Electric-vehicle manufacturer BYD reportedly claimed an historic milestone after a three-month period that earned revenues of over 200 billion yuan, which is nearly $28.2 billion or £21.8 billion. This is already up by 24 per cent from the same three-month period last year; with this, BYD edged out Tesla, a similar company that raked in $25.2 billion in revenue during that same quarter. Still, Tesla ended up holding its number one position in total sales for the third quarter, despite such revenue growth.
BYD revenues are jumping with the increases in sales of EVs in China, spurred by government subsidies to nudge consumers away from petrol-guzzling cars to electric or hybrid alternatives. BYD also set a record for its highest monthly sales in its last month for the quarter.
It’s been successful in China but now BYD faces ever-rising scrutiny and troubles on international markets. News has gone out that as much as 45.3% tariffs are applied in imports of Chinese-made electric vehicles to the European Union, sending alarm bells into the Chinese camp. This forms part of the whole action against accusations of Chinese car sector being enjoying the unearned state subsidies. And at the same time, both the United States and Canada have also enforced 100% tax against importation of Chinese-made electric cars.
The Chinese government has been keenly promoting the use of hi-tech products, including electric vehicles, to perk up its slowing economy. Official statistics released last week indicated that about 1.57 million applications were submitted for a national allowance of $2,800 for every older vehicle turned in to be replaced with a more environmentally friendly vehicle, among other similar incentives from the government.
As China’s domestic car industry continues to expand, brands like BYD are increasingly entering international markets, raising fears among European manufacturers that they may struggle to compete against lower-priced Chinese vehicles. The EU is currently the largest overseas market for China’s electric car industry, further highlighting the stakes involved in this competitive landscape.