China's BYD has widened its sales lead over Tesla in Singapore in the first half of this year, as indicated by government data. This development underscores the competitive challenge Tesla faces from Chinese electric vehicle (EV) makers. BYD's strong growth in Singapore, one of Southeast Asia's smaller auto markets, reflects its broader ambitions to dominate the regional market, where traditional gasoline car brands from Japan and South Korea are currently popular.

BYD has already seen early success in Southeast Asia, notably marking Thailand as its largest overseas market and expanding its distribution partnerships with local conglomerates. In contrast, Tesla has not yet established a significant presence in the region.

Tesla recently reported its lowest profit margin in over five years and missed Wall Street earnings targets for the second quarter, impacted by mounting price competition and a global slowdown in EV demand. On the other hand, BYD posted a 21% rise in second-quarter sales and continues its aggressive international expansion, including opening its first stores in Vietnam this week.

In Singapore, BYD has ramped up its marketing efforts, including opening two themed restaurants where consumers can dine on dishes inspired by its car models and book a test drive. These efforts have paid off, with BYD's EV sales in Singapore jumping 83% in the first half of this year to 2,587 units, compared to the entire 2023 level. Tesla, meanwhile, sold only 28 more cars during the same period than last year, putting 969 Teslas on Singapore's roads.