China's BYD to surpass Tesla in battery electric car sales by 2024

Chinese electric vehicle startup BYD is on its way to Tesla in battery electric vehicle sales this year, with BEVs expected to gain market share, according to Counterpoint Research released on Tuesday.

“This shift underscores the dynamic nature of the global electric vehicle market,” analysts at Counterpoint said in the report.

BYD's battery EV sales in the second quarter rose nearly 21% year-on-year to 426,039 units, according to CNBC's calculations. Tesla's second-quarter deliveries fell 4.8% to 443,956 vehicles.

Last year, BYD's total production (both battery-only and hybrid) exceeded 3 million units, surpassing Tesla's production of 1.84 million units for the second year in a row.

However, BYD produced 1.6 million battery-only passenger cars and 1.4 million hybrids, making Tesla the leader in electric car production.

BYD also lost its position as the largest supplier of electric vehicles to the US giant in the first quarter.

According to Counterpoint, China remains “a dominant force in the BEV market,” with BYD leading the way. Chinese BEV sales are expected to be four times that of North America by 2024, the research firm said.

According to Counterpoint, China will continue to hold a market share of more than 50% of global electric vehicle (BEV) sales through 2027. China's EV sales are expected to surpass the combined sales of North America and Europe by 2030.

Last month, the European Union announced it would impose additional tariffs on Chinese EV companies to address “the threat of clearly foreseeable and imminent damage to the EU industry.”

BYD will subject to additional tariffs of 17.4%, Geely will charge an additional 20% levy. SAIC will have to pay additional levies of 38.1% — the highest of the three. This is on top of the standard 10% import duty already levied on imported electric vehicles.

The tariffs are currently provisional, but will be introduced from July 4 if talks with Chinese authorities fail to find a solution, the commission said in a statement rack on June 12th.

“The EU’s new tariffs on Chinese electric cars are intended to level the playing field for European electric car makers, who are struggling to compete with cheaper Chinese imports,” said Liz Lee, deputy director of Counterpoint Research.

“These tariffs could push Chinese automakers towards emerging markets such as the Middle East and Africa, Latin America, Southeast Asia, Australia and New Zealand,” Lee added.

Global sales of BEVs are expected to reach 10 million units in 2024, coinciding with the continued decline of internal combustion engine vehicles, the report said. Growth will be supported by efforts to improve the cost-effectiveness and affordability of EVs and EV batteries.

– CNBC's Evelyn Cheng contributed to this report.