China’s BYD Outpaces Tesla in Revenue as EV Market Heats Up
Chinese electric vehicle (EV) giant BYD has reported record-breaking revenues, surpassing Tesla’s for the first time. In the third quarter, BYD posted over 200 billion yuan ($28.2bn, £21.8bn) in revenue, marking a 24% increase from the previous year. This tops Tesla’s $25.2bn in quarterly revenue, although Tesla still sold more EVs than BYD during the same period.
China’s government subsidies, aimed at encouraging consumers to switch from petrol-powered cars to EVs and hybrids, have given a significant boost to domestic EV sales. BYD set a new monthly sales record in September, underscoring its momentum as China’s top car manufacturer.
However, international backlash against China’s support for its car industry is growing. Earlier this week, the European Union introduced tariffs of up to 45.3% on Chinese-made EV imports, adding to the existing 100% tariffs imposed by the U.S. and Canada. These actions respond to concerns over alleged unfair subsidies by the Chinese government for domestic automakers like BYD. In China, demand for EVs remains strong. Over 1.57 million applications have been submitted for a national subsidy of $2,800 per older vehicle traded in for a greener option. This incentive is just one among many as China pushes high-tech sectors like EVs to reinvigorate its slowing economy. With the EU as the largest international market for Chinese EVs, European regulators worry that local companies may struggle to compete with the lower-cost imports from China’s rapidly expanding car industry.
