Chinese automaker BYD has officially overtaken Tesla to become the world’s biggest electric vehicle (EV) manufacturer, marking a major shift in the global EV market. This is the first time BYD has surpassed Tesla in annual EV sales, underscoring the growing dominance of Chinese manufacturers in the clean energy transition.
According to Tesla’s fourth-quarter report released on Friday, the US-based EV giant delivered around 1.64 million vehicles in 2025, representing a decline of nearly 9 percent compared to the previous year. This marked the second consecutive annual drop in Tesla’s delivery numbers, raising concerns among investors about slowing demand and intensifying competition.
In contrast, BYD sold approximately 2.26 million battery-powered electric vehicles in 2025, comfortably surpassing Tesla’s figures, CGTN reported on Saturday. The strong performance was largely driven by a surge in demand for BYD’s fully electric models, with battery-powered vehicle sales jumping nearly 28 percent year-on-year.
BYD, which manufactures both electric vehicles and internal combustion engine (ICE) cars, reported overall growth of 7.73 percent in total new car deliveries. However, analysts note that the company’s EV segment remains the primary engine of expansion, supported by competitive pricing, a diverse product lineup, and strong domestic demand in China.
A key factor behind BYD’s rise has been its aggressive overseas expansion strategy. Despite facing steep US tariffs, the automaker made significant inroads into Europe, Southeast Asia, and the Middle East. In 2025, BYD sold a record-breaking one million vehicles outside China, representing a remarkable 150 percent increase compared to the previous year.
As global competition intensifies, BYD’s milestone signals a changing balance of power in the EV industry, with Chinese manufacturers increasingly setting the pace for innovation, scale, and affordability worldwide.