Chinese electric vehicle (EV) giant BYD has officially overtaken Tesla in revenue, marking a major shift in the global EV industry. According to BIS Research, Electric vehicle market estimated to witness growth at CAGR of 28.3% and we can see BYD reported a record-breaking revenue of 777.1 billion yuan ($107.2 billion) in 2024, driven by soaring demand for its electric and hybrid vehicles across Asia, Europe and Latin America.
This marks a pivotal moment in the competition between the world’s two leading EV manufacturers, as Tesla, founded by Elon Musk, has long been considered the dominant force in the electric car sector. However, BYD aggressive pricing strategy, localized manufacturing, and diverse product portfolio have helped it gain ground rapidly, particularly in developing markets.
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Founded in 1995 and backed by investor Warren Buffett, BYD (Build Your Dreams) has evolved from a battery manufacturer into one of the most innovative players in the global EV battery space. In 2024 alone, the company sold over 3 million vehicles, a significant jump from previous years. Its dual focus on battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) has enabled it to cater to a wider customer base.
BYD’s success is also attributed to its expansion into international markets. In countries like Brazil, Thailand and Germany, BYD has launched popular models such as the Dolphin, Seal, and Atto 3, often priced more competitively than Tesla’s Model 3 or Model Y.
While Tesla remains an influential player in the EV sector, 2024 brought several challenges. Increased price competition, especially from Chinese automakers, combined with supply chain constraints and a saturation of premium EV segments, slowed its revenue growth.
Moreover, Tesla’s reluctance to diversify beyond BEVs, compared to BYD’s successful hybrid strategy has limited its flexibility in cost-sensitive markets. As a result, Tesla’s market share is being squeezed, not just in China, but globally.
BYD’s aggressive global expansion strategy includes building manufacturing plants in Thailand, Brazil, and Hungary, reducing dependence on Chinese exports and appealing to local consumers through region-specific models. The company also ended production of internal combustion engine (ICE) vehicles in 2022, transitioning fully to electric and plug-in hybrid models, a move that has resonated with environmentally conscious buyers.
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BYD's 2024 EV Surge Marks Global Turning Point, Says BIS Research
BYD’s record-breaking 2024 signals a major shift in the global electric vehicle industry, according to BIS Research. Key growth drivers include its vertically integrated supply chain, diverse and affordable EV lineup, and competitive pricing. BYD’s success highlights China’s growing dominance in electric mobility, setting a high benchmark for traditional automakers and startups worldwide. BIS Research predicts that ongoing government support in Asia-Pacific and Latin America will fuel further EV adoption, positioning BYD to extend its global lead in 2025 and beyond.
BIS Research provides a Custom Research specifically for the Automotive industry, offering market intelligence solutions which deliver data-driven insights on emerging tech, business models, and competition to support strategic decisions.
