Chinese automaker BYD overtook Tesla in global electric vehicle sales in 2025, becoming the world’s largest EV seller for the first time, according to a report by the Global Times.
The change in market leadership comes after a challenging year for the U.S. manufacturer, which posted its first-ever annual decline in vehicle deliveries, while its Chinese rival recorded strong growth in its electric vehicle business.
The report said Tesla delivered 1.63 million vehicles in 2025, an 8.6 percent drop from the previous year. The decline marked a notable reversal for a company that had long led the global EV market. Tesla’s annual production also fell by 6.7 percent to 1.73 million units, intensifying competition with rivals including BYD and Hyundai.
BYD, meanwhile, reported total vehicle deliveries of 4.6 million units in 2025, up 7.7 percent from 2024. Of that total, electric vehicle sales rose 28 percent year on year to 2.25 million units, according to the company’s annual report cited by the Global Times.
Industry observers attributed the shift to the growing competitiveness of Chinese new-energy vehicle manufacturers. Cui Dongshu, secretary-general of the China Passenger Car Association, said these companies continue to increase investment in research and development, accelerate technological progress, and build comprehensive industrial chains supported by China’s advanced manufacturing base, strong domestic market, infrastructure, and supportive policies.
The report also noted that Tesla relies on its China-based gigafactory to meet delivery targets, underscoring the importance of the country’s manufacturing ecosystem. Analysts expect Chinese EV makers to maintain their advantage in vehicle deliveries as their supply chains and industrial capabilities continue to expand.
