BYD posts 21% increase in quarterly EV sales, closes gap with Tesla

Chinese automaker BYD posted a 21% increase in electric vehicle sales in the second quarter, closing the gap with Tesla after handing the title of the world’s top EV seller back to its U.S. rival in the first quarter.

BYD sold 426,039 electric vehicles in the April-June quarter, according to Reuters calculations based on its monthly sales reports. This is nearly 18,000 fewer vehicles than Tesla’s vehicle deliveries in the second quarter, but much less than the difference of more than 86,000 in the previous quarter.

Tesla’s second-quarter deliveries fell 4.8%, less than expected, to 443,956 vehicles on Tuesday, but it was still the first time the U.S. firm posted two consecutive quarters of declines as it grapples with stiff competition in China and sluggish demand due to a lack of affordable new models. However, price cuts and incentives helped Tesla beat expectations, sending shares up about 5% in morning trading.

Sales of Tesla’s China-made electric vehicles in June fell 24.2% from a year earlier to 71,007, according to data from the China Passenger Car Association (CPCA), extending a year-on-year decline for a third month.

According to CPCA data, new energy vehicle sales, which include electric and plug-in hybrid car sales in China, reached a new monthly high of 46.7% of total auto sales in May.