China’s BYD reports 21% jump in quarterly EV sales, closes gap with Tesla

BEIJING (Reuters) – China’s BYD (BYDDY) reported a 21% increase in electric vehicle sales in the second quarter, closing the gap with Tesla (TSLA) after returning the title of world’s largest electric vehicle supplier to its rival North American in the first quarter.

BYD sold 426,039 EVs in the April-June quarter, according to Reuters calculations based on its monthly sales reports. That’s about 12,000 fewer vehicles than Tesla’s vehicle deliveries estimated for the second quarter.

Tesla is expected to report a 6% drop in vehicle deliveries in the April-June quarter on Tuesday, the first time the US company is expected to record two consecutive quarters of declines as it deals with stiff competition in China and slow demand due to a lack of new affordable models.

The company could again cede its EV championship to BYD if actual results are weaker than estimated, with Barclays forecasting an 11% drop in second-quarter deliveries, Tesla’s biggest ever.

Tesla has hit a speed bump after years of rapid growth that helped make it the world’s most valuable automaker. It warned in January that delivery growth in 2024 would be “notably lower” as momentum resulting from months-long price cuts faded.

The electric vehicle maker has reduced production of its best-selling Model Y electric car by a double-digit percentage at its Shanghai factory since March to deal with weakening demand for its older models in China, its second-largest market after the United States. United States, Reuters reported in May.

By comparison, its main Chinese competitor, BYD, has maintained steady growth in electric vehicle sales, while emerging electric vehicle companies like Nio have seen stellar growth in the last quarter. NIO’s vehicle deliveries in the second quarter more than doubled to 57,300 units.

Price cuts and an increasing shift in consumer demand for electric and hybrid vehicles from gasoline-powered vehicles are the main reasons behind Chinese electric vehicle makers’ strong sales in recent months, said Cui Dongshu, secretary-general. of the China Passenger Car Association (CPCA).

Sales of new energy vehicles, including EVs and plug-in hybrids, in China accounted for 46.7% of total auto sales in May, a new monthly high, according to CPCA data.

(Reporting by Qiaoyi Li, Zhang Yan and Kevin Krolicki; Editing by Miyoung Kim and Sherry Jacob-Phillips)