Chinese electric car giant races ahead of Tesla in Australia

Chinese electric car giant BYD sold a record number of vehicles in Australia last month, reflecting its aggressive local expansion campaign, the growing appeal of cheaper electric cars and the sinking popularity of Elon Musk’s Tesla.

Yet-to-be-filed sales figures show Australians bought more than 8000 new BYD vehicles in June, a 350 per cent increase compared with the same time last year, eclipsing the company’s previous monthly record of 4811 local sales in March.

Sales of BYD vehicles in Australia jumped more than 350 per cent in June, versus the same month last year.Credit: Bloomberg

The result widens BYD’s lead over its biggest rival, Tesla, which on Wednesday reported the sales of 4589 vehicles in Australia for June, which is a drop of 2 per cent versus the same month last year, and a 39 per cent year-to-date decline.

So far this year, BYD has sold about 23,000 vehicles in Australia, while Tesla has sold 14,146.

BYD’s blockbuster monthly result highlights the Shenzhen-based vehicle giant’s rising popularity in Australia since launching two years ago. Aggressive pricing and an emphasis on design have fuelled BYD’s ambitious plan to take on Tesla for the top spot on the Australian electric vehicle sales charts.

While Tesla has been the best-selling electric car brand for years, its sales have been sliding globally as motorists embrace cheaper Chinese models. Meanwhile, the Tesla brand has suffered intense backlash because of chief executive Elon Musk’s involvement with right-wing politics and Donald Trump’s administration in the United States.

BYD’s goal is to become one of Australia’s top-five automotive brands as it expands its product range and aims to double its local dealership network in the coming year.

In January, it launched its first plug-in hybrid electric ute, the Shark 6, which retails for $57,900 before on-road costs and is aimed at snatching market share from Australia’s top-selling utes, the Toyota Hilux and Ford Ranger.

The company has delivered more than 10,000 Shark 6s in Australia so far.

“You can see it when you’re driving around town: there are Sharks everywhere,” said Stephen Collins, BYD Australia’s chief operating officer.

The June sales figures matched the feedback BYD was receiving from the Australian public, Collins said.

BYD’s Shark 6 plug-in hybrid ute.Credit: Jason South.

After years of sluggish growth, sales of electric vehicles and plug-in hybrids now account for nearly 10 per cent of new Australian car sales. However, the adoption of fully battery-electric cars has begun to slow in Australia, in line with global trends, which analysts attribute to the impact of inflation and cost-of-living pressures.

Sales of plug-in hybrids – vehicles that combine a petrol engine with an electric motor and are typically cheaper than fully electric models – have increased.

To encourage manufacturers to import and sell more lower-emission vehicles and electric vehicles, the Albanese government has developed new fuel pollution limits, to apply only to new vehicles and to take effect this year.

Australia had been the only developed country, apart from Russia, that does not impose mandatory pollution caps, with one of the world’s highest emissions per kilometre travelled.

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