Chinese electric vehicle (EV) brand BYD maintained its position as the global No. 1 eco-friendly car seller last year. Experts attribute this success to BYD’s strategy of offering a diverse lineup that caters to a wide range of customer demands, from budget-friendly to premium models.
In contrast, Tesla and Hyundai Motor Group experienced a decline in sales. The limited variety in their existing models and decreased demand for their previously popular vehicles contributed to this downturn. As a result, both companies plan to focus on expanding their EV lineups this year.
According to data from energy market research firm SNE Research on global EV deliveries from January to December 2024, BYD sold 4.137 million units, achieving a 43.4% year-over-year growth rate and securing the top spot.
SNE Research explained that BYD’s success stems from strong domestic sales in China and rapid market share growth in international markets, aided by the popularity of its models, such as the Atto 3-4 and Dolphin.
Industry insiders particularly noted BYD’s extensive range of vehicle segments. Unlike most EV manufacturers, which focus on a few flagship models, BYD operates four separate EV brands, catering to a wide range of customers.
BYD has sub-brands like Denza, Yangwang, and Fangchengbao. The leading BYD brand produces mass-market EVs, while Denza, Yangwang, and Fangchengbao specialize in premium models.
Denza primarily manufactures MPVs like the Toyota Alphard, while Yangwang offers luxury SUVs like Mercedes-Benz’s G-Class and supercars. Fangchengbao sells traditional SUVs resembling Jeep models. Although these models often resemble existing designs, they have gained significant popularity in China’s domestic market and Southeast Asia.
BYD has maintained high growth through this strategy while flexibly navigating tariff barriers and expanding into global markets such as Europe, Southeast Asia, and South America.
In addition to BYD, China’s Geely Group has grown through its diverse brand strategy. Its brands, including Galaxy, Lynk & Co., and Zeekr, target the mid-to-high-end market. Last year, Geely achieved a remarkable growth rate of 59.8% compared to the previous year.
On the other hand, Tesla and Hyundai Motor Group faced declines due to limited EV options. Model 3 and Model Y sales, which account for about 95% of Tesla’s total sales, decreased by 1.1% compared to the previous year. In Europe and North America, where EV demand has slowed, sales dropped by 10%.
Since Tesla has only sold four to five models for years, the drop in popularity of these models directly impacted its sales.
Hyundai Motor Group is in a similar situation. Last year, the group sold approximately 550,000 EVs, a 1.8% year-over-year decline. The underperformance of key models like the Ioniq 5, EV6, and Niro contributed to this downturn.
In response, both Tesla and Hyundai Motor Group are actively working to strengthen their lineups this year. Tesla aims to produce a new budget EV in early 2025. The upcoming Tesla Q is expected to launch at a competitive price to rival BYD. Additionally, the company plans to gradually increase the availability of the Cybertruck, which has a dedicated global fanbase.
Hyundai Motor Group is also expanding its EV lineup this year. Following the launch of the Ioniq 9 in the U.S. market, the group has announced plans for the Kia EV2, EV4, and EV5, aiming to compete with BYD’s diverse product range.
An industry insider commented, “Chinese EV companies like BYD are actively pursuing market entry through brand diversification. Existing players, including Hyundai Motor Group, must explore multifaceted strategies to respond effectively.”
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