China's top electric vehicle maker BYD gained market share as the world's largest auto market recorded its fastest-growing month in 2024, setting BYD up to exceed its global annual sales goal and overtake Ford and Honda.

BYD has been on an extraordinary expansion this year, growing capacity and undertaking a massive hiring spree to turbocharge revenue that surpassed EV leader Tesla in the third quarter.

Aided by robust sales in China, BYD is on course to top its annual sales target of 4 million vehicles, which would put it ahead of Japan's Honda and Detroit-based Ford for 2024. The Chinese electric vehicle giant delivered 3.76 million vehicles in the first 11 months this year including 506,804 units sold in November.

Bolstered by strong sales led by a competitive lineup of models with its latest plug-in hybrid technology, BYD gained ground over rivals as China's car sales grew in November at their fastest from a year earlier since January, thanks to government-subsidised auto trade-ins.

The number of subsidised car trade-ins totalled more than 4 million as of Nov. 18, according to official data. Without such trade-ins, year-to-date car sales may have contracted versus a 4.4 percent increase for the January-November period, according to Reuters analysis based on industry numbers.

As of last month, BYD's share of the Chinese auto market, which makes up more than 90 percent of its total sales, stood at 17.1 percent, up from 12.5 percent in 2023, according to data from the China Passenger Car Association (CPCA).

The stacked bar shows new energy vehicle sales and sales of other fuel car types in China.

In comparison, Volkswagen's two joint ventures with SAIC and FAW Group took a combined 11 percent market share in the January-November period, compared with 14.2 percent last year.

If that sales momentum continues, BYD could sell more than 6 million units in the next 12 months, which would put it on par with the world's leading automaker groups such as General Motors and Stellantis, according to Reuters estimates based on the automakers' existing sales.

The Chinese firm aims to deliver 5 million to 6 million cars in 2025, Citi analysts said in a recent note after a meeting with the automaker's management.

BYD did not respond to a request for comment.

During August to October, the automaker added nearly 200,000 units in production capacity and hired 200,000 workers for auto and parts manufacturing, an executive said in November.

The total number of BYD employees was close to one million as of September, up from around 703,500 at the end of 2023.

Its efforts to boost scale have helped it outpace rivals in growth, better control costs and win a brutal price war in China that has squeezed many foreign automakers. BYD has also asked dozens of its suppliers for price cuts, according to a recent state-owned media report.

In the latest sign of foreign car makers' deepening woes in China, GM said last week it would take more than $5 billion in charges on its China operation due to restructuring and the declining value of its joint venture, which has suffered losses and decreasing sales.