Singapore (Business Emerge), July 25: Chinese electric vehicle manufacturer BYD has significantly increased its lead over Tesla in Singapore during the first half of this year, according to recent data. This highlights the mounting challenges for Tesla, the world’s largest electric vehicle maker by sales, as it contends with rising competition from Chinese counterparts.
BYD’s notable success in Singapore—a relatively small auto market—demonstrates the company’s ambition to dominate the Southeast Asian region. Despite the popularity of gasoline vehicles from Japanese and South Korean brands, Tesla has yet to make a significant impact in this market.
The Chinese automaker has already achieved considerable success in the region, with Thailand emerging as its largest overseas market. BYD’s expansion strategy includes forging distribution partnerships with local conglomerates.
In contrast, Tesla reported its lowest profit margin in over five years and fell short of Wall Street’s earnings expectations for the second quarter. The company faced heightened price competition and a sharp decline in global electric vehicle demand.
On the other hand, BYD saw a 21% increase in second-quarter sales and continues its robust expansion efforts beyond China. The company recently opened its first stores in Vietnam, where Tesla has not yet begun selling vehicles.
BYD has also enhanced its marketing initiatives in Singapore—a prosperous island nation with a population of 5.9 million and some of the highest vehicle taxes globally. The company has introduced two themed restaurants, where customers can enjoy meals inspired by BYD’s car models and arrange test drives.
In Singapore, BYD’s electric vehicle sales surged by 83% in the first half of this year compared to the total for 2023, reaching 2,587 units. Meanwhile, Tesla, which remains in second place, sold just 28 more cars than the previous year, bringing its total to 969 units.
Singapore’s vehicle owners face significant costs, including a S$100,000 ($74,000) certificate required for car purchases. The city-state plans to ban the sale of combustion-engine cars by 2030. EV sales accounted for approximately one-third of all vehicle sales in Singapore during the first half of the year.