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BYD passes Tesla in January EV sales
08 February, 2024
Electric vehicle sales in January 2024 saw a watershed moment that could well redefine the electric vehicle (EV) landscape in Australia – though the reason behind it literally stinks.
For the first time Chinese EV maker BYD surpassed Tesla to become the top-selling EV brand, selling 1310 electric cars for the month compared to Tesla’s 1107.
However, BYD's success in January was due to unique challenges faced by Tesla, historically the dominant leader in EV sales in Australia and globally.
These included logistical issues after a large shipment of Model Y SUVs being returned to China due to the detection of stink bugs, and a temporary halt in Model 3 deliveries due to compliance issues. This meant sales were down from 3,313 in January 2023, a decline of two-thirds.
The results, issued on Tuesday by Vfacts, echo reports of BYD’s dominance in the global plug-in electric car market last year when it sold more than three million “new energy vehicles” (which included plug-in hybrids) compared to Tesla’s 1.84 million. On battery electric vehicles alone, Tesla beat BYD’s 1.57 million battery electric vehicle sales.
This shift comes amidst a broader context of sluggish overall EV sales growth, marking a significant moment in the Australia’s transition to electric mobility. All but one of the top ten EVs sold in January – the Kia EV6 - were made in China. Chinese-made EVs are here to stay in Australia, whether they come from Tesla, or state-backed OEMs.
Although EV sales were therefore lower than expected, January still saw a marginal increase in EV sales, with 4,893 units sold. Electric vehicles accounted for 5.4% of new vehicle deliveries, up just 0.8% compared to the same period last year as the overall car market in January reached a new record with 89,782 vehicles sold overall.
However, BYD's success in January was due to unique challenges faced by Tesla, historically the dominant leader in EV sales in Australia and globally.
These included logistical issues after a large shipment of Model Y SUVs being returned to China due to the detection of stink bugs, and a temporary halt in Model 3 deliveries due to compliance issues. This meant sales were down from 3,313 in January 2023, a decline of two-thirds.
The results, issued on Tuesday by Vfacts, echo reports of BYD’s dominance in the global plug-in electric car market last year when it sold more than three million “new energy vehicles” (which included plug-in hybrids) compared to Tesla’s 1.84 million. On battery electric vehicles alone, Tesla beat BYD’s 1.57 million battery electric vehicle sales.
This shift comes amidst a broader context of sluggish overall EV sales growth, marking a significant moment in the Australia’s transition to electric mobility. All but one of the top ten EVs sold in January – the Kia EV6 - were made in China. Chinese-made EVs are here to stay in Australia, whether they come from Tesla, or state-backed OEMs.
Although EV sales were therefore lower than expected, January still saw a marginal increase in EV sales, with 4,893 units sold. Electric vehicles accounted for 5.4% of new vehicle deliveries, up just 0.8% compared to the same period last year as the overall car market in January reached a new record with 89,782 vehicles sold overall.
Tesla Model 3 tops EV sales
On the leaderboard, the Tesla Model 3 came in at #1 as the 2024 Highland arrived on showroom floors. The rival BYD Seal electric sedan followed in second place (589), while the MG MG4 came in third (537 sales.)
BYD's Atto 3 SUV (465 sales) and Dolphin hatchback (256 sales) also featured in the top ten at #4 and #6, showcasing the brand's growing appeal in the Australian market.
All but one of the top ten EVs sold in January – the Kia EV6 - were made in China.
The Tesla Model Y – not only the most popular EV but also the most popular car in the world in 2023 according to JATO Dynamics - nabbed #5 spot.
As this popularity is unlikely to wane in any hurry – Tesla's model range in Australia sits at just two whereas BYD has three, soon to be five, vehicles – we will most likely see the Model Y head back to the top after the stink bug issue is resolved.
The sales figures also highlight the varied performance of other brands in the EV space. MG, for example, alongside MG’s strong MG4 sales, had a modest success with 111 sales of the MG ZS EV.
Volvo, with 225 sales of its XC40 Pure Recharge (166) and C40 (59) models, experienced a dip compared to the previous year but is expected to rebound as it introduces new electric models like the EX30 electric SUV.
Polestar likewise has remained a popular choice with 151 sales in January and will in August start delivering its mid-range Polestar 4.
What’s in store for EV sales in 2024?
The latest figures come at a time when the Australian EV market is on the cusp of significant policy change. The recent New Vehicle Efficiency Standard policy announcement to be implemented in 2025 will see carmakers incentivised to introduce more EVs.
The past few years have seen EV sales triple annually, but whether this trend will continue as state EV rebates fall by the wayside is yet to be seen. It is possible 2024 will see a lull, but on the other hand with more EVs being introduced in 2024 than ever before, carmakers are already on the front foot to sell them.
As we look ahead, the competition between Tesla and BYD, along with other players in the EV market, will likely intensify. Tesla's sales are expected to rebound as it overcomes its recent hurdles, while BYD plans to expand its lineup with new models, including a plug-in hybrid ute and a mid-size SUV.
