This EV Company Became One of the Top 3 Manufacturers In China

One Chinese EV company is quickly shooting to the top. Which one is it, and what is their deal?
Written by Andrew Kidd
Reviewed by Kathleen Flear
When you think of
electric car manufacturers
,
Tesla
is probably the first to pop into your mind. But when it comes to the top electric automakers in China, one company is quickly rising to the top—and Tesla it isn't.

BYD hits top three EV manufacturers in China

As
CNBC
reports, Chinese
electric car maker
BYD saw its sales more than double for the month of May, placing it firmly in the top three among Chinese automakers. It's a stark contrast to 2021, where BYD ranked 13th in China in terms of passenger car sales.
BYD ranks just behind FAW-Volkswagen and ahead of Changan Automobile in terms of sales, according to the information coming from the China Passenger Car Association, which serves the world's largest automotive market. The latest figures show a 159.5% increase year-over-year in BYD's sales while its competition struggles.
BYD overcame COVID-19 supply chain issues and other obstacles to sell nearly 114,000 new energy (hybrid and battery-electric) passenger cars in May 2022.
MORE: Can the American Electric Car Industry Catch Up With China?
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BYD is closing in on the competition

BYD's 113,768 vehicles sold in May 2022 falls just behind FAW-Volkswagen's 150,009. FAW-Volkswagen is VW's joint venture in China, which sells VW and Audi vehicles. FAW-Volkswagen, conversely, saw a 10.6% year-over-year decrease in sales for May.
Geely rounded out the pack in third with 73,315 passenger cars sold in May, which was down 14.5% from last year.
Last year, BYD was 13th in passenger car sales and the top three looked a bit different: FAW-Volkswagen ranked first, while SAIC Volkswagen (another VW joint venture) and SAIC GM came in second and third.

Why is this a big deal?

It's a big achievement for BYD to rank so highly because China's passenger car sales in general fell 11.8% year over year. New energy vehicles, which include full-electric cars and hybrids, saw a year-over-year increase of 91.2%.
In terms of new energy passenger vehicle sales, BYD is on top, followed by SAIC General Motors and Tesla China.

What is BYD?

BYD (which is short for "Build Your Dreams") is a Chinese conglomerate manufacturing company based in Shenzhen, China and backed by Berkshire Hathaway, Warren Buffett's holding company. 
This backing injected about $230 million into the battery maker-turned-electric-car-maker, which might have had a part in making it a major brand in China. BYD has seen some of its vehicles competing directly with
Tesla
in terms of market share.
Before it began manufacturing vehicles in 2002, BYD had its start as a mobile phone battery manufacturer. After purchasing Tsinchuan Automobile, BYD started producing passenger vehicles and leveraged its battery production resources to build electric and hybrid vehicles.

What will the future hold?

If traditional combustion-engine passenger car sales are on their way out in China, then we can expect BYD to continue to give its competition a run for their money. 
Local automotive development and manufacturing capabilities give BYD an advantage, as other foreign automakers like VW and GM must pursue joint ventures with local partners, which can lead to some knowledge gaps and dissonance in the way business is conducted.
There's also the reluctance of western automakers to fully embrace electric vehicles much like China has in general, which could spell trouble for American and German joint ventures in the future as Chinese consumers drop gas-powered vehicles for their electric cousins.
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