Chinese electric vehicle giant BYD has reported record-breaking revenue in its latest quarterly earnings, surpassing Tesla for the first time. The company generated over 200 billion yuan ($28.2 billion, £21.8 billion) in revenue from July to September, marking a 24% increase year-over-year and outpacing Tesla’s $25.2 billion in quarterly earnings.
Despite this revenue achievement, Tesla remains the leader in electric vehicle (EV) sales volume, outselling BYD in the third quarter. The surge in BYD’s revenue aligns with strong government support for EV adoption in China, where subsidies encourage consumers to switch from traditional gasoline-powered vehicles to greener options like EVs or hybrids. The momentum continues as BYD also set a new monthly sales record at the close of the quarter, cementing its status as China’s top-selling automaker.
However, this domestic success is met with growing resistance abroad. Earlier this week, the European Union implemented tariffs of up to 45.3% on Chinese-made EVs across member states. These measures follow similar tariffs imposed by the United States and Canada, driven by concerns over alleged state subsidization of China’s automotive industry.
In China, demand remains strong, bolstered by a national subsidy of $2,800 per trade-in of older vehicles for greener alternatives. As of last week, over 1.57 million applications for the subsidy had been submitted, reflecting robust consumer interest. This is part of China’s strategy to drive economic recovery through high-tech exports, with the EU as a key market for its electric car industry.
As Chinese automakers like BYD expand internationally, concerns are rising within the EU about the potential impact of China’s competitively priced EVs on local automakers, underscoring the global complexities in the rapidly evolving electric vehicle landscape.
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