BYD has said it has produced its fifth millionth new energy vehicle (NEV).

The Chinese automaker overtook Western brand Volkswagen as the country’s bestselling brand earlier this year and has been engaged in a price war with Tesla as competition between automakers across the industry increases.

At the start of this year, the head of auto supplier Forvia said that China’s cost advantage would put pressure of European manufactures – an EV in China can be made for €10,000 ($10,618) less than European automakers.

Recently Stellantis CEO Carlos Tavares unveiled an affordable Citroën  EV priced under €25,000. It is set to launch next year to tackle what was dubbed the “Chinese invasion” of the European market.

Wang Chuanfu, Chairman and President of BYD said its 5 millionth NEV  was a “historic moment” for the firm: “On this special occasion, we would like to extend our sincere gratitude to our customers across the globe for their trust in our products, our partners in the industry for this journey shared together, and every one of our employees whose hard work and dedication have made this landmark possible.”

In China, EVs are now cheaper to buy than ICEs. The Chinese government has not announced any subsidies for conventional ICEs,  but extended the temporary purchase tax cut on NEVs, which was due to expire in December this year. Until 2025, NEVs will be exempt from a vehicle purchase tax. 

BYD says it has invested over RMB 20 billion in 2022 for R&D.

In 2023, the company reached a cumulative sales volume of 1.5 million units from January to July, including 92,469 units sold overseas.