Il 2025 It promises to be the year of the clash epic in the global market of electric cars, With the China ready to dictate the rules of the game. The “promotion war” broke out in 2023 and has risen in level in 2024, amid aggressive incentives and ruthless strategies. The giants of the sector, from Byd a Tesla, they challenge each other without holding back to conquer the throne of an increasingly crowded market.
In 2024, BYD – the Chinese giant based in Shenzhen – closed the gap with Elon Musk’s carmaker in battery electric vehicles (BEV): 1,76 million units sold against 1,79 million of its American rival. With a dizzying growth rate and ambitious global expansion plans, the Chinese giant could overtake Tesla as early as 2025, crowning itself the undisputed leader.
While the show in China is getting more and more exciting, Europe is fighting its own battle, held back by stringent regulations and a stagnant demand for EVs. 2025 will be the crossroads: will the West be able to stay in the game or will it be the definitive triumph of the Chinese electric empire?
BYD: A Record-Breaking Rise, But Not Without Obstacles
In 2024, BYD consolidated its leadership in new energy vehicles (Nev), with a increase with sales 41% from the previous year, exceeding 4,25 million vehicles sold. Of these, 1,76 million were fully electric (BEV) and 2,49 million plug-in hybrids (PHEV). The company achieved annual revenues of over $100 billion, but failed to overtake Tesla in the Bev segment, which registered 1,79 million vehicles, with a slight decline in sales (-1,1%). In December, BYD reached a record of 509.440 vehicles sold. In Italy, the company signed 3.200 contracts in the quarter, of which 1.500 in December, bringing annual registrations to 2.886 units and the market share from 0,09% in the first nine months to 0,6% in December.
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BYD’s meteoric growth has not been without its setbacks. In Brazil, the company was embroiled in a scandal over working conditions at a factory, raising questions about its business practices. Although it responded quickly by severing ties with the local manufacturer responsible, the incident could affect its reputation in some markets.
Fierce competition and margins under pressure
In addition to Tesla, BYD faces strong competition from other Chinese manufacturers such as Li car, XPeng, Nio e zeekr. Growing competition in the Chinese market is squeezing the profit margins, a common phenomenon in the sector. Government support policies have been instrumental in growth so far, but may not be enough to sustain the same momentum in the future, potentially also having a negative impact on international sales.
BYD: International Expansion and Ambitious Goals for 2025
2025 will be a decisive year for BYD, especially in Europe, where it aims to exceed 500 points of sale by the end of the year. In November 2024, BYD surpassed MG (the Chinese brand of Saic), becoming the first Chinese manufacturer of electric vehicles in Europe, thanks to relatively low customs duties (17%). To consolidate its position, the company plans to open new plants in Hungary and Turkey, which will help reduce the impact of duties and boost European production capacity.
Meanwhile, BYD continues to strengthen its position in other international markets such as Asia Pacific, Latin America and the Middle East, despite the difficulties encountered during expansion.
BYD: The Challenge with Tesla Intensifies
The duel with Tesla remains at the heart of BYD's strategy. If Tesla has dominated the BEV market thanks to its advanced technology and strong global presence, Byd is filling the gap thanks to a diverse range of models and Chinese government support. BYD's presence in PHEVs, a segment where Tesla is less competitive, has allowed the Chinese company to maintain constant growth, despite the decline in sales of its American rival.
Furthermore, BYD confirms its position as the second largest battery supplier in China, with 194,7 GWh installed in 2024 (+29% compared to the previous year). Its customers include Tesla, Nio and Toyota, demonstrating its key role in the entire electric mobility supply chain.
Promotions and incentives: who offers more?
Li Auto and Nio have already launched aggressive promotions for 2025, while BYD offers discounts of up to 11,5% on some models. Tesla, for its part, has extended a discount of 10 thousand yuan (about 1.366 euros) on the Model Y, its best-seller in China. In 2024, the NEV market in China exceeded 10 million units sold, thanks also to trade-ins subsidized up to 20 thousand yuan (more than 2.700 dollars).
