China’s electric vehicle champion BYD is on course to overtake Tesla as the world’s biggest seller of battery-electric cars, marking a symbolic shift in the global EV race.
The Shenzhen-based group said annual sales of its battery-powered vehicles jumped by almost 28 per cent last year to more than 2.25 million units. By contrast, Tesla is expected to report full-year sales of around 1.65 million vehicles when it releases its 2025 figures later on Friday, based on analysts’ forecasts published last week.
If confirmed, it would be the first time BYD has overtaken its American rival on an annual basis, underlining the rapid rise of Chinese manufacturers in a market long dominated by Western brands.
The milestone caps a difficult year for Tesla, which has grappled with a lukewarm reception to newer models, intensifying competition from lower-priced Chinese rivals and growing unease among some consumers and investors over the political activities of its chief executive, Elon Musk.
Chinese carmakers including BYD, Geely and MG have steadily eroded Tesla’s market share by offering well-specified electric cars at significantly lower prices. In response, Tesla launched cheaper versions of its two best-selling models in the US in October in a bid to reignite demand.
Sales at Tesla slumped in the first quarter of 2025 after a backlash linked to Musk’s role in President Donald Trump’s administration, prompting concerns that his focus was being stretched across too many ventures. Musk later pledged to “significantly” scale back his government involvement.
Despite fierce competition in its home market, which slowed BYD’s sales growth to the weakest pace in five years, the company continues to expand aggressively overseas. It has gained traction across Latin America, South East Asia and parts of Europe, even as governments impose tariffs on Chinese-made EVs.
In October, BYD said the UK had become its largest market outside China, with sales surging 880 per cent year-on-year to the end of September. Demand has been driven in part by the plug-in hybrid version of its Seal U SUV, which has resonated with British buyers seeking lower-emission vehicles without full range anxiety.
While Tesla remains one of the world’s most valuable carmakers, its lead in the electric vehicle market is narrowing as rivals catch up on technology, scale and pricing. For BYD, overtaking Tesla would cement its status as the world’s leading EV producer — and highlight how decisively China has reshaped the global automotive industry.
The question now is whether Tesla can regain momentum through new products such as its Optimus humanoid robot and self-driving “robotaxi” ambitions, or whether BYD’s cost advantage and manufacturing scale will keep it firmly in the lead.
