China’s BYD tops EV sales, outpaces Tesla for 1st time

[beijingwalker]

China’s BYD tops EV sales, outpaces Tesla for 1st time​

By Kan Hyeong-woo
Published : Feb 13, 2023

The number of registered electric vehicles surpassed 10 million in 2022, as the EV industry continued its upward trend with the Chinese market’s strong growth, a report showed Monday.

According to market tracker SNE Research, global EV registrations increased by 61.3 percent on year in 2022 to reach 10.83 million.

The report said BYD, a Chinese EV maker, grew by 205 percent on-year to account for 17.3 percent of the global EV market and also became the biggest EV seller in the world, as the brand logged 1.87 million registered EVs.

Although Tesla, the US EV giant that held the top spot in 2021, showed 40 percent on-year growth, the electric automaker slipped to second place with 12.1 percent market share last year.

Geely, another Chinese EV maker, was the only other company in the top ten to have posted triple-digit growth rate along with BYD. According to the report, EV sales in China jumped 97.1 percent on-year to 6.56 million units, whereas EV markets in the US and Europe grew by 49.8 percent and 11.2 percent on-year, respectively.

Hyundai Motor and Kia grew 41 percent on year, but South Korean automakers’ overall market share fell to 4.7 percent from the previous year’s 5.4 percent. Hyundai Motor Group fell to sixth place on the list behind Geely.

Meanwhile, cumulative US sales of Hyundai Motor Group’s EVs reached 100,000 units as of January, according to industry sources. The Korean automaker achieved the milestone about eight years after selling its first such vehicle in the US -- the Kia Soul EV -- in 2014.

Hyundai’s EV sales began to show noticeable growth as the automaker’s small sport utility vehicles, such as the Hyundai Kona Electric and Kia Niro EV, hit the US market in 2019. The number of Hyundai’s US EV sales logged nearly 20,000 in 2021. After the automaker’s awards-winning EVs -- Hyundai Ioniq 5, Kia EV6 and Genesis GV60 -- were released in the US last year, the company’s yearly figure jumped to 58,028 in 2022.

According to InsideEVs, Hyundai Motor Group ranked third in the US EV market with a 7.1 percent market share, following Tesla and Ford. The automaker has laid out the goal of selling over 130,000 EVs in the US this year with new models -- Hyundai Ioniq 6, Kia EV9 and Genesis GV70 -- set to be released throughout the course of the year.

China’s BYD tops EV sales, outpaces Tesla for 1st time

The number of registered electric vehicles surpassed 10 million in 2022, as the EV industry continued its upward trend with the Chinese market’s strong growth, a report showed Monday. According to market tracker SNE Research, global EV registrations increased by 61.3 percent on year in 2022 to...

www.koreaherald.com

 

[Hamartia Antidote]

How did BYD even lose it?

They had EV's back in 2009...years before Tesla even sold its first Model S/3/X/Y.

2009

 

[kankan326]

How did BYD even lose it?

They had EV's back in 2009...years before Tesla even sold its first Model S/3/X/Y.

2009

Because Musk has a deeper pocket.

 

[beijingwalker]

How did BYD even lose it?

They had EV's back in 2009...years before Tesla even sold its first Model S/3/X/Y.

2009

Cause today is not 2009

 

[beijingwalker]

Why Tesla is Going Downhill in China​

Feb 16, 2023, 06:49 PM

Tesla (NASDAQ: TSLA) may not be doing so well in China even as its sales soared 18% month-over-month in January. Last year, TSLA slashed its prices in China twice.

Even with the higher sales in China, it is widely believed that the EV major has lagged behind its Chinese competitors when it comes to the introduction of new models in this market, improvement in its navigation systems, and the addition of luxury interior touches.

In a bid to change this, TSLA recently halted production temporarily at its plant in Shanghai to make production upgrades and roll out a revamped Model 3 in China. The company aims to produce 20,000 vehicles per week at its Shanghai factory in March.

But will these measures be enough to take over its Chinese competitors? As Elon Musk, Tesla’s Founder and CEO admitted on its Q4 earnings call that the Chinese market was the “most competitive in the world.”

According to a Reuters report, citing data from the China Passenger Car Association (CPCA), Tesla’s market share is eroding – from 15% in 2020 to just 10% last year. This loss of market share is not because of falling demand for EVs. On the contrary, the Chinese Association of Automobile Manufacturers has projected sales of EVs and plug-in hybrids to surge by 35% this year to 9 million vehicles, representing around 33% of the country’s total new vehicle sales.

Chinese Peers are Overtaking Tesla​

Among Tesla’s Chinese competitors, the Warren Buffet-backed BYD (BYDDY) has been the most formidable one. The company delivered the second-best vehicle delivery numbers in China in January after Tesla as sales soared 62.4% year-over-year.

BYD has already overtaken TSLA in terms of global volumes and currently has around 60 different versions of EV and plug-in hybrid cars.

As Charlie Munger told CNBC, “Tesla last year reduced its prices in China twice. BYD increased its prices. We are direct competitors. BYD is so much ahead of Tesla in China … it’s almost ridiculous.”

Indeed, BYD expects to report an adjusted annual profit for FY22 of $2.4 billion, a massive jump of 1,200% over FY21.

When it comes to TSLA’s navigation systems, there have been reports that these systems have been slow to update and not entirely free of errors on Chinese roads.

As a Chinese auto blogger, Chang Yan told Reuters, “This is a sharp contrast with Nio, (EV brands) Xpeng and Li Auto, whose navigation aids have been working almost perfectly.”

This is also echoed by these Chinese EV companies’ January numbers as except for Li Auto (LI), both XPeng (XPEV) and NIO (NIO) saw a jump in vehicle deliveries.

Analyst Gordon Johnson of GLJ Research is not gung-ho about TSLA’s prospects in China either. The analyst is bearish about the stock with a Sell rating with a price target of $73. Johnson’s price target implies a downside potential of 65.9% at current levels.

The analyst pointed out that TSLA sold just 6,963 thousand cars in China in the week between February 6 to February 12 – only 39% of around 17,734 thousand vehicles produced by the company every week in Shanghai in January.

Accordingly, Johnson sees Tesla’s Q1 sales in China down by 25.8% quarter-on-quarter to around 90,000 units, well below the consensus estimates of around 129,000 units.

The analyst commented, “Stated more clearly, should TSLA’s 1Q23 domestic China sales come in below and/or around 100K, as the data currently suggests it will, we believe the stock would come under acute selling pressure.”

Why Tesla is Going Downhill in China - TipRanks.com

Tesla (NASDAQ: TSLA) may not be doing so well in China even as its sales soared 18% month-over-month in January. Last year, TSLA slashed its prices in China twice. ...

www.tipranks.com

 

[beijingwalker]

The Tesla Competitor Dominating China’s EV Market | U.S. vs. China | WSJ​

 

[beijingwalker]

Charlie Munger: BYD Is ‘Much Ahead of Tesla’ in China​

Feb 16 2023 · 09:26 UTC by Darya Rudz ·

In January 2023, BYD sold 151,341 vehicles, including 71,338 pure electric vehicles. The company has been ranking first in the sales of pure electric vehicles in China for ten consecutive months.

Charlie Munger, the longtime investment partner of Warren Buffett, as well as vice chairman of the famed holding company Berkshire Hathaway Inc (NYSE: BRK.A), has named a major Chinese automaker BYD Co. Ltd (OTC US: BYDDF) as his favorite stock ever. According to Charlie Munger, BYD is doing so well and is so far ahead of the US electric vehicle giant Tesla Inc (NASDAQ: TSLA) in China that “it’s almost ridiculous”.

Speaking at the Daily Journal’s virtual annual meeting on Wednesday, Munger stated:

“Tesla last year reduced its prices in China twice. BYD increased its prices. We are direct competitors. BYD is so much ahead of Tesla in China, it’s almost ridiculous.”

He further added:

“BYD last year made more than $2 billion after taxes in the auto business in China. It’s incredible what’s happened. If you count all the manufacturing space they have in China to make cars, it would amount to a big percentage of the Manhattan island, and nobody had ever heard of them a few years ago.”

In 2022, Tesla saw a 37.1% growth in sales in China, with over 439,770 units sold. The company cut prices on its China models a few times last year in an effort to shore up sales and seems that the initiative helped. As we have reported, the price reductions resulted from Tesla’s low delivery count in December 2021, the lowest in more than 5 months. And that was the first time when Shenzhen-based EV manufacturer BYD surpassed Tesla in global sales of electric vehicles. For comparison, for the first six months of 2022, BYD sold a total of 640,000 vehicles while Tesla sold a total of 564,000 vehicles.

In January 2023, BYD sold 151,341 vehicles, including 71,338 pure electric vehicles. The company has been ranking first in the sales of pure electric vehicles in China for ten consecutive months. Besides, BYD has been actively expanding its presence in international markets in recent years. BYD exported 10,409 pure electric vehicles in January 2023, which marks a significant increase of 31 times year-on-year. It has become the sales champion of pure electric vehicles in Israel and New Zealand.

Berkshire Hathaway’s Investment in BYD​

BYD has grown significantly over the past few years and with top investors like Warren Buffett, the company has enough reserve for research to debut its own unique products. Berkshire Hathaway made its first move to acquire BYD shares after the global financial crisis of 2008, stacking up $230 million worth of the stock at the time at an average price of HK$8 ($1.02).

Now, BYD stock is the favorite one of Charlie Munger. When asked if he would prefer Tesla or BYD, Munger said the answer is obvious. Even though Berkshire Hathaway recently sold a part of its BYD shares, Munger has “never helped do anything at Berkshire that was as good as BYD”.

Currently, Berkshire Hathaway owns 153.3 million shares of BYD, which represents a 14% stake.

Charlie Munger: BYD Is 'Much Ahead of Tesla' in China

Charlie Munger has named a major Chinese automaker BYD his favourite stock ever, saying BYD is much ahead of Tesla.

www.coinspeaker.com