The automotive industry is right now going through a massive shake-up. Some of the most valuable car brands in the world seem to be struggling, employees are going on strike, and the electric revolution has not turned out to be what industry pundits expected. As we reach the end of 2024, the global automotive sales numbers are coming in and there’s one massive surprise from the far-east, and it’s a car brand that is taking the industry by storm and is also on pace to topple Ford from its global sales rankings.
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BYD’s Meteoric Rise In The Auto Industry
BYD, which stands for ‘Build Your Dreams’, is a rising Chinese automaker, that threatens to surpass Ford in sales by the end of 2024. Once a relative newcomer, BYD’s explosive growth highlights a potential turning point for legacy automakers in the face of fierce competition. What’s impressive about this feat is that BYD does not even sell cars in the US market.
In October, BYD sold half a million vehicles, largely thanks to its plug-in hybrid models. As of November 2024, the Chinese carmaker has already surpassed 3.25 million vehicles sold globally. If this sales growth continues, BYD could sell more than 4 million units by the end of 2024. Ford on the other hand has averaged 1.1 million units every quarter, but growth is not as high as BYD.
Ford is currently the sixth-largest automaker in the world by sales, but it’s also stuck in its old ways. BYD, on the other hand, is capitalizing on its cost-efficient production model and vast lineup of product offerings. BYD also benefits from strong domestic demand in China and a vertically integrated supply chain, allowing it to deliver more vehicles at lower costs.
BYD now operates in over 70 countries , while Ford – despite its rich 120-year history – has struggled to keep pace.
2023 Automotive Brand Rankings By Sales
- Toyota
- Volkswagen
- Hyundai Kia
- Stellantis
- General Motors
- Ford
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BYD’s Challenge To Everyone
BYD isn’t just on the path to take down Ford. The thriving Chinese brand is also giving Tesla a run for its money. In Q3 2024, BYD outpaced Tesla’s revenue for the first time, reporting $28.2 billion compared to Tesla’s $25.2 billion. Once again, the Chinese company’s diverse lineup, which includes extended-range hybrids (some capable of 600 miles), has appealed to a broader audience than Tesla’s pure EV focus and smaller product portfolio.
Other automakers are also struggling right now. Nissan has faced declining revenue, slashing payrolls and production forecasts, putting it on track to fall further behind. Stellantis, General Motors, and other legacy brands are also struggling to sell EVs profitably, while BYD’s lower production costs and aggressive global strategy give it a significant edge.
The U.S. market, just like Canada, is imposing heavy tariffs on Chinese cars because it is aware of the potential aggressive competition domestic brands will face from Chinese manufacturers. The Alliance for American Manufacturing has called the rise of Chinese automakers an “extinction-level event for the U.S. auto sector.” However, BYD can also look at setting up manufacturing facilities in Mexico if they do plan to enter the US market at some point further down the line.
As the automotive industry evolves, legacy brands like Ford must adapt to compete in a market increasingly dominated by disruptive newcomers like BYD.
