BYD Widens Gap with Tesla in 3Q22, Leads Global EV Market

Global passenger electric vehicle (EV) sales grew 71% in the third quarter of 2022, according to Counterpoint Research. In total EV sales, battery EVs (BEVs) accounted for almost 74% and plug-in hybrid EVs (PHEVs) the rest.

China remained the market leader in EV sales, followed by Europe and the US. China’s EV sales increased by over 100% to exceed 1.7 million units from just 0.88 million units in 3Q21. BYD Auto continued to lead the global EV market during the quarter. The Chinese automaker also managed to widen its gap with the second-placed Tesla.

“As semiconductor supplies ease, together with better availability of raw materials for batteries, global EV sales are increasing. Among nations, China is dominating the global EV market single-handedly. Three of the top five best-selling EV brands are from China. All three brands operate predominantly in China, highlighting the China EV market’s positive evolution,“ said Soumen Mandal, Senior Analyst at Counterpoint Research.

BYD Auto remained the global market leader, shipping more than 537,000 EV units, an increase of 197%. Its top three models - BYD Song, BYD Qin, and BYD Han - contributed to over 56% of the company’s sales during the quarter. BYD’s overseas operations have been picking up fast; it sold almost 17,000 EV units across various regions including Europe, Latin America, Southeast Asia, the Middle East and Africa, and Oceania in 3Q22.

Tesla’s global sales grew 43% to over 343,000 units. The company saw increased demand for its vehicles in Europe this quarter. The smoothing production ramp in its Berlin factory helped deliver a record number of Model Ys in Germany this quarter. However, deliveries fell short of expectations due to logistics bottlenecks.

Wuling grew by 31% to hold the third rank in the global EV market. The brand’s Hongguang Mini EV model has remained the undisputed market leader since its release in the second half of 2020. Mini-electric car sales in China are high as they cost less, are eligible for subsidies, and serve the purpose.

Volkswagen’s EV sales increased by 28% to recover from their Q2 dip. The ID.4, ID.3 and ID.6 series had the top-selling Volkswagen models during the quarter. The company showed impressive results in China with its EV sales growing 79% YoY and 35% QoQ. Although the brand’s sales in Europe and the US recovered sequentially, neither region registered YoY growth.

GAC Motor emerged as the fifth top-selling brand, overtaking BMW and Mercedes-Benz. During Q3, GAC sold more than 85,000 units to record a YoY growth of 145%. GAC spearheaded its Aion series, with the Aion Y as the top-selling model. The company operates only in China.

Chinese EV brands are making strong and steady progress. BMW has been pushed to sixth place by GAC Motor. Other brands like NIO, Xpeng, Lynk & Co, and Geometry have started building a strong global presence, whereas traditional European automakers like Audi, Volvo, Peugeot, and Renault are struggling to keep up with the competition. Among the top 25 EV brands in 3Q22, 14 were from China. The top 10 EV models accounted for more than 35% of global sales. Tesla’s Model Y remained the best-selling EV model. Six out of the top 10 best-selling EV models were from BYD Auto.

“EVs represent a growing share of global passenger vehicle sales. Currently, EVs account for more than 15% of global passenger vehicle sales. EVs are becoming the preferred choice for first-time car buyers across developed regions. This is also encouraging new players to enter the market. In addition, different battery chemistries that require little or no lithium are also being developed, with the new technologies promising similar or better efficiency compared to existing ones,“ said Peter Richardson, Research Vice President at Counterpoint Research.