BYD expects that electrified cars will soon account for about 80 percent of total new vehicle sales in China. Such an estimate comes at a time when the growth of sales of electric vehicles on the Chinese market seems slower than before, but also when the demand for gasoline cars is falling sharply due to high fuel prices.
Stella Li, executive vice president of BYD, told CNBC that the Chinese market, thanks to new technologies and a large selection of models, will very soon reach approximately 80 percent of the share of electrified vehicles. This part of the market includes fully electric cars, as well as hybrid models, which have suddenly gained importance in China in recent years.
BYD electric cars are selling better thanks to better batteries
According to the China Passenger Car Association, electric and hybrid cars have already exceeded half of new passenger vehicle sales in China in 2024, with their share reaching a record 62.9 percent last month. By comparison, the share of electric cars in the US is about 10 percent, while the global average is approximately 25 percent.
BYD’s optimism is primarily based on the domestic market and the progress of battery technology. The company claims that demand for its electric vehicles in China is currently about twice the amount it can supply. One reason is fast charging, which is said to be able to top up the battery to 70 percent in about five minutes.
At the same time, sales of gasoline cars in China fell by 39 percent in May compared to the same month last year. The CPCA association cites the rise in oil prices due to the conflict in the Middle East as one of the reasons, which further pushes customers towards electric and hybrid models.
The next phase of competition, according to BYD’s assessment, will likely be around driver assistance systems. At the end of May, the company expanded insurance for users of the L2+ assistance system, which should increase customer confidence and the frequency of using those functions. BYD has also introduced its own driver assistance chip, but will continue to largely use Nvidia solutions for now.
However, challenges remain. Although BYD stopped an eight-month streak of sales decline in May, the overall results practically remained at the level of last year. Analysts therefore believe that the key question is no longer only whether BYD can maintain its leadership in China, but also whether it can defend its global position as more and more Chinese manufacturers aggressively enter export markets.
BYD is therefore counting more and more on local production outside China. The company plans to produce 75 percent of the cars it sells in Europe locally, reducing dependence on exports and responding more easily to regulatory and trade pressures.