Source: Cailian News Author: Zhou Zi Yi
According to a report released on Wednesday (July 24) by industry research institution BI, this year's sales of Tesla's pure electric vehicles will be inferior to those of BYD. Analysis shows that demand for electric vehicles in China is still surging, while demand in the United States and Europe is stagnant. This means that traditional internal combustion cars may become popular again, and traditional automakers may conduct share buybacks and acquisitions.
According to institutions' predictions, this year China's electric auto giant BYD Company Limited's annual sales of pure electric autos are expected to surpass those of Tesla.
In view of the fact that demand for electric vehicles in China is still surging, while demand in the United States and Europe is stagnant, industry research institution BI wrote in a report released on Wednesday (July 24) that the sales volume of Tesla's pure electric vehicles this year will be inferior to that of BYD.
This is a major turnaround from January's predictions, when BI predicted that Tesla would remain ahead of BYD until 2030.
Michael Dean, senior European automotive analyst at BI, pointed out in the report that the stagnation of demand for pure electric vehicles in Europe and the United States means that internal combustion vehicles including hybrid vehicles will become popular again, extending the profits of traditional automakers such as General Motors, Volkswagen, and Ford Motor, and may further drive their share buybacks or acquisitions.
An industry report released earlier this month by market research firm Counterpoint Research also showed that global sales of pure electric vehicles are expected to surpass 10 million units in 2024, and BYD will surpass Tesla in the sales volume of pure electric vehicles.
Electric vehicle demand is slowing down.
Tesla's disappointing quarterly profits were announced on Tuesday (July 23). The automaker's sales volume did not reach that of the same period last year, and it again warned that the growth rate of sales volume in 2024 will "significantly decline."
Dean, an analyst at BI, said, "Tesla's initial goal of 50% annual growth is now out of reach. Tesla's long-term success will depend on a cheaper, mass-produced Model 2, which has not yet been launched."
In addition, Porsche withdrew its target of "electric vehicles accounting for more than 80% of new car sales by 2030" on Monday (July 22), and also predicted that the time required for the transition to electric vehicles would be longer than originally thought.
BYD continued its growth momentum this year, benefiting from significant discounts in the domestic market, with shipments of electric and hybrid vehicles reaching nearly 1 million units in the second quarter. In the fourth quarter of last year, BYD's sales volume of pure electric vehicles reached 526,400 units, surpassing Tesla's sales volume of 484,500 units in the same period.
In terms of the whole year of 2018, Tesla ranked first in global sales of electric vehicles with sales volume of 1.81 million units, while BYD's sales volume of pure electric vehicles was 1.575 million units, ranking second.
In the long run, BI expects that BYD will maintain its sales lead over Tesla until 2027, and then Tesla will regain the top spot in 2028, while Volkswagen, ranking third, will gradually narrow the gap with the top two competitors.
In addition, Toyota's bet on internal combustion and hybrid vehicles is also paying off, as demand for electric vehicles slows down. The company has begun to gain a larger market share and its stock price has risen 50% since mid-2023.
Editor/Lambor