Chinese auto giant BYD announced that it has achieved a significant milestone of producing 5 million new energy vehicles (NEVs). Vehicles classified as NEVs in China include pure electric EVS, plug-in hybrids (PHEVs), and range extenders (EREVs).
It took BYD a year to reach 2 million NEV units after passing the 1 million mark in May 2021. Six months later, it had hit 3 million already. That record has since been completely smashed by BYD, which produced 2 million units in just 9 months, at an average production rate of 7,407 cars per day. That is an incredible production record that speaks for itself.
The 5 millionth vehicle is a Denza N7 electric SUV. Denza is a BYD sub-brand that focuses on premium electric vehicles. It was once a 50:50 joint venture founded in May 2010 by Mercedes and BYD. However, it was never truly successful, and Mercedes exited the JV in December 2021, keeping only a 10% stake in it. And things have accelerated since BYD took charge.
BYD became the world’s first carmaker to completely abandon ICE vehicles in April 2022 and has since produced only NEVs. During the ceremony that was held to commemorate the numbers, BYD announced that it is the world’s first automaker to reach such a milestone. While highlighting the importance of NEVs in China, Wang Chuanfu, CEO and founder of BYD said:
“China has become a world power of NEVs. In the first half of this year, NEV penetration in China reached 32.5%. It is estimated that the penetration rate of new energy vehicles in China will reach 60% in 2025, and the market share of Chinese brands on the Chinese market will reach 70% in 2025.”
BYD has 9 manufacturing bases in China with Xi’an factory and its 900k unit capacity being the largest. Currently, BYD’s total annual capacity is over 1.95 million. Last year, the company started building a factory in Thailand with a 150,000 units annual capacity and has announced plans of building a couple of production facilities in Europe. BYD was also interested in setting up a factory in India but the plan got snubbed by the Indian government.
BYD is experiencing record-breaking sales this year. It surpassed Volkswagen as China’s best-selling brand in April, becoming the first homegrown brand to do so. From January through July, BYD passenger vehicle sales totaled 1,517,798 units, an increase of 88.81% over the same time last year. For BYD, this renders a 37% share of China’s NEV market. In comparison, Tesla has an 8.7% share, but remember it only sells EVs whereas BYD’s NEV numbers include PHEVs as well.
BYD sold 1.86 million units in 2022. However, its target for 2023 is 3 million NEVs, with an optimistic forecast of 3.6 million units. According to earlier projections by the media and analysts, BYD will sell 3.5 million domestic units this year and export around 200,000.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com