Chinese automaker BYD is set to reward its dealers with a total of RMB 2 billion ($280 million) after successfully achieving its 2023 sales target, according to sources familiar with the matter as reported by local media outlet Yicai.
BYD accomplished a record-breaking performance in December by selling 341,043 new energy vehicles (NEVs), contributing to a total of 3,024,417 units sold throughout 2023. The company’s initial sales target for the year was 3 million vehicles, with an ambitious strive to reach 3.6 million, as announced by BYD’s chairman and president Wang Chuanfu in March 2023.
See also: BYD Hits 341,043 NEV Sales in December, Surpassing 3 Million Target for 2023
For dealerships meeting their sales targets, BYD plans to issue a reward of RMB 666 for each vehicle sold. In cases where sales targets are not met, the incentive amount per vehicle will be determined by the target completion rate multiplied by RMB 666, according to Yicai. However, the report highlighted that most of BYD’s dealer stores in China successfully met their sales goals.
The planned RMB 2 billion incentive is substantial, equivalent to nearly 20 percent of BYD’s third-quarter net profit, which amounted to RMB 10.413 billion, marking an 82.16 percent year-on-year increase.
As BYD’s sales continue to surge, there are expectations that the company may surpass Tesla to become the global leader in the battery electric vehicle (BEV) market in the fourth quarter. In the third quarter, BYD sold 431,603 BEVs, closely trailing Tesla’s global deliveries of 435,059 vehicles. Additionally, BYD sold 390,491 plug-in hybrids (PHEVs) in the same period.
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Market researcher Counterpoint Research reported on December 18 that BYD Auto, excluding Denza, has caught up with Tesla in terms of the global BEV market share in the third quarter and is poised to overtake Tesla in the fourth quarter.
In the fourth quarter alone, BYD achieved impressive sales figures, selling 944,779 NEVs, including 526,409 passenger BEVs and 416,242 passenger PHEVs. The company’s continuous growth in the electric vehicle market positions it as a strong contender for the top spot in the global BEV market.
