BYD sold more than 440,000 cars in China in the first quarter of 2023, overtaking Volkswagen as China’s best-selling car brand. Volkswagen sold 143,602 vehicles in November 2022, while Toyota sold 115,272 cars, making BYD’s sales 83% higher than in the same time. BYD sold 1.86 million vehicles in 2022, more than it did in the previous four years combined, and accounted for two in every five new-energy car sales in China in the first quarter. BYD sold almost 550,000 cars globally in January-March, more than all of the passenger vehicle registrations in China in the same period.
The Chinese government has played a significant role in supporting the growth and success of BYD. China’s central government has implemented policies aimed at promoting the use of electric vehicles, such as offering subsidies and tax incentives to consumers who purchase EVs. These policies have helped create a favorable environment for companies like BYD to thrive in the Chinese market.
Several factors have contributed to BYD’s rise in sales. Firstly, BYD has been able to take advantage of the huge increase in demand for all-electrics and plug-in hybrids in China by offering a complete lineup of affordable and premium sedans, hatchbacks, and sports utility vehicles. Secondly, BYD has a strong capability to offer a wide range of plug-in hybrids, which has been buoyed by rising oil prices in recent months, resulting in the growing popularity of plug-in hybrids in the country. Thirdly, BYD’s performance has been boosted by stronger domestic demand for plug-in hybrid cars. Fourthly, BYD has been able to outpace Tesla by almost 200,000 units in sales of electric and hybrid vehicles in the third quarter of 2022. Finally, BYD’s sales in China are up almost 69% this year, giving it an 11% share of the overall car market, more than Volkswagen.