China's largest new energy vehicle (NEV) maker BYD rolled its five millionth car off the production line on August 9. Chairman and president Wang Chuanfu said automotive electrification is irreversible. China will likely see the NEV penetration rate surpass 60% in 2025.
It took BYD 13 years to reach one million NEV production in May 2021, according to the automaker. The company achieved 3 million NEVs in November 2022. Nine months later, it hit the 5 million mark.
Founded in 2003, BYD Auto stopped making internal combustion engine vehicles in March 2022 and enjoyed sales increasing to a record 1.86 million units in the same year.
BYD dethroned Volkswagen and became the best-selling brand in China earlier this year. According to the China Passenger Car Association (CPCA), BYD saw its retail sales of passenger cars reach 1,385,455 from January to July 2023 compared to FAW-Volkswagen Automobile's 990,785 vehicles.
When looking at CPCA's NEV sales data in July, BYD topped the list with 230,882 vehicles and a market share of 36%, followed by GAC Aion, which sold 45,025 cars last month.
NEV retail sales volume in China, July 2023 | |||
Carmaker | Sales volume | YoY change (%) | Market share (%) |
BYD | 230,882 | 45.2 | 36 |
GAC Aion | 45,025 | 79.9 | 7 |
Geely | 38,734 | 25.9 | 6 |
Changan | 35,209 | 120.2 | 5.5 |
SAIC-GM-Wuling | 34,811 | -13.8 | 5.4 |
Li Auto | 34,134 | 227.5 | 5.3 |
Tesla China | 31,423 | 271.4 | 4.9 |
Great Wall Motor | 26,505 | 159.9 | 4.1 |
Nio | 20,462 | 103.6 | 3.2 |
Leapmotor | 14,335 | 19 | 2.2 |
Source: CPCA, compiled by DIGITIMES Asia, August 2023
BYD said 92,469 of its cars sold overseas in the first seven months of 2023, exceeding the number of total vehicles it sold in foreign markets last year. Besides passenger cars, BYD also makes electric buses and taxis, which run in more than 70 countries.
At an event celebrating the five million production on Wednesday, Wang said BYD has invested heavily in battery technology since 2002 and plug-in hybrid EVs since 2003. Even in 2019, when the company reported only CNY1.6 billion (US$221.9 million) in net profits, it invested CNY8.4 billion in R&D that year.
According to BYD, it has rolled out the blade batteries, DM-i super hybrid system and other technologies over the years.
Wang said the NEV trend is irreversible. China has seen its NEV penetration rate double for two consecutive years since 2020. The number reached 32.4% in the first half of 2023. He said the rate is expected to exceed 60% in 2035 if the market keeps growing at the same pace.
