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BYD on track to top 2024 sales goal and outsell Ford, Honda

investing.com 09/12/2024 - 01:37 AM

BYD's Market Expansion and Sales Performance

SHANGHAI/BEIJING – China's leading electric vehicle producer, BYD (SZ:002594), is poised to gain further market share with the upcoming November sales data. This growth positions BYD to exceed its annual sales targets and surpass major competitors like Ford (NYSE:F) and Honda (NYSE:HMC) in global sales.

BYD's remarkable growth this year includes increasing production capacity and a significant hiring initiative, pushing its revenue past that of Tesla (NASDAQ:TSLA) in the third quarter.

Strong sales in China have helped BYD approach its annual sales goal of 4 million vehicles, aiming for higher sales figures than Honda and Ford in 2024. In the first 11 months of this year, BYD delivered 3.76 million vehicles, including 506,804 units in November alone.

BYD's diverse model lineup, especially those featuring advanced plug-in hybrid technology, is expected to continue expanding its market share as the China Passenger Car Association (CPCA) reveals industry-wide sales data.

By October, BYD held 16.2% of the Chinese auto market, a rise from 12.5% in 2023, while Volkswagen (ETR:VOWG_p) managed a combined market share of 12.5% from its two joint ventures with SAIC and FAW Group.

If the current sales trajectory holds, BYD could exceed 6 million unit sales over the next year, aligning it with top automaker groups like General Motors (NYSE:GM) and Stellantis (NYSE:STLA). Analysts project that BYD aims to deliver 5-6 million cars by 2025.

Despite not providing a comment on these advancements, BYD has recently ramped up its production capabilities, adding nearly 200,000 units and hiring 200,000 employees in auto and part manufacturing during August to October, bringing its total workforce close to 1 million.

This strategic scaling has enabled BYD to gain a competitive edge, manage costs effectively, and navigate China's challenging price wars, which have caused difficulties for many foreign automakers. Reports indicate BYD has also requested price reductions from numerous suppliers.

Recently, GM announced that it would incur over $5 billion in charges regarding its operations in China, attributed to restructuring and the decreasing value of a joint venture that has registered losses and falling sales.




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