BYD Overtakes Tesla to Become World's Largest EV Maker in 2025

Chinese automaker BYD has surpassed American competitor Tesla to become the world's largest manufacturer of battery-electric vehicles for the full year 2025, according to company disclosures and sales data.

Sales Performance

BYD

BYD reported sales of approximately 2.25 million to 2.26 million all-electric vehicles in 2025—a year-over-year increase of roughly 28%. This figure includes 2,254,714 BEVs as reported by the company.

BYD's total vehicle sales across all categories—including both BEVs and plug-in hybrid electric vehicles (PHEVs)—reached over 4.6 million units. Of these:

• BEVs accounted for slightly less than half of total sales (49.6%).
• PHEVs accounted for 50.4% of sales, with 2,288,709 units sold.

PHEV sales decreased by 7.9% compared to 2024.

BYD's total 2025 sales were approximately 7% higher than the 4,250,370 vehicles sold in 2024 but fell short of the company's publicly stated target of 5.5 million vehicles by 897,564 units (16.32%). This represents BYD's slowest annual growth rate in five years.

Tesla

Tesla delivered 1,636,129 to 1.64 million vehicles globally in 2025—a decline of approximately 8.6% to 9% from its 2024 figures. This marks Tesla's second consecutive year of declining sales and the largest annual decline in the company's history.

In the fourth quarter of 2025, Tesla reported sales of approximately 418,000 units, a 15.6% decrease from the same period in 2024. This followed a decline from record global sales reported in the third quarter, prior to the expiration of a $7,500 U.S. federal tax credit on October 1.

Tesla's annual sales growth, which had previously approached 50% per year, first declined by 1% in 2024.

Market Dynamics

Factors Affecting Tesla

• Tesla introduced lower-priced versions of its Model 3 and Model Y in the U.S. in October, priced approximately $5,000 less than premium versions but with reduced range and fewer features.
• Elon Musk's compensation agreement, approved by shareholders in November, is linked to increases in Tesla's sales and stock market valuation over ten years, and includes a condition for selling one million humanoid robots within that timeframe.
• Tesla has invested heavily in its "Optimus" robot project and "Robotaxi" self-driving technology. The robotaxi service has been deployed in Austin, Texas, and San Francisco.
• Tesla's sales in the first half of 2025 declined. Increased competition from other EV manufacturers, including BYD and established global automakers, was cited as a factor.
• Public opposition to Musk's political activities was cited as a factor affecting potential buyers in American and European markets. Protests occurred outside Tesla showrooms in Europe and the United States, with reports of vandalism against Tesla vehicles and properties, during a period when Musk held a position within the U.S. government's Department of Government Efficiency.
• Analysts noted Tesla's reliance on a concentrated product lineup, with the Model Y and Model 3 comprising a significant portion of sales, and the absence of new, more affordable platform vehicles.

Factors Affecting BYD

• BYD achieved its sales milestone despite significant competition and price reductions in its domestic market, China.
• BYD's market share in China decreased from a peak of 35% in 2023 to 29% in the first 11 months of 2025.
• During the same period, BYD's domestic sales declined by more than 5%, while competitor Geely's sales increased by nearly 90%.
• BYD reported profit declines during the second and third quarters of 2025.
• At a December investor meeting, BYD founder and CEO Wang Chuanfu attributed the domestic sales slowdown to an erosion of BYD's technological lead and insufficient product differentiation.
• BYD's EVs are not available for purchase in the United States.

International Expansion

BYD achieved a record 1,046,083 vehicle exports in 2025—the first time the company has exported over one million vehicles in a single year. This represented a 150% increase from the prior year.

BYD has expanded into regions including Latin America, Southeast Asia, and parts of Europe, despite automotive tariffs imposed by various countries on Chinese EVs. As of October, BYD identified the UK as its largest market outside China, reporting an 880% increase in sales there through September, driven by demand for its Seal U plug-in hybrid SUV.

The export total included the first vehicle from BYD's premium Denza brand, shipped to Australia following its late 2025 launch. As of November 2025, BYD was the second-highest-selling Chinese brand in Australia and eighth overall.

Broader Market Context

Chinese Automotive Market

China is projected to become the world's leading car manufacturing nation in 2025, surpassing Japan for the first time.

The Chinese market remains highly competitive, with approximately 150 car brands and over 50 EV manufacturers. Among the top five Chinese brands, Geely and Leapmotor were the only two that met or exceeded their sales targets for 2025:

• Geely sold 3,024,567 vehicles, surpassing its revised target of 3 million.
• Leapmotor achieved 596,555 sales, exceeding its 500,000 target.

Chinese automotive brands faced challenges including automotive tariffs in European and U.S. markets, increased domestic price competition, and stricter regulatory oversight. Government intervention addressed practices involving 'zero mileage' cars, where some automakers reportedly sold vehicles domestically before re-exporting them due to oversupply.

2026 Beijing Auto Show

The 2026 Beijing Auto Show featured 1,451 vehicles across 380,000 square meters at two venues, making it the largest auto show globally. Chinese automakers displayed EVs across all price segments. Notable absentees included Tesla, Jaguar, Land Rover, Maserati, Subaru, and Chevrolet. Battery manufacturers had large exhibits, with CATL showcasing a battery charging from 10% to 98% in six minutes.

Stock Performance

Shares of Tesla (TSLA) rose by 1.2% in early trading on Friday and concluded 2025 with an 18.6% annual increase.