The Chinese company BiViDi (BYD) has for the first time surpassed the largest American concern Tesla in the number of electric cars sold, the German business publication Handelsblatt reported.
In the fourth quarter of 2023, the Chinese manufacturer sold 526,409 cars, while the company’s key competitor from the Middle Kingdom, Elon Musk’s brainchild, Tesla, sold 484,507 electric cars.
As the media note, in the last quarter of the past year, Tesla sold 11% more electric vehicles than in the same period in 2022, thereby setting a new record for sales volumes of its own products. However, this volume was not enough to surpass the Chinese competitor, which is rapidly strengthening its position in the domestic and international markets.
At the end of 2023, Tesla delivered a total of 1.8 million vehicles, BiViDi – 1.6 million vehicles equipped with an electric motor.
According to analysts interviewed by the media, Tesla will likely be forced to continue cutting prices on its own models in 2024 to maintain demand as tax breaks under the Inflation Relief Act expire.
“The American concern may be forced to lower prices further, especially on models like the Model 3, which are no longer covered by government subsidies,” said Morningstar investment analyst Seth Goldstein.
At the same time, as experts note, during 2023 the BiViDi company adhered to a similar strategy, systematically reducing prices for the model range of electric cars. As a result, the Chinese manufacturer managed to increase sales by 62% in volume terms compared to 2022.
“Increased competition will impact profits for both companies, but BBC clearly believes it is worth paying a price to increase its market share and gain recognition,” said Suzanne Streeter, an analyst at Hargreaves Lansdowne.
In September 2023, the President of the European Commission (EC) Ursula von der Leyen criticized the subsidies provided by the Chinese government for electric vehicle manufacturers. According to her, prices for Chinese electric cars are “artificially low,” which leads to “market disruption.” According to an EC report, electric cars produced in China are on average 20% cheaper than models produced in the EU.
2024-01-05 12:06:00
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