"No Longer a Knockoff": BYD's Low-Price Push Shakes Up the EV Market [Euracha-cha]

BYD Leaps to Sixth Place Globally, Overtaking Ford
Hyundai Motor Falls Behind BYD in the EV Market
Strong Price Competitiveness Drives Rapid Sales Growth

The growth trajectory of Chinese automaker BYD is becoming impossible to ignore. When BYD first entered the market, many expected it to remain focused on the Chinese domestic market. However, by leveraging its price competitiveness, it has rapidly penetrated global markets and begun to threaten established automakers with decades, even centuries, of history.

According to the industry on the 17th, BYD has, for the first time, overtaken U.S. company Ford in global sales volume. The so-called "balloon effect" caused by tariffs imposed by the Donald Trump administration in the United States, as well as the lack of future-vehicle readiness among traditional automakers, are cited as the main reasons.

Bloomberg News reported on the 10th (local time) that BYD sold 4.6 million vehicles in the global market last year, a 7.7% increase from 4.27 million units a year earlier.

The compact electric hatchback Dolphin, which BYD Korea officially began selling on the 11th, has a base trim priced at KRW 24.5 million, making it the cheapest electric car in the country at launch. BYD Korea

As a result, BYD ranked sixth in global sales volume, following Toyota (11.32 million units), Volkswagen (8.98 million units), Hyundai Motor Company and Kia (7.28 million units), General Motors (6.18 million units), and Stellantis (5.48 million units). In contrast, Ford sold 4.4 million vehicles, a 2% decline from the previous year, causing its ranking to be reversed with BYD.

The main factor behind BYD outselling Ford by 200,000 units is seen as Ford's declining market share in Europe and China. In particular, Chinese electric vehicles with strong price competitiveness appear to have significantly impacted the European market by aggressively targeting it amid the Trump-era tariff war. It is difficult to attribute BYD's performance solely to support from Chinese domestic demand.

Looking only at the electric vehicle market, BYD's position is even stronger.

In December last year, BYD overtook Tesla, which had held the top spot in electric vehicle sales, in the United Kingdom and Germany, the largest electric vehicle markets in Europe. While various controversial remarks by Tesla CEO Elon Musk in Europe played a role, it is still remarkable that BYD managed to surpass Tesla, the long-standing number one in EV sales.

So where does Hyundai Motor Group stand? In a report, energy-focused market research firm SNE Research estimated that the global electric vehicle market (including commercial vehicles), excluding China, reached approximately 7,662,000 units last year, up 26.6% from the previous year.

According to this report, BYD sold 627,000 electric vehicles outside China last year, a 141.8% surge from the previous year. BYD's ranking in non-Chinese markets rose from ninth in 2024 to third last year, while its market share climbed from 4.3% to 8.2%.

Hyundai Motor Group (Hyundai Motor Company and Kia) also sold 609,000 electric vehicles in non-Chinese markets last year, an 11.8% increase. However, its sales ranking fell from third to fourth, and its market share declined from 9.0% to 7.9%. In other words, it was overtaken by BYD.

In non-Chinese markets, the Volkswagen Group ranked first with 1,266,000 electric vehicles sold, a 60.0% increase from the previous year, while Tesla came in second, selling 1.01 million units despite a 10.7% decrease.

Munoz Jose, President and Chief Executive Officer of Hyundai Motor Company, is presenting at the "2025 Hyundai Motor Company CEO Investor Day." Hyundai Motor Company

In the domestic market as well, BYD's sales are growing rapidly. In January, the number of newly registered imported passenger cars came to 20,960 units. Among them, BYD ranked fifth in the domestic imported car market, following BMW, Mercedes-Benz, Tesla, and Lexus.

While BYD is making strong gains in the global market, Hyundai Motor Group has announced plans to target the Chinese market, BYD's home turf.

In an email titled "Our Goals and Direction for 2026" sent to all employees on the 10th, Munoz Jose, President and Chief Executive Officer of Hyundai Motor Company, said, "In China, we are further strengthening our business strategy to match the fiercely competitive market environment," adding, "This year, we are preparing to expand our production capacity in India and restructure our operations in China," emphasizing the company's push into the Chinese market.

This signaled Hyundai Motor Company's acknowledgment of its sluggish performance in China and its intention to reexamine and overhaul its overall business operations there. Hyundai Motor Company plans to unveil six China-only electric vehicle models by 2027.

With its strong price competitiveness and, more recently, solid evaluations of its technological capabilities, BYD is drawing increasing attention. The future trajectory of the electric vehicle market is now more intriguing than ever.