'Tesla and BYD dominate electric vehicle sales'

Tesla and BYD have been the big winners in the electric vehicle market in 2023, according to an industry expert, who has also hailed the success of Chinese EV manufacturer GAC. 

The International Energy Agency has predicted that EV sales will reach 14 million by the end of the year, which represents a 35 percent year-on-year increase.

In 2022, 22 percent of passenger vehicles sold in China were all-electric, which adds up to 4.4 million sales. That's higher than the three million EVs sold in the rest of the world combined.

David Bailey, professor of business economics at the University of Birmingham, says Chinese EV manufacturers and their various models are now dominating global sales.

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'BYD world's biggest EV maker'

"Tesla and BYD are dominating sales," he told CGTN Europe. "We see that with Tesla, with the Model Y and the refreshed Model Three.

"But then you look at the top 10 best sellers, it's very much dominated by BYD. The only other significant player is another Chinese firm, GAC.

"If you go down to the top 20, you'll see European firms like Mercedes and BMW, but it's very much Chinese dominated. In the West we talk about Tesla a lot but BYD is probably the biggest EV maker in the world. 

"They've been making EVs for 20 years and have a big cost advantage. they can produce electric vehicles at something like 20 to 25 percent lower cost than European rivals."

EV sales on the rise

Reducing transport-related emissions remains a key priority for nations worldwide as they pursue their goal of reaching net zero by 2050 and transitioning to sustainable, emissions-free transport.

The result has been a surge in sales of EVs across the world, but Bailey says that the size of the increase in sales hasn't been quite as big as manufacturers expected.  

"We've continued to see progress in terms of EV sales, so that EVs still are taking a bigger share of the market. But that very rapid growth in 2022 is starting to slow this year.

"That's not really surprising because what we're seeing is EVs going from the really kind of top end premium end, Tesla end of the market, into the mass market where consumers are more price sensitive."

Chinese EV firms enter international market

As 2024 approaches, U.S., European and Chinese car manufacturers are preparing to do battle as they attempt to seize an increasing share of the EV market.

But with Chinese firms able to make cars at a lower cost and sell them to consumers for cheaper prices than their European rivals, the likes of BYD and GAC could break into new markets.

"I think we'll see further internationalization from Chinese firms," says Bailey. "So those Chinese firms like BYD will start, I think, to really push into European markets and we'll see more Chinese made cars on the roads. 

"We already see that and we're going to see a lot more in the future. I think there's going to be an effort by the European Union to really protect the European industry. We might well see subsidies coming in on a bigger scale for European car makers and tariffs to protect the European market."

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