China's BYD overtakes Tesla in sales of electric cars

BYD has overtaken Tesla to become the number one electric car market in the world in the last quarter of 2023.

The Chinese company sold a record number of cars last year, including 525,409 battery electric vehicles (BEVs) in the last three months of 2023. Tesla announced on Tuesday that it delivered 484,507 vehicles in the same quarter, which is also a record number for them.

Elon Musk's Tesla ( TSLA ) is still ahead of the Chinese giant with sales of 1.8 million electric cars over the past year. BYD sold 1.57 million electric vehicles, which is 73 % more than in 2022. It is also worth noting that they also sold 1.44 million hybrids.

Warren Buffett-backed BYD's rapid growth is emblematic of China's burgeoning electric vehicle industry.

China is making rapid progress in the transition to electric vehicles thanks to strong government support for the industry. The local car manufacturers are also gaining ground in Europe, which upsets traditional rivals such as Volkswagen and Renault. EU regulators have already started an investigation into Chinese state subsidies.

Beijing has set a target of at least 20 % new energy vehicles (NEVs) to be sold annually in China by 2025, which include BEVs, plug-in hybrids and hydrogen fuel cell vehicles. By 2035, according to the government, NEVs are expected to become the first choice of new car buyers.

The first target was reached in 2022, about three years ahead of schedule. The second goal might also be achieved earlier than predicted.