In 2024, China registered 31.436 million new automobiles, a rise of 4.5 per cent over the previous year, with the growth of NEVs (new energy vehicles) jumping an astonishing 35.5 per cent.

In the passenger vehicle market, China achieved an annual penetration rate of NEVs of 47.6% throughout 2024, with the percentage of new sales exceeding 50% for five consecutive months in the second half of the year.

That trend has continued into 2025, with China’s February NEV sales reaching 892,000, up 87 per cent from February 2024. BEV and PHEV sales were up 85% and 90% year on year respectively, far outpacing the overall demand growth (including ICE vehicles) of 34 per cent.

As the country’s biggest car maker BYD says, the facts demonstrate the unstoppable trend of electrification and accelerated replacement of ICE vehicles with NEVs.

As the world’s largest NEV producer, BYD is leading the charge both domestically and internationally on transforming the possibilities of electrified mobility and household electrification. Its rival, Tesla, has effectively left the race when it comes to sales growth.

The BYD profit report released overnight reveals that BYD generated RMB 777.1 billion ($US107 billion) in revenues in 2024, up 29.02% yoy, driven by a 40% yoy growth in NEV sales.

This translated to a 34% yoy growth of net profit to RMB 40.3bn ($US5.55bn) over the year for BYD, even as it invested RMB 54.2bn ($US7.48 billion) into R&D in 2024, taking its total investment into R&D to RMB 180bn ($US24.83 billion), most of it into its world-leading technology in batteries, electronics and EVs.

The company has 120,000 R&D engineers, and submits an average of 45 patent applications and 20 patent licenses every day. One of the latest is the ‘Super e-Platform’, enabling 1,000 kW charging power. Stepping into the era of “charging as fast as refuelling” with the ability to charge 400km in just 5 minutes.

The impact of that R&D is there to see. Battery prices have fallen 82% in the last 10 years alone. In the same time, battery densities have risen 5-fold.

In 2024, lithium-ion battery prices fell a further 20% to a record low of US$115/kWh as manufacturing overcapacity continues to surge.

In 2024, 3,100 GWh of fully commissioned battery-cell manufacturing capacity was online, more than 2.5x that of annual demand. This has driven massive demand growth for EVs and stationary energy storage (BESS) systems globally, with China continuing to dominate.

BYD is already showing incredible growth in 2025, with sales up 93% in the first two months of the year to 623,300 vehicles.

Figure: Tesla, BYD Share Performance 25 March 2025 YTD

While Tesla’s profitability contracted over 2024, and its share price continues to dive as the US regresses on climate, clean energy and trade, BYD’s share price is up more than 51% in 2025 on the Hong Kong Exchange.

China was already the winner. Now it is clear, the runner-up has left the race. Incredible to see the EV revolution and China’s leadership in real time.

Matt Pollard is a

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