BYD is now China’s largest electric car company
China’s BYD is set to overtake Tesla as the world’s biggest seller of electric vehicles, marking a major shift in the global EV market.
It is the first time the Chinese carmaker has outpaced its US rival on annual sales, underlining the growing pressure on Western manufacturers.
BYD said sales of its battery-powered cars rose by almost 28% last year to more than 2.25 million vehicles.
Tesla is due to publish its full 2025 sales figures later on January 2. Analysts’ estimates released last week suggest it sold around 1.65 million vehicles across the year.
The US firm has endured a difficult year, shaped by a mixed response to new models, unease over Elon Musk’s political activities and rising competition from Chinese rivals.
Carmakers such as Geely, MG and BYD have intensified pressure on Western brands by pricing electric vehicles below established competitors.
BYD is now China’s largest electric car company and has been a key driver of the country’s rapid EV expansion.
In October, Tesla launched lower-priced versions of its two best-selling models in the US in an effort to revive demand.
Musk, already the world’s richest man, faces the task of sharply increasing Tesla’s sales and market value over the next decade.
That push is central to a record-breaking pay package approved by shareholders in November, potentially worth up to £740 billion.
Under the deal, Musk must also sell one million humanoid robots over the next ten years.
Tesla has invested heavily in its “Optimus” robot and its self-driving “Robotaxi” technology as part of that strategy.
Tesla sales fell in the first three months of 2025 following a backlash against Musk’s role in US President Donald Trump’s administration.
Beyond Tesla, Musk controls several major ventures, including social media platform X, rocket company SpaceX and tunnel firm the Boring Company.
Those responsibilities, alongside running Trump’s Department of Government Efficiency, led some investors to question his focus on Tesla.
Musk has since pledged to “significantly” reduce his involvement in the US government.
Despite BYD’s rapid rise, its sales growth slowed in 2025 to the weakest rate in five years.
The slowdown was partly driven by fierce competition within China, which remains the company’s most important market.
Even so, BYD continues to undercut many rivals on price and remains a dominant global EV player.
The Shenzhen-based firm has expanded aggressively in Latin America, South East Asia and parts of Europe.
That growth has continued despite several countries imposing steep tariffs on Chinese electric vehicles.
In October, BYD said the UK had become its largest market outside China.
The company reported that UK sales surged by 880% in the year to the end of September.
It said growth was fuelled by strong demand for the plug-in hybrid version of its Seal U SUV.
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