China's BYD catches up with Tesla in electric car sales

Chinese carmaker BYD is showing significant growth in electric car sales, approaching the figures of US company Tesla. According to data published by Reuters, BYD increased sales of electric cars by 21% in the second quarter of this year.

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BYD's total number of electric cars sold was 426,039 units from April to June, just 12,000 less than Tesla's total for the same period. This puts BYD in a favourable position to take a leading position in the global market.

Tesla, for its part, reported a five per cent drop in deliveries in the latest quarter, the first instance of two consecutive quarters of decline. The company produced 410,831 units and delivered 443,956 electric vehicles in the second quarter. Production was down more than 20,000 units from the first quarter.

One reason for Tesla's declining sales may be its abandonment of budget models in favour of developing robotaxis and stainless steel cars. While BYD's cars are affordably priced, for example, the recently launched Seagull costs just $10,000.

BYD is strengthening its position in the global market by producing affordable electric cars of high quality. Some manufacturers such as Nissan and Hyundai have already noticed this trend and offered their budget models. However, Tesla seems to have overlooked this trend, which could affect its market share in the future.

Source: Reuters