New quarterly record for BYD. The Chinese giant sold 426,000 100% electric cars between April and June 2024. An exceptional result that does not reflect the situation in Europe, where the brand struggles to establish itself.
426,000 electric cars delivered between April and June
Never had BYD sold so many electric cars in a quarter. With 426,000 units delivered during the second quarter of 2024, the manufacturer is making a big impact. In total, the brand sold 982,747 electrified vehicles (100% electric and plug-in hybrids combined) between April and June.
This record was mainly achieved thanks to extensive promotional offers. If we focus solely on the month of June, BYD sold a total of 340,211 electrified vehicles. This is also a new record for the Chinese manufacturer.
The price war in China is driving the manufacturer’s growth, at the expense of profitability. But it is a strategy embraced by BYD. The Chinese giant aims to crush its competitors by focusing on volume. To achieve this, the Shenzhen-based company is willing to make “only” $1,250 in profit per model sold. Still better than most brands.
BYD shines in China but not in Europe
While BYD excels in its domestic market, the situation is very different in Europe. The company struggles to establish its electric models on the Old Continent, despite a significant partnership with the Euro 2024 football tournament. The benefits may be felt in the second half of the year, once the brand has gained more recognition.
BYD has successfully dethroned Volkswagen by becoming the official partner of the football tournament. This is a satisfying development for Guy-Laurent Epstein, UEFA’s marketing director, who believes that “this partnership aligns perfectly with UEFA’s commitment to promote a greener and more sustainable European championship.” It is a significant achievement for the manufacturer.
However, regulations are set to change in Europe. The European Commission is preparing to introduce new customs duties on Chinese models. Consequently, the price of BYD’s electric cars could increase. Under these circumstances, it is difficult to see how the manufacturer could perform better. Unless BYD has the option to reduce its margins… and it seems that this is the case.