China’s leading electric car maker BYD sold more vehicles than Honda and Nissan for the first time in the second quarter. BYD is now the seventh largest automaker in the world. By introducing low-cost electric cars in key global markets, BYD is quickly catching up with Ford.
Affordable electric vehicles drive demand
Accordingly MarkLines (above Nikkei), BYD’s new car sales rose 40% to 980,000 between April and June. The growth was enough to overtake Japanese manufacturers Honda and Nissan for the first time and become the world’s seventh-largest automaker.
A large part of BYD’s increasing sales can be attributed to its incredibly affordable electric cars. BYD continues to lower prices while also bringing out more affordable electric models.
The cheapest electric vehicle, the Seagull, is available in China starting at $9,700 (69,800 yuan), but BYD’s success this year is largely due to increasing sales abroad.
BYD sold 105,000 vehicles outside China, roughly tripling year-on-year. After launching in key markets such as Mexico, Brazil, Japan, Europe, Thailand and other Southeast Asian countries, BYD is already a leading brand in electric vehicles.
Although sales of leading automakers such as Volkswagen and Toyota declined in the second quarter, BYD continued to see increasing demand.
Toyota is the only Japanese automaker to sell more vehicles than BYD in the second quarter, a stark contrast to previous years.
Will BYD surpass Ford in vehicle sales?
BYD’s growing global presence is symbolic of the automotive industry’s shift to electric cars. Although China is leading the transition, many countries are setting ambitious electric car targets to achieve a cleaner, more sustainable future.
While BYD’s sales in China rose 35% in June, Honda and many foreign competitors saw double-digit sales declines. And not just in China. Honda plans to halve its capacity in Thailand, where BYD is already becoming the market leader.
As part of expanding its global production presence, BYD also plans to open several factories abroad.
The first plant opened last month in Thailand; plants are planned in Hungary, Brazil, Turkey, Mexico and Pakistan.
After overtaking Honda and Nissan in the second quarter, BYD is quickly catching up with other established automakers, including Ford and America’s Big Three.
Ford’s wholesale sales reached 1.14 million in the second quarter, up slightly from 1.12 million in the second quarter of 2023.
The American automaker announced several delays in the release of new electric vehicles this week, including postponing the release of its next-generation electric pickup truck to the second half of 2027, two years later than expected.
Ford has also scrapped plans for its three-row electric SUV and focused on hybrids, opening the door for rivals like Kia and Volvo to take over the segment. The company said it will release a more comprehensive update to its EV strategy next year.
BYD, meanwhile, plans to expand into Ford’s market and sell vehicles in Canada. The company also plans to build a plant in Mexico that will produce 150,000 vehicles in the first phase.
Ultimately, the plant will produce 400,000 to 500,000 cars, said BYD’s Mexico boss Reuters this week.
Electrek’s opinion
After being among the slowest to switch to electric mobility, Japanese automakers such as Honda and Nissan are now feeling the pressure in several key markets.
Despite many headlines proclaiming a “slowdown in electric vehicle production,” sales are still rising while gasoline-powered vehicles are falling out of favor.
Automakers that have failed to keep pace with this shift are losing market share, while leading electric vehicle manufacturers such as BYD and Tesla have emerged as leading global auto brands.
BYD is now the seventh-largest automaker in the world (up from 10th place last year). Can the company overtake Ford?
Ford has already announced that it will switch to smaller, more affordable electric vehicles to overcome massive losses. The American automaker lost $2.5 billion on its electric vehicles by the first half of 2024, after already losing $4.7 billion in 2023.
A recent study by Rhodium group found that BYD earns over $15,000 (€14,300) from each Seal U model sold in the EU.
Ford CEO Jim Farley has praised BYD’s affordable electric cars, calling the Seagull “pretty damn good.” Will it be able to compete with BYD? Or is Ford facing the same fate as Honda and Nissan?
Although BYD is best known for its affordable electric cars, the company is quickly expanding its lineup to include new pickup trucks, luxury vehicles and electric supercars. BYD launched the Shark PHEV pickup truck in Mexico this summer, designed to compete with the Ford Ranger and Toyota Hilux.
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