World’s top EV maker BYD has set a sales target of 3.6- million-unit for 2024, a jump of 20% from its record-breaking sales last year, Reuters reported, quoting sources. The Chinese electric vehicle maker aims to sell five lakh vehicles overseas this year, which is more than double of its last year’s total foreign sales. The target for 2025 has been set at one million, the company’s Chairman Wang Chuanfu told BYD investor meeting.
Interestingly, these remarks came after BYD posted its slowest quarterly profit growth in two years as EV sales lost momentum in the world’s biggest auto market. The company’s Hong Kong shares sank 6.1% by the close on Wednesday, against a 1.4% fall in the broader Hang Seng index.
Since it dethroned Tesla to become the global leader in the EV space late last year, the company has stepped into the global spotlight. It also embarked on aggressive expansion into overseas markets, posing a robust challenge for rivals who have seen it grab market share in China. It has also become a relentless discounter in a price war against Tesla that began in China last year.
In his address to the investors, Wang said that the new energy vehicle industry had entered a “knockout round” with a battle in scale, cost and technology over 2024-2026. He also estimated that over the next three to five years, the market share of foreign brands in China will fall from 40% to 10%. He further predicted that BYD‘s vehicle margin would fall this year as the price war intensifies, but the company would, however, ensure its profitability remains stable by improving sales.
BYD plans to launch its next-generation plug-in hybrid system in May this year with the fifth-generation DMI technology. The latter would enable fuel consumption of 2.9 litres per 100 km and combined ranges of up to 2,000 kilometres, Wang said. The company will also launch models priced under 200,000 yuan in the second half of this year, equipped with advanced driving-assistance systems.
Additionally, BYD has been rolling out new versions of its line-up at prices 5-20% lower than earlier iterations, since February, helping attract more buyers.