BYD Outpaces Tesla in Singapore’s EV Market in First Half

China’s BYD has significantly widened its sales lead over Tesla in Singapore in the first half of this year, according to government data. This trend underscores the growing challenge faced by Tesla, the world’s largest electric vehicle (EV) maker by sales, from Chinese competitors.

Ambitions in Southeast Asia:

BYD’s strong performance in Singapore, a relatively small but affluent auto market, highlights the company’s ambition to dominate the Southeast Asian market.

In this region, traditional gasoline car brands from Japan and South Korea have long been popular, and Tesla has yet to establish a substantial presence.

BYD has already made significant inroads, with Thailand being its largest overseas market, supported by distribution partnerships with local conglomerates.

Comparative Performance and Market Expansion:

While Tesla recently reported its lowest profit margin in over five years and missed Wall Street earnings targets in the second quarter due to mounting price competition and a slowdown in global EV demand, BYD experienced a contrasting trend.

BYD posted a 21% rise in second-quarter sales and continues to aggressively expand outside China. Notably, the company opened its first stores in Vietnam this week, where Tesla has yet to begin selling vehicles.

Marketing and Sales Strategy in Singapore:

In Singapore, BYD has intensified its marketing efforts, including opening two themed restaurants where customers can enjoy dishes inspired by its car models and book test drives.

This strategy has paid off, with BYD’s EV sales in Singapore soaring 83% in the first half of the year, reaching 2,587 units. In comparison, Tesla sold 969 vehicles, just 28 more than in the previous year.

Market Dynamics and Future Prospects:

Despite little price difference between BYD and Tesla vehicles in Singapore—where the cost of a mandatory car ownership certificate is around S$100,000 ($74,000)—BYD has managed to capture a larger share of the market.

Singapore aims to cease the sale of combustion-engine cars by 2030, and EV sales already accounted for about one-third of total vehicle sales in the first half of this year.

Tesla’s Market Share in Southeast Asia:

In the broader Southeast Asian market, Tesla’s market share dropped to 4% in the first quarter of this year from 6% a year earlier, despite the overall EV market in the region growing by 37% during the same period, according to data from research firm Counterpoint.