BYD, a Chinese automaker, is poised to surpass Tesla as the global leader in battery electric vehicles production.

• In 2024, it is predicted that BYD, a Chinese EV giant, will surpass Tesla in battery EV sales.
• Counterpoint Research analysts stated that this shift highlights the global EV market's dynamic nature.
• Although BYD surpassed Tesla in total production last year, it was still outpaced by the U.S. giant in the first quarter.

According to Counterpoint Research, released Tuesday, BYD, a Chinese electric vehicle startup, is predicted to surpass Tesla in battery electric vehicle sales this year, with its BEV market share anticipated to increase significantly.

The global EV market is constantly evolving, as shown by this shift, according to Counterpoint analysts in their report.

BYD's second-quarter battery EV sales increased by 20.9% year over year to 426,039 units, while Tesla's second-quarter deliveries decreased by 4.8% to 443,956 vehicles.

For the second consecutive year, BYD's total production of over 3 million cars, including battery-only and hybrid vehicles, surpassed Tesla's production of 1.84 million cars.

In terms of BEV production, Tesla was surpassed by BYD, which manufactured 1.6 million battery-only passenger cars and 1.4 million hybrids.

In the first quarter, the U.S. EV giant surpassed BYD as the top EV vendor.

The research firm predicts that China's BEV sales will be four times greater than North America's in 2024, with BYD leading the way.

According to Counterpoint, China will maintain a dominant market share of over 50% in global BEV sales until 2027, and by 2030, Chinese BEV sales will surpass the combined sales of North America and Europe.

The European Union declared that it would impose extra tariffs on Chinese electric vehicle companies to safeguard the EU industry from imminent harm.

The three Chinese automakers, BYD, Geely, and SAIC, will face additional tariffs of 17.4%, 20%, and 38.1%, respectively, on top of the standard 10% duty already imposed on imported electric vehicles.

If discussions with Chinese authorities do not result in a resolution, the duties will be introduced from July 4, although they are currently provisional, the commission stated on June 12.

Liz Lee, associate director at Counterpoint Research, stated that the EU's new tariff rates for Chinese EVs are intended to even the playing field for European EV manufacturers, who are facing competition from lower-priced Chinese imports.

Chinese automakers may shift towards emerging markets such as the Middle East and Africa, Latin America, Southeast Asia, Australia, and New Zealand due to these tariffs, according to Lee.

In 2024, global BEV sales are predicted to reach 10 million, concurrently with the decline of internal combustion engine vehicles, according to a report. This growth will be driven by initiatives aimed at enhancing the cost-effectiveness and affordability of EVs and EV batteries.

– CNBC's Evelyn Cheng contributed to this report.