BYD dethrones VW in China as number-one brand, led by EVs & PHEVs

Shenzhen carmaker Build Your Dreams (BYD) has ousted Volkswagen as China’s best-selling car brand for the first time – driven overwhelmingly by EVs and PHEVs.

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According to data compiled by Bloomberg [↗], BYD sold more than 440,000 pure-electric and plug-in hybrid electric vehicle (PHEV) models in the first quarter of 2023 in China.

In contrast, Volkswagen only managed to sell around 25,000 pure-electric and PHEVs, plus a whopping 403,000 traditional petrol and diesel-engined models in the same period.

That equates to BYD making up 10.4 per cent market share compared to Volkswagen at 10.1 per cent – with EVs accounting for almost 100 per cent and six per cent of sales respectively.

Volkswagen has been the best-selling carmaker in China since at least 2008 (when data first started being published), thanks to its separate joint ventures with SAIC Motor (which owns MG and LDV) and the FAW Group.

Despite Volkswagen’s China-exclusive electric models, such as the ID.4 Crozz and ID.4 X medium SUVs plus the ID.6 Crozz and ID.6 X seven-seat SUVs, BYD continues to dominate with the more affordable Song Plus SUV, Han large sedan, and Dolphin hatchback.

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Sources: China Automotive Technology and Research Center, Bloomberg | Note: Data reflects retail car sales; NEVs include pure EVs and PHEVs (plug-in hybrids)

In fact, seven out of 10 top-selling new cars in China last year was a BYD, according to InsideEVs [↗].

Unlike other automakers, BYD benefits from a vertically integrated supply chain, which means it produces most of its vehicle parts and technologies – including lithium-iron-phosphate (LFP) structural Blade Battery cells that are touted as safer and stronger than conventional packs.

The Chinese automaker started expanding globally rapidly last year to countries, including Australia, Japan, Thailand, Europe, and the United Kingdom with the globally-designed Atto 3 small electric SUV spearheading the roll out.

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Locally, more than 4200 BYD Atto 3 EVs have been sold since deliveries started in September 2022.

Despite a short sales hiatus, it has become the third-best selling EV in Australia – but the more expensive Tesla Model 3 sedan and Model Y SUV continue to dominate by a fair margin.

The Atto 3 is expected to be joined by the BYD Dolphin hatch, followed by the BYD Seal sedan to rival models including the MG 4, GWM Ora, Tesla Model 3, Hyundai Ioniq 6, and Polestar 2.

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