Chinese EV automaker, BYD, outsold Tesla in the final quarter of 2023. By a pretty wide margin: 526,409 to Tesla’s 484,507. That’s not to say Tesla is in trouble by any means, but it’s clear that the EV tides are changing fast. And a tsunami to be watching is China.
In America, EV sales have hit somewhat of a ceiling…
The EV movement is meeting more & more resistance with Americans. Resistance to cost, poor quality, propaganda, forced legislation, range limitations, etc. America has a cultural love affair with the automobile. We also love our freedom to travel, explore, & tinker. Those traits don’t necessarily cross over to Chinese buyers. However, China is the largest car-buying market in the world, almost double that of the US. And Chinese car buyers are adopting EVs with open arms & little-to-no apprehension.
BYD just broke into the Top 10 in terms of global car sales…
They are number 10 on that list, which means Tesla is not present. And the rest of the list is slotted with the legacy brands you’d expect (Toyota, Volkswagen, Hyundai/Kia, Nissan/Renault, Stellantis, GM, Ford, Honda, and Suzuki). But – this is where the tides are changing:
Chinese car buyers are now buying less imported cars from America & Europe, and they’re in turn buying more Chinese domestic brands – like BYD. And this is – despite all the EVs that legacy automakers are bringing to the table. China is the largest car market in the world (by almost double). And since the influx of electrification, legacy carmakers are watching their numbers shrink in the largest market globally. And here’s the thing…
EVs level the playing field.
There’s not much diversity in driving dynamics, serviceability, or soul with an electric vehicle. And all the expertise & pedigree gained over the last 100+ years of engine building, does not translate to EVs. EVs take the nuances out of the driving experience, and essentially turn vehicles into electronic devices. And while China cannot build an alluring car that resonates with people for generations… China can build electronic devices cheaper than anyone. Especially in the case of EVs where they had a major head-start on lithium & cobalt refining. Chinese electric car brands have already disrupted & undercut the European car market. And there is absolutely no question that the US market is in their crosshairs. BYD is backed by Warren Buffet.
Legacy automakers (Toyota excluded) have allowed themselves to get completely spun off their axis by Tesla, electrification overhype, and government over-legislation. Now they’re losing marketshare in the largest car market, China. And – they’re looking down the barrel of having to start playing defense domestically as well.
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