BYD Surpasses Tesla in Quarterly Sales: Electric Car Market in Transition

The Chinese electric vehicle giant BYD has catapulted its quarterly sales to new heights, surpassing Tesla for the first time. From July to September, BYD recorded revenues of over 200 billion yuan, equivalent to approximately 28.2 billion US dollars. This represents a 24 percent increase compared to the previous year and surpasses the 25.2 billion US dollars in sales that Elon Musk's company achieved during the same period. Despite these impressive sales figures, Tesla continued to sell more electric vehicles than BYD in the third quarter. The Chinese electric vehicle market is currently experiencing a significant boom, thanks to government subsidies aimed at encouraging consumers to exchange their gasoline-powered cars for electric vehicles or hybrids. In the last month of the quarter, BYD reached a monthly sales record, indicating that the upward trend for China's leading car manufacturer continues. However, there is growing overseas resistance to government support for local manufacturers like BYD. Earlier this week, the European Union imposed tariffs of up to 45.3 percent on imports of Chinese electric vehicles. Previously, Chinese manufacturers faced 100-percent taxes in the United States and Canada. These tariffs are a response to the allegedly unfair subsidization of the Chinese automotive industry. As of last week, 1.57 million applications had been submitted for a national subsidy of 2,800 US dollars for each older vehicle that is exchanged for a more environmentally friendly one. These come in addition to other government incentives. China is increasingly relying on high-tech products to revive its sluggish economy, with the EU representing the largest overseas market for the Chinese electric car industry. The domestic automobile industry has developed rapidly over the past two decades, and brands like BYD are already penetrating international markets, fueling concerns within the European Union that local companies cannot compete with the lower prices.