim Farley hails BYD’s budget-friendly electric vehicles, touting the Seagull as “remarkably impressive.” Can Ford replicate BYD’s success with its own affordable EVs? Will Ford’s fate mirror that of Honda and Nissan?
Although BYD is most renowned for its affordable electric vehicles, the company is rapidly expanding its portfolio by introducing new pickup trucks, premium automobiles, and high-performance electric supercars to its offerings. Byd has introduced the Shark PHEV pickup truck in Mexico this summer, a model capable of competing with market leaders such as Ford’s Ranger and Toyota’s Hilux.
