The achievement of beating Tesla turned out to be a very special record for the Chinese car company, BYD. For the first time, since 2015, BYD can finally overthrow Tesla as the world’s largest seller of electric cars.
This note turned out to be quite impressive for BYD so that they were reported by Reuters, Thursday (4/1/2023) as being ready to share profits with all their dealers. No joke, they will prepare funds of 2 billion Yuan or the equivalent of IDR 4.3 trillion because of this achievement.
“The distribution is related to their commitment to provide a bonus of 666 Yuan (Rp. 1.4 million) for every electric car sold by dealers,” said an unnamed source close to BYD to Reuters.
The 666 Yuan bonus was determined because when said in Chinese it means cool or extraordinary. Currently BYD has succeeded in selling 3 million electric cars throughout 2023. This means they have to prepare funds of 2 billion Yuan or IDR 4.3 trillion according to this commitment.
It is known that currently BYD has 3,400 dealers throughout China. Later, all dealers will be given bonuses according to the sales records they achieve. So it is not immediately divided equally but adjusted to the achievements obtained throughout 2023.
This expense is actually not too burdensome for BYD. In the third quarter of 2023, they have actually managed to record a very large profit, namely 21 billion Yuan or around IDR 45.7 trillion.
Their profits until the end of 2023 are certain to increase drastically because in the fourth quarter of that year they actually managed to beat Tesla in terms of sales.
CNN reported, Wednesday (3/1/2024) that in the fourth quarter BYD managed to sell 525,409 units of electric cars. On the other hand, Tesla only sold 484,500 in the same period.
BYD’s success in beating Tesla’s sales was called by CNN as a symbol of the rise of China’s electric car industry. Support from the Chinese government has made electric car brands from that country global.
Chinese cars do not even hesitate to enter and disrupt the automotive market in Europe. They dare to compete against European car brands that are already well established.
This condition itself occurs because China already has a special target for electric cars. They set that by 2025 at least 20 percent of new cars sold will be New Energy Vehicles (NEV). By 2035, China hopes that new energy cars will achieve record sales.
“China is now leading in production and increasing its comparative advantage, relying on its large domestic market and first-mover advantage,” wrote analysts from Natixis Asia regarding the movement of Chinese-flagged electric cars around the world.
