In terms of revenue, China’s BYD surpassed Tesla last fall, and by December the company had become the sixth-largest automaker in the world, and it ended the entire 2024 with higher revenue and growth rates. According to analysts, by the end of the current year, BYD will also surpass Tesla in the number of electric vehicles produced, taking 15.7% of the world market.
Image source: BYD
Importantly, these statistics take into account battery-electric vehicles, because while Tesla produces only such vehicles, BYD produces approximately twice as many plug-in hybrids as pure-bred electric vehicles. But even in the battery-electric category, BYD has every chance, according to representatives of Counterpoint Research, to overtake Tesla in real terms by the end of the current year, which will remain in second place with its 15.3% of the world market.
In addition to a wider range, BYD can also offer more advanced technical solutions, such as a 1000-volt architecture and megawatt charging stations that can replenish up to 400 km of range in just five minutes. BYD has its own production of traction batteries and is constantly improving the corresponding technologies. Together with a high degree of vertical integration in the production of other components, this allows the company to offer advanced electric vehicles at very competitive prices – at least in the domestic market of China.
Counterpoint Research expects that the Chinese holding Geely, which includes the Volvo passenger car division, the Zeekr, Polestar and Lynk & Co brands, will be in third place in the ranking of the largest electric vehicle manufacturers by the end of this year. This group will occupy 7.5% of the world market for battery electric vehicles by the end of 2025. The European auto giant Volkswagen will lag just a little behind with 7.1% of the market and will take fourth place, which for a classic auto concern from outside China in the current conditions can be considered a very successful result.
The fifth-largest EV manufacturer with a 4.7% share will be a little-known joint venture between SAIC, GM and Wuling outside of China, which produces affordable EVs primarily for the local market. Even after abandoning the minimalism in the design and performance of its cars, Wuling has retained the ability to offer consumers low prices. All remaining manufacturers will collectively control 49.7% of the EV market by the end of this year.
By the way, Rho Motion experts found out that based on the results of last year, only four manufacturers of electrified passenger cars worked with a profit, and all the rest were unprofitable. Tesla, rightfully an old-timer of the market, holds the first place with a profit margin of 7.4%, BYD is in second place with 6.4%, and the third place went to the startup Li Auto (Lixiang), which recently reported the release of its millionth car. It should be taken into account that the majority of this brand’s products are serial hybrids, which imply the presence of an internal combustion engine. But in fourth place is the Seres (Aito) brand, supported by the Chinese industrial giant Huawei Technologies. Together with Li Auto, they are the first companies producing hybrids and electric vehicles that have managed to achieve profitability without large-scale vertical integration of business, like the market leaders.