BYD sales soar off subsidized trade-ins

Chinese electric vehicle brand BYD is set to exceed its annual sales target and beat competitors like Ford after a strong Nov.

Driving the news: While foreign automakers continue to lose market share in China, the country’s domestic manufacturers continue to see success, according to Reuters.

• BYD sales reached 506,804 units in Nov., setting a new monthly record for the brand and pushing its share of China’s market to 17%.

• The company has sold 3.76 million vehicles since the start of the year. This places it on track to beat its goal of 4 million units.

Zooming in: If BYD’s sales volumes continue to grow, the brand will soon surpass major foreign competitors.

• Analysts from Citi say the automaker plans to sell between 5 and 6 million units in 2025. In comparison, Ford sold 4.4 million vehicles last year while General Motors delivered 6.2 million.

• To sustain its growth, BYD has boosted production capacity and hired an additional 200,000 workers over the last two quarters.

Looking ahead: However, last month’s sales were partially boosted by China’s government.

• Trade-in subsidies implemented this fall helped drive Nov. volumes up 16.6% across the country’s car industry.

• Reuters estimates that without subsidized support, national auto sales would have fallen about 4.4%.

Bottom line: BYD’s growth streak doesn’t show any signs of slowing, much to the dismay of other country’s automakers. However, its victories seem to rely heavily on government support.

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