China, a pivotal market for the automotive industry, has witnessed a significant transformation as BYD, the Chinese automaker, claimed the top spot as the country’s best-selling car brand in 2023, surpassing the longstanding reign of Volkswagen. While the Volkswagen Group, encompassing brands like Volkswagen, Audi, and China-specific Jetta, maintains its position as China’s largest automaker on a group level, this historic shift in individual brand rankings marks a notable milestone.
For almost 15 years, Volkswagen held the title of China’s best-selling automaker, establishing its presence as the first European automaker to venture into the Chinese market in the 1980s. However, the winds of change blew as BYD’s new energy vehicle (NEV) strategy, focusing on all-electric and hybrid-electric models, propelled it to the forefront. Despite Volkswagen’s offerings spanning both combustion and battery-powered vehicles, BYD’s success in the NEV segment proved decisive.
Data from China’s Automotive Technology and Research Center revealed that BYD registered 2.4 million new domestic car insurance registrations in 2023. While the exact number of Jetta deliveries within the Volkswagen Group hasn’t been disclosed, combined deliveries of the Volkswagen brand and Jetta approached 2.4 million. Subtracting Jetta deliveries positioned BYD at the zenith of China’s best-selling car brands, marking a historic loss for Volkswagen.
It’s important to note the distinction between registrations and deliveries, acknowledging that some delivered cars may remain uninsured for various reasons. The Volkswagen Group, in its annual report, emphasized overall growth without providing brand-specific details on Chinese deliveries for 2023. Despite this setback, on a group level, Volkswagen AG, which includes Audi, Porsche, Bentley, and others, retained its status as China’s largest automaker, achieving nearly 3.24 million units in sales last year—a 1.6 percent increase compared to 2022.
While Volkswagen faces new challenges in the fiercely competitive Chinese market, BYD’s ascendancy is particularly pronounced in the realm of electrified vehicles. In the last quarter of 2023, BYD outpaced Tesla by selling over half a million all-electric cars, solidifying its position as a major player in China’s EV market and potentially on a global scale. The Volkswagen Group delivered 771,100 all-electric vehicles worldwide in 2023, with 191,800 reaching the Chinese market through joint ventures with SAIC Motor and FAW Group.
As China continues to shape the future of the automotive industry, BYD’s triumph over Volkswagen signals a paradigm shift, emphasizing the growing influence of new energy vehicles in shaping the preferences of Chinese car buyers.
