The worldwide energy shortage has boosted BYD's return to the top of China's car industry, enabling it to catch up with... Geely Auto with increasing global interest in electric vehicles.
A Chinese electric vehicle (EV) company based in Shenzhen had relinquished its position as the country's top automaker in the first quarter of 2026 but experienced a significant recovery over the next two months due to rising fuel costs caused by the conflict between the United States, Israel, and Iran. During this time, its international shipments increased by 76 percent compared to the previous year, reaching almost 300,000 vehicles.
The revival has strengthened founder and chairman Wang Chuanfu's vision of making BYD the biggest automobile manufacturer globally by 2030, supported by progress in advanced battery systems and self-driving technologies.
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According to company data, BYD delivered 1.41 million cars worldwide from January to May, representing an increase of 19 percent compared to Geely's 1.18 million units.
Geely, which offers both gasoline and electric cars through brands such as Zeekr, Lynk, and Galaxy, took the lead in the initial quarter, producing 709,538 units versus BYD's 700,463.
Increasing electric vehicle adoption worldwide during April and May benefited BYD, even though the local market was underwhelming," stated Phate Zhang, founder of Shanghai-based data firm CnEVPost. "Strong sales beyond China proved to be the primary factor driving growth for the EV manufacturer.
In the initial five months of this year, BYD delivered 616,907 cars abroad, marking an increase of 65 percent compared to the previous year, which made up 44 percent of overall shipments.
The firm aims to achieve 1.3 million international sales in 2026, representing a roughly 24 percent increase compared to 2025, as stated by Li Yunfei, BYD’s head of brand management and communications, citing factors such as upcoming vehicle releases and a broader distribution system.
Tensions in the Middle East and the short-term shutdown of the Strait of Hormuz—where approximately one-fifth of global oil and natural gas shipments travel—caused Brent crude prices to rise over 60 percent from February 28 to April 29. Since then, prices have decreased by 11 percent, reaching roughly $85 per barrel on Wednesday.
With rising fuel prices, people across the globe have started to favor electric cars as a way to cut down on operating costs.
As the leading global electric vehicle producer, BYD intends to sell over 10 million cars each year by 2030, which would be twice its 2025 output of 4.6 million units. During a shareholder gathering on Tuesday, Wang detailed strategies to surpass Toyota and emerge as the top automaker worldwide.
Towards the end of May, BYD revealed that its The "God's Eye" next-generation driver assistance system will cost only 12,000 yuan (US$1,772), aiming to ultimately reduce traffic collisions once the system is activated.
The action highlighted the firm's commitment to establish itself as a top player in the evolving transportation landscape by developing smarter cars at reduced expenses.
Having secured the second spot behind BYD in vehicle shipments during the previous year, Geely stated in February that it plans to concentrate on increasing driving distance and enhancing charge rates instead of reducing costs to reinforce its standing within China, the globe's biggest automobile marketplace.
During December, the firm established a 2-billion-yuan safety evaluation center in Ningbo, which serves as an industrial key area located in eastern Zhejiang Province.
The holding company of Geely Auto, known as Zhejiang Geiley Holding Group, additionally has ownership of Volvo Cars and maintains an investment in the Mercedes-Benz Group.
Sales of Geely outside China — covering both gasoline and electric cars — increased by 158 percent compared to the same period last year, reaching 371,354 units during the first five months of 2026, which accounted for 31.5 percent of overall shipments.
Chinese automakers, including BYD and Leapmotor supported by Stellantis, are projected to sell 2.5 million cars to consumers in Western Europe by 2028, capturing around 20 percent of the market mainly because of their benefits in manufacturing and innovation merits of industrial processes and technical advancements positive aspects of creation and technological progress advantages related to fabrication and scientific development gains from production methods and tech improvements , as stated by Nick Lai, the head of Asian-Pacific automotive research at JPMorgan.
Chinese manufacturers sold approximately 1 million cars in Western Europe during 2025, covering key regions like Germany, France, Italy, and the UK.
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The article was first published on the South China Morning Post (www.scmp.com), a top-tier news outlet covering developments in China and Asia.
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