China’s EV leader BYD posts record sales in 2024

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China’s best-selling car manufacturer BYD sold a record number of electric vehicles and hybrids globally last year, even as fierce competition took hold in its home market.

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

BYD sold more than 1.76mn pure EVs last year, narrowing the gap with Tesla in the race to be the world’s biggest-selling EV company in 2024. Tesla’s fourth-quarter sales figures, due later on Thursday, would have to reach 515,000 for it to meet its 2024 target of 1.81mn 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-powered cars and plug-in hybrids, than vehicles with internal combustion engines for the first time in 2025, as a result of hundreds of billions of dollars in government subsidies over the past decade.

Carmakers have also been helped by a trade-in scheme launched last April that allowed consumers to receive Rmb20,000 ($2,740) for replacing an old gas-powered car with an EV.

But while some of the bigger names performed well, intense competition and a prolonged price war have put scores of players under pressure. Dozens of companies such as Xpeng and Nio fell short of their sales targets, even as they recorded growth.

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

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

“The economies of scale matter more than ever to carmakers as the industry transitions to EVs,” added Zhang.

Analysts also pointed out that the entrance of tech groups such as Xiaomi and Huawei had deepened competition.

As of December 31, Xiaomi sold more than 135,000 units of its only model, the SU7 sedan, launched in late March, surpassing its goal of 130,000 cars. Founder Lei Jun said on Wednesday the group aimed to more than double that in 2025 by delivering 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 China Automobile Dealers Association expert committee.

“Xiaomi’s SU7 sedan made a splash by capturing consumers’ demands for a personalised [car] with an attractive price tag.”

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