According to a report by Automotive News, BYD was China’s top-selling car brand in November, beating out Volkswagen in a market where the German carmaker has had a strong footing.
Data from China Merchants Bank International (CMBI) revealed BYD’s sold 152,863 vehicles in the first four weeks of November, which represents an 83% increase compared to the same month in 2021.
The figure was higher than Volkswagen’s retail sales of 143,602 units, although this is discounting Audi sales – also part of the Volkswagen Group – of 36,847 units. If included, the combined Volkswagen and Audi sales would place Volkswagen Group ahead of BYD. The report also pointed out that Volkswagen and Toyota registered a year-on-year (YoY) decline in November by 0.3% and 0.5% respectively.
An exception to the bearish situation was Tesla, which saw sales nearly double year-on-year after it reduced its prices and offered incentives on its Model 3 and Model Y. Car sales in China were down 7% YoY, which is something carmakers have expected given waning incentives and the country’s aggressive lockdown measures to combat the Covid-19 pandemic.
BYD’s triumph is an indicator that Chinese brands have reached a point where they are able to properly take on legacy brands. As Automotive News, reports, domestic carmakers in China are capable of offering a wide range of affordable and tech-filled electric vehicles – China is the largest EV market – to draw consumers away from established names.
This has placed a lot of pressure on brands like Volkswagen, General Motors, Ford and Hyundai that have seen plant usage in China decline by between 30-50% in the past five years. Some have just up and left entirely, as Stellantis announced in October that its Jeep joint venture with Guangzhou Automobile Group (GAC Group) would file for bankruptcy, the first JV failure by a foreign brand in the EV era.
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