Chinese automaker BYD has overtaken Tesla to become the world’s largest electric vehicle manufacturer in 2025, delivering a total of 2.26 million vehicles, representing a nearly 28 percent increase compared to 2024. This milestone not only highlights BYD’s rapid expansion but also marks a historic shift in the global electric vehicle market, as Tesla, long considered the industry leader, delivered 1.64 million vehicles in the same period, reflecting an 8 percent decline and its second consecutive annual drop in sales.
BYD’s surge in sales is attributed to its strong performance in both domestic and international markets. In China, the company benefited from increased consumer adoption of electric vehicles, supportive government policies, and a growing network of charging infrastructure. The company has also successfully expanded overseas, including into Europe, Latin America, and Southeast Asia, attracting buyers with competitively priced models and innovative technology. BYD’s diverse EV lineup, including passenger cars, SUVs, and commercial electric vehicles, has helped it capture a wider range of consumers compared to Tesla, which relies heavily on a smaller set of premium models.
Tesla’s decline is linked to multiple challenges, including rising competition from established automakers and new EV entrants, ongoing geopolitical and political controversies, and the gradual phase-out of the US electric vehicle tax credit, which had previously boosted its domestic sales. Analysts suggest that Tesla’s dependence on premium pricing, combined with global supply chain pressures, has limited its ability to maintain year-on-year growth in a rapidly evolving market.
Industry experts say BYD’s overtaking of Tesla signals a significant transition in the global EV industry, with Chinese manufacturers gaining influence and reshaping the competitive landscape. This trend reflects not only technological advancement and production scale but also a shift in consumer preferences toward more affordable and practical electric vehicles. As governments worldwide push for greener transportation policies, BYD’s momentum suggests that China’s EV brands may continue to expand their presence globally, challenging traditional leaders like Tesla and driving innovation in the sector.
