Chinese automaker BYD has surpassed Tesla in full-year electric vehicle sales for the first time in 2025, emerging as the world’s largest seller of electric vehicles.
The shift in global market leadership follows a difficult year for the American manufacturer, which recorded its first-ever decline in annual deliveries, while its Chinese rival posted strong growth in its electric vehicle segment.
Tesla delivered 1.63 million vehicles in 2025, an 8.6 per cent year-on-year decline. The fall marked a significant change for a company that had dominated global electric vehicle sales for several years. Annual production also declined by 6.7 per cent to 1.73 million units compared to 2024, as competition intensified from global rivals including Hyundai and BYD.
In contrast, BYD reported total vehicle deliveries of 4.6 million units in 2025, representing a 7.7 per cent increase from the previous year. Of this, electric vehicle sales rose 28 per cent to 2.25 million units, strengthening the company’s position in the global EV market.
Industry analysts attribute the rapid rise of Chinese electric vehicle manufacturers to strong production capabilities and integrated supply chains. Cui Dongshu, secretary-general of the China Passenger Car Association, said Chinese manufacturers continue to invest heavily in research and development, accelerate technological advancement, and build complete industrial chains supported by China’s manufacturing base, domestic market and policy framework.
The report also noted that Tesla’s gigafactory operations in China remain critical to meeting delivery targets amid rising competition. Chinese manufacturers, however, continue to benefit from expanding industrial ecosystems and integrated manufacturing bases.
Looking ahead, industry observers expect Chinese electric vehicle makers to maintain their competitive advantage in global deliveries as their supply chains and industrial capacity continue to expand.
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