BYD, China’s electric vehicle leader has made record sales in 2024

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China’s best-selling carmaker, BYD, sold a record number of electric and hybrid vehicles worldwide last year, even as fierce competition gripped its home market.

Tesla’s biggest rival sold 4.3 million EVs and hybrids in 2024, far exceeding the 3.6 million target set earlier, according to a company statement. “The champion of China, the champion of the world,” the company said in a social media post late Wednesday.

BYD sold more than 1.76 million pure EVs last year, narrowing the gap with Tesla in the race to be the world’s best-selling EV company in 2024. Tesla’s fourth-quarter sales figures, due after Thursday, they should reach 515,000 for it. to meet its 2024 target of 1.81 million EVs sold.

Li Auto, China’s first profitable EV start-up, Stellantis-backed Leapmotor and smartphone maker Xiaomi also surpassed their targets, selling 500,000, 290,000 and 135,000 EVs respectively during 2024.

China is expected to sell more EVs, including pure battery cars and plug-in hybrids, than vehicles with internal combustion engines for the first time in 2025, thanks to hundreds of billions of dollars in government subsidies in last decade

Automakers were also helped by an exchange scheme launched last April that allowed consumers to receive 20,000 Rmb ($2,740) for replacing an old gas-powered car with an EV.

But while some of the bigger names have done well, intense competition and a prolonged price war have put dozens of players under pressure. Dozens of companies like Xpeng and Nio failed to reach their sales targets, even as they recorded growth.

“Competition in the market is very fierce,” said Yale Zhang, managing director of Shanghai-based consultancy Automotive Foresight. “The biggest companies are taking an ever-larger piece of the pie, while most of the smaller groups are struggling.”

The consolidation has already reshaped the world’s largest EV market. Once high-flying start-ups like Baidu-backed HiPhi and Jidu have collapsed over the past year. Auto conglomerate Geely combined its Zeekr and Lynk & Co sub-brands in November to “streamline operations”.

“Economics of scale matter more than ever to automakers as the industry shifts to EVs,” Zhang added.

Analysts have also pointed out that the entry of technology groups such as Xiaomi and Huawei have deepened the competition.

As of December 31, Xiaomi has sold more than 135,000 units of its only model, the sedan SU7, launched at the end of March, surpassing its target of 130,000 cars. Founder Lei Jun said on Wednesday that the group aimed to more than double that by 2025 by supplying 300,000 EVs.

“The country’s EV market is huge, so even a niche segment could see considerable demand,” said Li Yanwei, a member of the expert committee of the China Automobile Dealers Association.

“Xiaomi’s SU7 sedan has made a splash by capturing consumer demands for a customized (car) with an attractive price.”

President Xi Jinping acknowledged the industry’s success in his New Year’s address. “(China’s) annual production volume of new energy vehicles has exceeded 10 million units for the first time,” Xi said in a televised speech on Tuesday.