- BYD recently established its first stores in Vietnam, while Tesla has yet to commence vehicle sales in the country.
- The EV sales in Singapore constitute approximately one-third of total vehicle sales in the first half of this year, indicating a growing preference for electric vehicles in the region.
OUR TAKE
On the one hand, BYD’s success in Singapore and Southeast Asia highlights the increasing competition in the EV market. On the other hand, Tesla has faced challenges with a decline in market share in Southeast Asia, reporting its lowest profit margin in over five years and missing earnings targets in the second quarter.
-Lia XU, BTW reporter
What happened
According to the latest government data, China’s BYD has widened its EV lead over Tesla in Singapore and Southeast Asia. BYD experienced a significant 83% increase in EV sales in Singapore in the first half of this year, selling 2,587 units, while Tesla only sold 969 cars during the same period.
BYD’s success in Singapore can be attributed to its aggressive marketing strategies, such as opening restaurants where customers can enjoy dishes inspired by its car models and book test drives. In Singapore, car owners must buy a certificate that costs about S$100,000 ($74,000). That’s the little price difference between BYD and Tesla.
After achieving some success in Singapore, BYD decided to expand its distribution partnership with local conglomerates in Thailand and open its first store in Vietnam. At the same time, Tesla‘s Southeast Asia market declined to 4% in the first quarter of this year from 6% the previous year, according to the latest data from Counterpoint.
Also read: Why I love Tesla so much more than BYD – a (strong) personal opinion
Also read: China’s BYD overtakes Tesla in quarterly sales: a new EV era?
Why it’s important
BYD’s strong growth and increased market share in the electric vehicle sector indicate its ambition to dominate the Southeast Asia market, challenging Tesla’s position and showcasing its competitiveness in the EV industry. The decline in Tesla’s market share in Southeast Asia, coupled with its challenges in meeting profit margins and earnings targets, reflects the intensifying competition in the EV market and the impact of price competition from rivals on established players like Tesla.
Singapore’s aim to halt the purchase of combustion-engine cars by 2030 underscores the government’s commitment to promoting clean energy and reducing carbon emissions, aligning with the global trend towards sustainable transportation solutions and influencing the EV market dynamics in the region. It’s good for BYD’s development.
Furthermore, it indicates a shift towards sustainable transportation options and the growing significance of EVs in the automotive industry in the region.
