China has emerged as the dominant force in the global electric vehicle (EV) market. In 2024, Chinese brands accounted for 62% of global EV sales. The Chinese EV market experienced substantial growth, with sales increasing by 40% compared to 2023, reaching 11.2 million registered battery-electric vehicles (BEVs) and plug-in hybrid (PHEV) sales.
BYD, a Chinese manufacturer, has become a key player, challenging Tesla in global EV production. In 2024, BYD's EV production nearly matched Tesla's, with BYD producing 1.778 million units compared to Tesla's 1.77 million. BYD's total worldwide car sales increased by 40% in 2024. The company is also expanding its global footprint with new plants in countries like Hungary and Indonesia.
The European Commission has expressed concerns about unfair competition from Chinese EVs due to subsidies and tax benefits. In October 2024, the EU imposed countervailing duties on imports of battery electric vehicles (BEVs) from China. These duties range from 17.0% for BYD to 35.3% for other non-cooperating companies. Volkswagen and Audi are also investing in the Chinese market, developing electric cars specifically for Chinese customers with a focus on digital systems and driver assistance.