BYD started the final quarter of the year with record monthly sales, continuing its strong performance in what is typically a peak season for car purchases in China.
The manufacturer’s global passenger car sales jumped 66% to a record 500,526 units in October, the company reported on Friday (1st). Although BYD reached the half-million-unit mark earlier than expected, Western manufacturers including Volkswagen AG are struggling in the world’s biggest car market.
Demand for BYD’s plug-in hybrids was the strongest, reaching 310,912 deliveries, with the remainder all-electric models. Some of the company’s newer hybrids come with upgraded powertrains that allow for more than 2,000 kilometers (1,243 miles) of range.
Volkswagen, Mercedes-Benz and Stellantis are among the traditional automakers struggling in China. The country has been a major profit driver for Western brands who are now witnessing a shift in sales from combustion engine cars to domestic electric models. BYD reached the half-million mark a month earlier than Citibank analyst Jeff Chung predicted.
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BYD’s stunning rise is fueling fears that China is poised to dominate the global auto market at the expense of American and European rivals. Earlier this week, the European Union imposed higher tariffs on electric vehicles in the Asian market, increasing trade tensions.
Whether BYD can turn its domestic dominance into significant market share gains abroad remains to be seen. Its overseas sales in October stagnated at around 31,200 units – despite a marketing push over the summer in regions such as Europe, where it sponsored the European Championship football tournament.
BYD wasn’t the only one to hit monthly records. Geely Automobile did so too, selling 226,686 vehicles in October, a 28% increase from the previous year. And small Chinese automaker Xpeng also reached a new record with 23,917 deliveries.
Li Auto, whose Hong Kong-listed shares fell nearly 10% on Friday after softer guidance for the fourth quarter, sold 51,443 units, still up 27% but not hitting a monthly record. Nio’s sales fell from the previous month.
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Shenzhen-based BYD reached another milestone last month when it reported third-quarter revenue that surpassed Tesla.
The automaker’s revenue rose 24% to 201.1 billion yuan ($28.3 billion) in the three months ending in September, missing estimates but surpassing Tesla’s $25.2 billion in sales in the same period. .
The last three months of each year are generally peak shopping season in China, and sales of electric and hybrid vehicles are boosted by expanding national and local subsidies that encourage consumers to trade in their old cars.
BYD is also on track to meet its revised annual sales target of 4 million vehicles, having sold 3.24 million passenger cars through October.
