China's BYD set to overtake Tesla as world's top EV seller on annual sales

China's BYD is set to beat Tesla in global EV sales in 2025, driven by strong China demand and rising overseas sales, even as competition intensifies in key markets

Chinese automaker BYD is on track to surpass US-based Tesla in global electric vehicle (EV) sales for the first time on a calendar-year basis. This would make BYD the world’s largest EV seller, Nikkei Asia reported.

 

BYD said on Thursday that its electric vehicle sales rose 28 per cent in 2025 to 2.25 million units. Tesla has not yet announced its full-year numbers, but earlier this week it shared a market estimate showing an 8 per cent fall in sales to 1.64 million units.

 

In 2024, Tesla narrowly held the top position, selling just over 20,000 more vehicles than BYD. This year, however, the Chinese automaker appears to have pulled ahead by a wide margin.

Strong domestic base and global push

 

BYD’s growth has been driven by strong demand in China and rising sales overseas. Its electric vehicle sales in 2025 were 150 per cent higher than in 2022. As the global sales leader, the company can benefit from large-scale production, helping it cut costs and stay price competitive, the news report said.

 

BYD’s total new-vehicle sales increased 8 per cent in 2025 to 4.6 million units, marking its fifth straight year of growth. In 2024, it overtook Japan’s Honda Motor and Nissan Motor in annual sales.  ALSO READ: BYD outsells Tesla for fourth straight quarter despite sales dip 

Passenger vehicles make up more than 90 per cent of BYD’s sales. Of these, electric vehicles accounted for 2.25 million units, while plug-in hybrid sales declined 8 per cent to 2.28 million units.

Overseas expansion gathers pace

 

International sales saw strong growth, led by Europe and supported by expansion in Latin America and Southeast Asia. BYD also started operations at its Brazil plant in 2025 as part of its push for local manufacturing.

 

At its Thailand facility, the company plans to supply electric vehicles to the domestic market and export vehicles to Europe.

Pressure builds despite growth

 

In China, BYD boosted demand in February by adding advanced driver-assistance features to more than 20 models without increasing prices.

 

Still, challenges remain. Monthly data shows sales fell year-on-year in September for the first time in 19 months. December deliveries dropped 18 per cent to 420,000 units, marking the fourth consecutive month of decline, the news report said.

 

Competition in China is also heating up, with established players like Geely and new entrants such as Xiaomi adding pressure that could affect BYD’s future sales.

ALSO READ: BYD outsells Tesla for fourth straight quarter despite sales dip