China’s electric car giant BYD is on track to overtake Tesla as the world’s largest seller of battery-powered vehicles, marking a symbolic shift in the global EV race.
The Shenzhen-based group said annual sales of battery-powered vehicles fell nearly 28 percent last year to more than 2.25 million units. In contrast, Tesla is expected to report full-year sales of about 1.65 million vehicles when it releases its 2025 figures later on Friday, based on analysts’ forecasts published last week.
If confirmed, it will be the first time that BYD has surpassed its American rival every year, underscoring the rapid growth of Chinese manufacturers in a market long dominated by Western brands.
The milestone caps a difficult year for Tesla, which has faced a lukewarm reception to new models, intensifying competition from low-cost Chinese rivals and growing unease among some buyers and investors over the political activities of its chief executive, Elon Musk.
Chinese automakers including BYD, Geely and MG have chipped away at Tesla’s market share by offering well-specced electric cars at much lower prices. In response, Tesla introduced cheaper versions of its two best-selling models in the US in October in an attempt to revive demand.
Tesla’s sales fell in the first quarter of 2025 after a backlash linked to Musk’s role in President Donald Trump’s administration, raising concerns that he was focusing on too many businesses. Musk later promised to “significantly” reduce his involvement in government.
Despite fierce competition in the domestic market, which has slowed BYD’s sales growth to its weakest pace in five years, the company continues to grow strongly overseas. It has gained momentum across Latin America, Southeast Asia and parts of Europe, as governments impose tariffs on Chinese-made EVs.
In October, BYD said the UK had become its biggest market outside of China, with sales up 880 percent year-on-year to the end of September. Demand is being driven in part by a plug-in hybrid version of its Seal U SUV, which has struck a chord with British buyers looking for low-emission vehicles without the full range of worries.
While Tesla remains one of the world’s most important automakers, its lead in the electric car market is shrinking as rivals catch up on technology, scale and pricing. For BYD, surpassing Tesla will cement its position as the world’s leading EV manufacturer – and highlight how China has reshaped the global auto industry.
The question now is whether Tesla can regain momentum with new products like its Optimus humanoid robot and self-driving “robotaxi” ambitions, or whether BYD’s cost advantage and manufacturing scale will keep it ahead.
