China’s BYD overtakes Tesla as world’s largest electric car seller

The Chinese carmaker sold more battery-electric vehicles than its US rival in 2025 for the first time, as European and global markets tilt further towards lower-priced Chinese EVs

China’s BYD has overtaken Tesla to become the world’s largest seller of electric vehicles, marking a shift in the balance of the global EV market as Chinese manufacturers expand rapidly in Europe and other overseas regions.

BYD said sales of its battery-electric cars rose by almost 28 per cent in 2025 to more than 2.25 million vehicles. Tesla reported global sales of 1.64 million vehicles for the year, a fall of nearly 9 per cent and its second consecutive annual decline.

The figures place BYD ahead of Tesla in annual EV sales for the first time, although the U.S company remains more profitable in recent quarters.

Tesla’s sales fell sharply in the final quarter of 2025, dropping 16 per cent year on year. The company cited weaker demand following the repeal of a US government subsidy that had reduced the purchase price of certain electric and plug-in hybrid vehicles by up to $7,500 (£5,570).

The decline comes amid intensifying competition from Chinese manufacturers, whose vehicles are often priced below established Western brands. Companies including Geely, MG and BYD have gained market share by targeting price-sensitive buyers across Europe, south-east Asia and Latin America.

In response, Tesla introduced lower-priced versions of its two best-selling models in the U.S in October in an effort to stimulate demand.

Despite its global lead in volume, BYD’s growth rate slowed in 2025 to its weakest pace in five years, reflecting intense price competition in China, its largest market. Even so, the company continues to expand overseas despite the introduction of tariffs on Chinese-made electric vehicles in the European Union and other jurisdictions.

BYD said in October that the UK had become its largest market outside China. The company reported an 880 per cent increase in UK sales in the year to the end of September, driven largely by demand for the plug-in hybrid version of its Seal U sports utility vehicle.

Tesla, led by chief executive Elon Musk, has faced a challenging year marked by slower vehicle sales, mixed reception to new products and investor concerns over Musk’s political activities and competing business interests. Musk has since stepped back from his role in the U.S government.

Analysts have lowered Tesla sales forecasts for 2026, although the company has continued to promote future growth from autonomous driving technology, robotaxis and its humanoid robot programme.

READ MORE: ‘Chinese carmaker GAC to launch electric cars in Britain’. As electric car sales surge and the 2030 petrol ban looms, Chinese giant GAC is entering the UK market with two high-tech models, promising premium features and competitive pricing aimed at shaking up Britain’s fast-growing EV sector.

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