Chinese Automaker Threatens Tesla’s Dominance in 2023 Electric Vehicle Sales

10 automakers accounted for over 80% of global electric vehicle sales in 2023. The 3 largest automakers, Tesla, BYD, and Volkswagen Group, accounted for 46% of total sales. Tesla sold 1.8 million units, a 38% surge, and BYD sold 1.57 million units, a 73% surge, widening the gap with other automakers.

92% of BYD electric vehicles were sold in China, but its exports also surged more than three times compared to the previous year. There is interest in whether BYD, which overtook Tesla based on performance in the fourth quarter of 2023, will rise to first place in the annual performance 2024.

3rd-ranked Volkswagen Group’s market share slightly expanded from 7.2% in 2022 to 8.6% in 2023.

Expectations for global electric vehicle sales in 2024 vary, but generally, they are expected to increase by about 20% to 11 million units.

There are 4 Chinese automakers in the top 6 best-selling electric vehicles: BYD, SAIC, Geely, and GAC. That means the price war will intensify this year. For this year, reducing production costs is important. In 2024 and 2025, the difference between companies actively investing in electric vehicles and those not investing in them is expected to become clear.