The Chinese electric car company BYD is currently on a massive growth path, including in Austria (we reported). Now the company has reached a new milestone in its home market of China. Last year, BYD sold 2.4 million vehicles in the People’s Republic. The company has thus exceeded Volkswagen’s sales of 2.3 million units. This is a historic shift, as BYD has now overtaken VW as the country’s best-selling car brand for the first time in 15 years, reports Golem.
Car manufacturer BYD is having a lightning start in Austria in 2023
Rapid growth for BYD
According to reports, BYD now holds an 11 percent share of the Chinese car market, up 3.2 percentage points from 2021. Volkswagen’s market share, however, fell to 10.27 percent. Since entering the automotive business in 2003, BYD has taken advantage of China’s booming electric vehicle market and generous government subsidies to become the country’s leading company. Last year alone, the group sold 1.6 million electric cars in China.
BYD’s rapid sales growth of 62 percent in 2023 reflects the changing automotive landscape. In total, Chinese car manufacturers sold around 9.4 million electric and hybrid vehicles in 2023, compared to 6.9 million in the previous year. Volkswagen and other foreign brands must therefore significantly expand their electric vehicle portfolio and localize production in order not to be left behind by China’s electric car industry.
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VW loses its top position
According to Automobilwoche, VW is currently struggling with low demand, especially for its electric models in the ID family. This is mainly due to the infotainment system: Chinese manufacturers often offer significantly more advanced solutions that better suit the tastes of customers. In addition, they offer cheaper vehicles and often have better access to battery cells due to their own factories. VW has since sent former brand boss Ralf Brandstätter to China to solve the problems and set up a research center to better understand the needs of Chinese customers. The Wolfsburg-based company is cooperating with rival Xpeng and is planning a new platform for affordable electric cars.
The Chinese market is very important for VW. Not only is it the world‘s largest car market, the VW passenger car brand in particular is extremely dependent on the market there. As long as local car manufacturers were not competitive in drive technology, VW was the market leader there – a position the company had held since at least 2008. But with the switch to electromobility, the cards are being reshuffled – at least at the moment to VW’s disadvantage.