China-based automaker BYD is on track to surpass Tesla as the world’s biggest electric vehicle seller in 2025, according to a report from the BBC. If confirmed, it would mark the first time the Chinese manufacturer has exceeded its US rival in annual battery-electric vehicle sales.
BYD announced on Thursday that sales of its fully electric cars climbed by nearly 28% last year, reaching more than 2.25 million units.
Tesla, meanwhile, is expected to release its full-year 2025 sales figures today. However, analyst estimates referenced by the BBC suggest the company will report deliveries of roughly 1.65 million vehicles for the year.
The BBC highlighted several factors weighing on Tesla’s performance, including intensifying competition from Chinese manufacturers and a lukewarm response to some of its newer models. Investor concerns surrounding Elon Musk’s political involvement and his broader commitments outside the carmaker were also cited.
Chinese automakers such as BYD, Geely, and MG have been applying increasing pricing pressure on established brands by offering more affordable alternatives in key global markets. In response, Tesla has introduced lower-cost versions of its two top-selling models in the US in an effort to stimulate demand.
In October, AM Online reported that Tesla continued to lose market share across Europe, while brands like BYD and MG were experiencing rapid expansion. Data from the European Automobile Manufacturers Association (ACEA) covering the EU, EFTA, and the UK showed a significant decline in Tesla’s registrations during 2025.
From January through October, Tesla registered 180,688 vehicles, representing a 29.6% drop from 256,495 over the same period a year earlier. This decline reduced its market share from 2.4% to 1.6%. Over that same timeframe, BYD’s registrations surged from 35,949 to 138,390 units, reflecting growth of 285%.
Despite BYD’s strong momentum, the BBC noted that the company’s overall sales growth in 2025 was its slowest in five years, largely due to intense competition within the Chinese market. Even so, aggressive pricing strategies and rapid international expansion have continued to bolster its global standing.
The BBC also reported that BYD has been making a major push into overseas markets, including Europe, Southeast Asia, and Latin America, even as certain countries move to impose tariffs on Chinese-made EVs.
In October, BYD said the UK had emerged as its largest market outside China. Sales in Britain rose sharply year-on-year through the end of September, driven in part by strong demand for the plug-in hybrid Seal U SUV.
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