Automotive Sales Increase

Tech bros are arguing about robotaxis. The market is quietly counting factories. When Elon Musk was asked if BYD could challenge Tesla in 2011, he threw back his head and laughed. "Have you seen their car?" he scoffed. Fourteen years later, BYD overtook Tesla as the world's top EV seller in 2025. Tesla's deliveries fell 9%; BYD hit 2.26 million EVs. -In Austin, Tesla runs 30 robotaxis (most with human babysitters). Waymo runs 200 driverless cars in the same city. What Musk missed: fifteen years of battery expertise, millions of e-bikes and buses deployed, and a manufacturing system built in silence while Tesla chased spectacle. What happens when you don't sustain innovation? Ask BMW. The German automaker launched the i3 in 2014 after spending $3 billion on Project i - fifteen times what Apple spent developing the original iPhone. Then profit-hungry silos choked off funding. The engineering team scattered. Project chief Ulrich Kranz left for Faraday Future. Development head Carsten Breitfeld became CEO of China's Byton. BMW's own innovation team ended up building the competition. BYD's approach was methodical: 1. They Built Capabilities in Sequence BYD cranked out millions of battery packs for e-bikes and scooters across Asia in the 2000s. That taught them energy density and thermal management under real-world abuse. Then buses - 50,000 electric buses serving 300 cities by 2019. Buses demanded system integration at scale: powertrains that could handle brutal daily miles, battery management that prevented catastrophic failures, and warranty structures that made every weakness visible. Each step wasn't just market expansion. It was the foundation for the next capability. 2. They Owned Every Part That Mattered My colleague Mark Greeven toured both factories. Tesla's Shanghai Gigafactory spits out one car every 37 seconds. Then he visited BYD's Shenshan complex - four and a half times larger. BYD casts its own motors, laminates Blade Battery cells, designs its own IGBT and SiC chips through BYD Semiconductor. Autonomous mobile robots shuttle trays between coating, calendaring, and formation stations. Warehouse drones scan QR codes to reorder stock automatically. The Blade line operates with 50 workers per gigawatt-hour - one-fifth the labor of a typical Western plant. 3. They're Building the Factory That Swallows Cities BYD's next campus in Zhengzhou spans nearly fifty square miles. Larger than San Francisco. Ten times Tesla's Nevada Gigafactory. Projected output: one million vehicles per year with its own deep-water port. While Tesla bets its future on robotaxis as car sales slide 16% year-over-year, BYD keeps grinding on the fundamentals. The future wasn't hyped into existence. It was engineered in a factory no one was watching, one capability at a time. P.S. Full breakdown in the first comment 👇

This is the full ranking for the global sales of light vehicles (passenger cars, pickup trucks, and light commercial vehicles) between January and September 2024. Main facts: - Top leadership unchanged with Toyota always ahead despite posting a 4% decrease. The company is being challenged in China, where its volume fell by 10%, but keeps a solid position in both USA and Europe. Toyota is the top seller in the majority of the emerging and poor economies. - Volkswagen Group lost 2.8% vs Jan-Sep 2023, mainly because of China (-10%) where it’s no longer the leader. As its electric vehicles struggle outside Europe, it is looking desperately to join forces with local Chinese makers and reduce costs in Europe. - Hyundai-Kia was down by 1.6% driven by China’s drop of 37% in contrast to stable sales in USA. Its electric vehicles are also suffering in the West. - Stellantis is the most worrying case. It is not exposed to the Chinese market but still recorded a sales drop of 15% or 700,000 units less than Jan-Sep/23. The group lost 17% in sales in USA, and 15% in Europe. Seven of its 13 brands are in dire need of new products. - General Motors improved its EV sales but was negatively affected by its Chinese operations (-44%). China is the group’s second largest market. - Ford total sales increased by 21,000 units thanks to the 3% growth in USA, which was offset by the 16% drop in China and 7% drop in Europe. - Honda was down by 3.7% also affected by its Chinese operations, down by 26%. Sales increased by 30% in Europe, but the total is not relevant compared to volumes in Japan, USA, and Asian nations. - BYD is the star of the year thanks to the outstanding results at home in China. Total sales increased by 32% boosted by more demand in China, where it sold 89% of its global volumes. Meanwhile it is climbing rankings in Southeast Asia, Latin America, and Europe. BYD is expected to hit the world’s top 5 by the end of next year. Other facts: - Geely Group, up by 22%, thanks to Volvo, ZEEKR and Galaxy products in China. - Xiaomi is heading to 100,000 units mark sales by the end of the year. #carindustryanalysis #felipemunoz #automotive #carsales #carstats

Don’t buy Chinese cars 🚗 They couldn't compete with Tesla in technology, nor could they match European luxury brands in interiors and speed. 10 years ago, that maybe valid. But today? That narrative has changed. While Elon Musk juggles SpaceX, robotaxis, and social media projects, BYD remains laser-focused on its core business, as highlighted in Howard's latest article at IMD. Quietly, BYD has surpassed Tesla to become the no. 1 in EV market share! Last week, I visited BYD with my students and was blown away by their innovative models and efficient operations. - They produce 70 cars in just one hour. - A fully integrated value chain - engines, chassis, suspensions & batteries. - One car model can accelerate to 100 km/h in just 2.36 seconds. - They even have a car that converts into a boat! - Their fast-charging tech can deliver 400 km of range in just 5 minutes! I’m constantly amazed by the value for money that Chinese products offer. A model in the US$25K to 30K range is already like super luxurious - seats with massages, big front and back screens and voice control systems, etc. BYD isn’t just tech-savvy and cost effective, their quality is top-notch. ⭐ Don't forget their first car model was in 2005. In 20 years, they became the champion in its field. The trick? Focus. Over dinner, friends pointed out that European brands (BBA - Benz, BMW and Audi) are catching up in technology while maintaining their luxury appeal. With over 100 years of heritage, consumers may return to these brands. That’s a fair point. However, let's not overlook the rapid innovation from Chinese EV brands like BYD, Li, Xpeng, and NIO. They're evolving faster and at lower costs on a global scale. 🚀 𝑊𝑎𝑛𝑔 𝐶ℎ𝑢𝑎𝑛𝑓𝑢, 𝐵𝑌𝐷’𝑠 𝑓𝑜𝑢𝑛𝑑𝑒𝑟 𝑎𝑛𝑑 𝑐ℎ𝑎𝑖𝑟𝑚𝑎𝑛, 𝑠𝑡𝑎𝑡𝑒𝑠, “𝑇ℎ𝑒 𝑏𝑎𝑡𝑡𝑒𝑟𝑦 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑓𝑜𝑟 𝑢𝑝 𝑡𝑜 40% 𝑜𝑓 𝑎𝑛 𝐸𝑉’𝑠 𝑐𝑜𝑠𝑡. 𝐴 𝐵𝑌𝐷 𝑐𝑎𝑟, 𝑐𝑜𝑚𝑝𝑎𝑟𝑎𝑏𝑙𝑒 𝑡𝑜 𝑡ℎ𝑒 𝑀𝑜𝑑𝑒𝑙 3, 𝑐𝑜𝑠𝑡𝑠 15% 𝑙𝑒𝑠𝑠 𝑡𝑜 𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑡ℎ𝑎𝑛 𝑇𝑒𝑠𝑙𝑎’𝑠 𝑆ℎ𝑎𝑛𝑔ℎ𝑎𝑖 𝑓𝑎𝑐𝑡𝑜𝑟𝑦. 𝑂𝑢𝑟 𝑖𝑛-ℎ𝑜𝑢𝑠𝑒 𝑐𝑜𝑛𝑡𝑟𝑜𝑙 𝑔𝑖𝑣𝑒𝑠 𝑢𝑠 𝑎 𝑐𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑖𝑣𝑒 𝑒𝑑𝑔𝑒.” Industry players are playing musical chairs and consumers will benefit. How do you see EV rankings shifting in the next 3-5 years? #innovation #supplychain #business PolyU Business School | Institute for Supply Management Hong Kong

⚡🇪🇺 How a 48% Tariff Couldn't Stop This. Chinese EV brands are winning big in Europe. Just look at the numbers: their combined EV market share hit 9.9% in July 2025, nearly doubling in a single year. In2025 Munich International Auto Show on September 8, Chinese powerhouses like BYD, XPeng, Leapmotor, and Chery unveiled hybrid and EV models amid EU tariffs. This "core battlefield" shift, fueled by price wars at home and U.S. barriers, sees Chinese firms doubling their European share to 4.8% in H1 2025 (+91% YoY to 347,135 units), pressuring locals like Volkswagen and Stellantis to cut costs. Here's how four major players are executing their winning playbook. 1️⃣ BYD: The Tesla Challenger From a newcomer with just 3 stores and monthly sales under 100 units in Germany two years ago, BYD has become a true force. Today, with over 400 outlets across Europe, it's the fastest-growing Chinese brand. With its sights set on the premium segment, the next strategic move for BYD could be a luxury EV sedan designed to rival models like the BMW i7. 2️⃣ XPeng: The Premium Pioneer In 2023, XPeng was a niche player with under 1,000 units sold in a handful of markets. By H1 2025, it had emerged as Europe’s top high-end Chinese brand, with 8,338 registrations. The brand's focus on technological leadership continues, with new battery tech promising a 1,000km range, potentially setting a new industry standard. 3️⃣ Leapmotor: The Partner Play Barely on the map a year ago, Leapmotor leveraged a strategic partnership with Stellantis to gain a foothold. They've since notched 1,539 sales in just H1 2025 and are planning over 700 locations by year-end. This partnership could pave the way for a limited-edition EV collaboration with a European luxury brand to build brand cachet. 4️⃣ Chery: The Unstoppable Force Absent from Europe until recently, Chery’s Omoda and Jaecoo brands have exceeded 47,000 European sales in H1 2025. They’re building for the long term, with a new factory in Spain set to open in 2025. The next marketing play? A high-profile European endorsement for the Jaecoo 9 SUV, proving they're serious about competing on a global stage. But Europe won't become "China 2.0." 🙅 With EU tariffs as high as 48%, how are these brands side-stepping the trade war? ❓Localizing to Neutralize: They are opening R&D and design centers in cities like Munich to create local jobs and dodge tariffs. ❓Building Trust: They are partnering with local champions like Bosch for ADAS and leveraging proven suppliers like CATL for batteries to build credibility. ❓Betting on Speed: While legacy brands like Volkswagen are bogged down by software delays, these companies are betting that operational speed and a rapid product cycle will beat brand heritage every time. ❓The bigger picture is clear: Chinese EV makers are venturing overseas, not just for sales, but to prove a new, more resilient global expansion model. 💬 Which European legacy automaker should be most affected?

70% of car buyers have a vehicle to trade-in. But the average dealer only captures 1 out of 3. So where do the other 2 go? The best trades don’t simply disappear. They are most often being lost to a direct competitor that isn’t risk-averse. Meanwhile, the two largest used-vehicle retailers in the world retail only about 3% of U.S. used-car sales, but they’re acquiring 13% of consumer-sourced trades — nearly 2 million units annually. That leaves roughly 13 million trades for the other 16,000+ rooftops in America to fight over. How do two retailers source 2 million cars directly from consumers every year? It isn’t magic. It’s process, consistency, and the decision to play offense instead of defense. The Fallacy of Look-to-Book Here’s the hard truth: most stores celebrate a “strong” Look-to-Book ratio. But that only measures how well you acquire the trades that make it to the desk. If you appraise 90 cars and buy 50, you’ll post a “55% Look-to-Book.” Managers celebrate. But zoom out: if the store sold 150 cars and only 50 had trades, that’s a 33% Trade Capture rate. Great Look-to-Book ratio, but still at the mercy of relying >50% on auctions to keep the used inventory pipeline full. The Study Behind the NumbersThis isn't a theory. It’s based on a proprietary analysis of 100,000+ appraisals across 11 dealer groups ranging from 9 to 35 rooftops each. We tracked appraisal-to-sale ratios (A2S), trade capture %, and missed-trade %. The results? Consistent across every rooftop, every market, every volume tier: the more you appraise, the more trades you win; and the fewer you lose to competitors. The Pain of Inaction If your store sells 150 cars per month: At 1:1 A2S (~38% capture), you win ~57 trades. At 2:1 A2S (~62% capture), you win ~93 trades. The variance = 36 trades per month. At a low ~$2,000 front/back gross per unit, that’s $72,000 a month or $864,000 annually left on the table. That’s not a rounding error. That’s the difference between a healthy used department and an auction dependency problem. Auction success feels like victory, until you realize you’re just overpaying for the cars you refused to appraise last month. The 3 Habits That Bleed Trade Acquisitions: Appraising the “serious” buyers while competitors put numbers on every car they possibly can. Your marketing department cannot retarget an in-market client that was never entered into the CRM or online trade tool. The A2S Doctrine (from our 100k+ appraisal study): 1:1 A2S (one appraisal per sale) → ~38% capture, ~22% missed trades. 2:1 A2S (two appraisals per sale) → ~62% capture, ~9% missed trades. It's not a theory. It's operational physics. High-volume appraising isn’t performing kind acts for the Salvation Army. It’s playing offense, rather than taking a defensive stance. It signals you actually want inventory. And it keeps you from paying $2,000 more at auction, for the same cars you could’ve owned sight-unseen. What’s the Solution? Cont'd...(click for full article) 👇

The underlying reason why German automakers struggle against China while the rest of Europe is celebrating. 😲 The German auto industry is watching their sales numbers drop in a free fall. Meanwhile, other European car brands are surging to new heights of their success: → Ferrari’s sales increased by 12.9% globally. → Skoda achieved a 26.3% increase in sales globally. → Rolls Royce grew by approximately 14.3% in global sales. → Land Rover reported a significant 93% record growth in sales. This highlights one key insight: Not the entire market is shifting. Ultra luxury buyers are still happy to spend large budgets on prestige products. Likewise, lower priced products can still get away with moderate software maturity if balanced with good design and a strong brand. But with lasting economic uncertainties around the world, two large groups of customers are rethinking their purchase decisions: 🙋🏻♂️ “𝗔𝘀𝗽𝗶𝗿𝗶𝗻𝗴 𝗕𝘂𝘆𝗲𝗿𝘀”, typically wealthy people but not super rich. → They previously bought expensive brand products for status. Now, they move to the “Aspirer Zone” buying products where they get more tangible value for their money. 🙅🏻♂️ “𝗩𝗼𝗹𝘂𝗺𝗲 𝗕𝘂𝘆𝗲𝗿𝘀”, typically people focused on conscious spending. → They previously bought mid-range products for superior perceived quality. Now, they move to the “Volume Zone” buying products that are much cheaper and similar or better in quality. Considering these insights, German automakers basically have three options to stay in the game: 💰 𝗟𝗼𝘄𝗲𝗿 𝘁𝗵𝗲 𝗽𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗽𝗿𝗶𝗰𝗲 → This is what VW is doing with their ID.One 🦾 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗺𝗮𝘁𝘂𝗿𝗶𝘁𝘆 → This is what Mercedes is doing with their MB.OS ✨ 𝗠𝗼𝘃𝗲 𝘁𝗼 𝘁𝗵𝗲 “𝗨𝗹𝘁𝗿𝗮 𝗟𝘂𝘅𝘂𝗿𝘆 𝗭𝗼𝗻𝗲” → This is what Jaguar with their new luxury vehicles All three can be valid strategies and can even be combined, but they all require completely different approaches. Once again, knowing your customers remains the key to competitive advantage. When automakers understand the motivation behind buying decisions, they can quickly adapt to the shifting customer needs. Which strategy makes the most sense for German OEMs?

Every dealer I talk to right now — large groups, single points, franchise and independent — is saying the same thing: Business is getting tougher. Margins are shrinking. Affordability is the biggest challenge on both new and used. For the first time in years, the market feels a lot like 2018 again… maybe tougher. Here’s what I’m seeing across the country: 🔹 Affordability has hit a ceiling. Interest rates, insurance, and high transaction prices have pushed payment-sensitive buyers to the limit. 🔹 New-car gross is tightening fast. Inventory is back, OEM programs are ramping up, and competition for qualified buyers is intense. 🔹 Used-car margins are compressed. Acquisition costs are high, negative equity is rising, and the fight for trades and consumer cars is fierce. 🔹 The “COVID gross era” is over. We’re back in a market where discipline, process, and leadership matter more than ever. But here’s something a lot of people aren’t talking about: We don’t just have an inventory or affordability problem. We have a people and training problem. And this is where strong operators pull ahead: ✔️ Salespeople need to be trained to prospect again. Many don’t even understand the word. They’ve never been taught how to build a book of business, make outbound calls, promote themselves on social media, or create their own opportunities. That skillset is becoming essential again. ✔️ Service advisors and techs need to be retrained on the basics. Proper multipoint inspections… reviewing recommended maintenance… adding lines and hours per RO… communicating value to the customer. The service lane is the heartbeat of the dealership — and it needs consistent coaching. ✔️ Sales managers need situational awareness. What’s happening on the lot, in the showroom, and in the digital showroom. Who’s aging. Who’s waiting. Who needs a follow-up. Managers can’t spend the whole day behind a desk anymore — they need to lead from the front. ✔️ Dealers must acquire aggressively from consumers. Service drive, equity mining, instant cash offer funnels — everything matters right now. ✔️ Recon must be tight, disciplined, and fast. Speed to market is non-negotiable. ✔️ Older, affordable inventory is critical. More customers are payment buyers. Sub-$20k retail is a must. ✔️ Expense control has to return to 2018 levels. The 2021–2022 expense model doesn’t work anymore. ✔️ Technology and AI are becoming competitive advantages. The dealers who adopt it first will win on efficiency, training, follow-up, and acquisition. The market has shifted — and it’s not shifting back anytime soon. This is the moment where real operators separate themselves. If you’re feeling the pressure, you’re not alone. And if you’re doubling down on fundamentals, training, and accountability, you’re already ahead.

If you don’t connect, you don’t close. I was in a room packed with sales professionals, talking about one simple idea: connect yourself to the prospect. Not the payment. Not the promotion. Not the pitch. The person. Here’s the reality in automotive sales today. Customers walk in armed with research. They’ve compared trims, watched reviews, checked incentives, and maybe even built the deal online. What they haven’t experienced yet is how you make them feel in that moment. And that’s where most deals are won or lost. I’ve seen talented salespeople lose opportunities not because they lacked product knowledge, but because they rushed the relationship. They went straight to numbers. Straight to features. Straight to closing. But the top performers in that same store? They slowed down. They asked better questions. They listened longer than was comfortable. They understood why the customer was buying, not just what they were buying. Connection builds trust. Trust lowers resistance. Lower resistance increases gross and improves CSI. It’s not complicated. It’s human. If you want your team to improve performance, train them to master connection before negotiation. Role-play real conversations. Coach managers to observe listening skills, not just closing techniques. Reinforce empathy as a sales discipline, not a personality trait. Because when your team truly connects with the prospect, price becomes part of the conversation, not the entire conversation. In today’s market, vehicles don’t differentiate you. Inventory doesn’t differentiate you. Connection does. The dealerships that train their teams to build authentic relationships will outperform those still relying on scripts and urgency. Connection isn’t soft. It’s strategic. And it’s one of the most profitable skills your team can develop.

In the history of the Automotive industry there aren't many people who actively sold as many cars as i have on a sales floor. That’s not to brag—it’s to share. If you’re serious about leveling up in this business, here are 10 things that helped me get to the top—and they can help you too. 1. Energy Sells Before You Speak Before I ever opened my mouth, people felt me. I didn’t bring stale, passive, “just-here-for-a-paycheck” energy. I brought fire, focus, and certainty. That’s what people respond to. Your presence sets the price tag for your value. 2. I Came to Serve—Not to Close I never sold from desperation. I didn’t need your sale—I needed you to feel seen, helped, and understood. And when people feel that, they buy. Not because you asked… but because they trust you. 3. My Referral Game Was Untouchable I didn’t just chase fresh leads—I built a machine that fed me business. I treated every customer like they were the only one in the world…and they returned the favor by sending me everyone they knew. 4. I Used Social Media Before Anyone Else Took It Seriously While others thought Facebook was a hobby, I made it a storefront. I posted every deal, every customer, every win. Attention equals money. And I wasn’t afraid to show the world how hard I worked. 5. I Shared My Secrets. That’s Why I Got Better. You want to grow fast? Teach what you know. I taught other salespeople everything I did. Most people hoard knowledge. I gave it away. And it forced me to stay ahead of the game. Teaching is the ultimate accelerator. 6. My Work Ethic Was Relentless No shortcuts. No off days. No excuses. I showed up when others stayed home. Not because I had to—but because I loved it. This wasn’t a job—it was my craft. My art. My obsession. 7. I Trained Every Day—Even When I Was Winning 30 minutes. Every single day. I didn’t need training. I demanded it. Because when you know your stuff, pressure disappears—and confidence takes its place. 8. I Made People Feel Like a Million Bucks You want people to buy? Make them feel seen. I didn’t wing it—I had the skills to make people feel understood and important. That only comes from mastery—not guessing. 9. I Treated This Like a Legacy, Not a Job This wasn’t about commission checks. This was about becoming a legend in my field. And legends don’t clock in. They show up to conquer. 10. I Was the Managers’ Best Ally I knew who controlled the backend—the desk, the approvals, the heat. While others disrespected the chain of command, I added value. I helped them win… and they made sure I always did too. Bottom line: You can’t touch these kinds of numbers unless you touch this mindset. And most people never will—because they’re not willing to become the person it takes to dominate this game. But if you’re done being average… If you’re ready to go from selling cars to becoming a name people talk about… Start here. Pick one. Master it. Then stack the rest. I didn’t get here by accident. I got here by decision. Your move.

Sales Manager: "I need you guys to go out and sell some cars." Salesperson: "Hmm? That's what we're doing here?" 🙄 Snide remarks aside, the salesperson has a point. "We need to sell more cars!" isn't a strategy any more than gambling is planning for retirement. Unfortunately, this scenario plays out at dealerships every single day. We have all heard about "sales velocity" for years, but sales velocity happens when you have the right car for your market at a compelling price. If you focus on "appraisal velocity" rather than sales velocity, you will sell many more cars. Appraisal velocity is increasing your appraisal numbers massively. Why should you commit to this? Greater appraisal velocity will improve sales and your bottom line. Period. Dealers who appraise more cars have… #1 Increased sales. Data shows that sales closing ratios are up to 3 times higher with an appraisal. #2 Higher gross profits. When a trade-in is involved, the front-end gross profit increases by $300-$1,000. #3 Better follow-up conversion. If you don't do an appraisal, a sales associate's only option is the dreaded sales follow-up call on an unsold lead.  Salespeople hate doing these because the "prospective customer" has no interest in speaking to them. And the success rate on these calls is abysmal. With an appraisal, your salespeople are in a much better position to convert with follow-up. #4 Reduced acquisition costs of used car inventory. On average, acquiring vehicles through appraisals costs $1,730 less than buying from auctions — savings that go straight to your bottom line. Dealers who appraise 80% of the cars owned by people who come in for service repair or walk into the showroom looking to buy will NEVER have to buy another vehicle at auction. Dealers, it's time to think differently. Forget sales velocity. Appraisal velocity is the key to success. If you want to sell more cars, appraise more cars. #AccuTrade