BYD Group's total vehicle sales 2019-2022, by type

In fiscal year 2022, Chinese automotive giant BYD Group sold more than 1.8 million vehicles. Almost all the vehicles sold were passenger cars, including sport utility vehicles and multipurpose vehicles. Compared to the previous fiscal year, the company's passenger car sales increased by 151.83 percent in 2022.

A rising giant

Founded in 1995 by Wang Chuanfu, BYD began as a battery manufacturer, partnering with mobile phone brands to supply lithium-ion batteries for their products. In 2003, the company acquired an automotive company to obtain a license to manufacture automobiles, and successfully developed its first electric car the following year. However, for more than a decade, BYD continued to produce internal combustion engine vehicles until the recent boom in the electric vehicle market. By 2021, the company had become China's leading electric vehicle manufacturer, and by the end of 2023, BYD's market value had surpassed not only all of China's state-owned automakers, but also that of Volkswagen, making it the world's third-largest automaker.

Overproduction in China’s electric vehicle sector

BYD's annual revenue has increased more than 3.7 times since 2019, thanks to the rapid growth of China's electric vehicle market and increasing vehicle ownership in the country. However, there are potential concerns on the horizon. While fierce market competition and government subsidies have kept electric vehicle prices low in China, the domestic market is now struggling to absorb excess production capacity, leading to inventory issues for some automakers. With new rounds of tariffs planned by the U.S. and the E.U., the outlook for the Chinese EV industry therefore remains uncertain amid the overall slowdown in the Chinese economy.