BYD Overtakes Tesla as World’s Largest Electric Carmaker in 2025

Chinese automaker posts 2.26 million all-electric sales as Tesla’s deliveries slide for a second straight year

China’s BYD has overtaken Tesla to become the world’s largest seller of fully electric cars in 2025, widening its lead at a moment when global competition and shifting government incentives are reshaping the EV market.

A BYD car showroom in a shopping mall in Shenzhen

BYD said it sold 2,256,714 battery-electric passenger vehicles in 2025, up nearly 28% from a year earlier—putting it ahead of Tesla’s 1,636,129 vehicle deliveries for the same period. Tesla reported fourth-quarter deliveries of 418,227 vehicles, a weaker finish that helped seal BYD’s first full-year lead over the U.S. company in all-electric volume.

The milestone is symbolic as well as commercial. While BYD had previously surpassed Tesla in some quarters, 2025 marked the first time it sustained the advantage across an entire year, underscoring the growing scale—and global ambition—of China’s EV champions.

Beyond its all-electric tally, BYD’s broader “new energy vehicle” (NEV) business—battery electrics plus plug-in hybrids—reached 4,602,436 units in 2025. Plug-in hybrid passenger sales totaled 2,288,709, down about 8%, while commercial NEV sales rose sharply to 57,013 vehicles. Overseas sales were a standout: BYD reported 1,046,083 NEVs sold outside China in 2025, a jump of more than 150% year on year.

Tesla’s yearly decline adds to mounting questions about whether it can stabilize its core car business as rivals expand lineups and compete aggressively on price. U.S. media have cited factors including the expiration of some U.S. EV tax incentives late in 2025 and intensifying competition in major markets.

The changing leaderboard comes as the broader market continues to grow. Reuters cited estimates that global EV sales rose 28% in 2025, with BYD helped by rapid growth in Europe where it has been widening its lead over Tesla.

For investors and industry watchers, BYD’s rise highlights two converging trends: China’s manufacturing scale is pushing EV prices down globally, and the competitive battle is increasingly being won on cost, distribution, and the speed of model rollouts—not just brand power.