BYD Dethrones Tesla as World’s Leading EV Maker, Ships Over 2.2 Million Units in 2025

China’s BYD has officially surpassed Tesla to become the world’s top EV manufacturer by sales volume, and not by a small margin. BYD’s global EV sales surged nearly 28 percent year-on-year to 2,254,714 units sold, while Tesla reported a 9 percent decline, coming in at 1,636,129 units sold for the year. That’s a difference of 618,585 units, or an almost 38 percent higher number for BYD. 

The Chinese giant also sold an additional 2,288,709 plug-in hybrid vehicles, for a total of 4,550,036 units. Sales outside of its home country topped one million units for the first time. In addition to BYD models, it also sells cars under the brands Yangwang, Fangchengbao and Denza. In December 2025, BYD reported that it had produced its 15 millionth new-energy vehicle.

The news comes after both companies released their calendar year 2025 sales reports. By late November 2025, industry watchers were reporting that it looked extremely unlikely that US-based Tesla would retain its top spot this year, based on monthly and quarterly reports. 

BYD has been aggressive with pricing and expansion into new markets around the world, taking advantage of Chinese government subsidies. Its biggest export markets are Asia, Europe, and Latin America. On the other hand, Tesla has declined in several regions due to its ageing lineup, the elimination of a tax credit to incentivise EV purchases in the US, shifting focus to robotaxis and autonomous driving, and negative consumer sentiment towards CEO Elon Musk’s right-wing political activism. 

Tesla launched in India in 2025 after years of delays and stalled plans, but has reportedly received only lukewarm response to the Model Y, its only model on sale here. BYD has been selling passenger vehicles in India since 2022, but initially entered the electric bus market here in 2013. Neither company has a manufacturing plant in India, although BYD has proposed to set up EV and battery production facilities, pending government approvals. 

China is a huge market for Tesla, which launched the exclusive Model Y L and Model 3 Long Range there in 2025 to keep up with competition. BYD has not yet entered the US market, as Chinese cars have been blocked by government policy. Earlier this week, Musk claimed that the Tesla Model Y was once again the world's best-selling car model, though multiple analysts have cast doubt on this, instead predicting that the Toyota RAV4 will be the clear winner once data is compiled.

Interestingly, both the Tesla Model Y and BYD Sealion 7 were named winners in the 2026 Luxury Midsize SUV category, in a rare tie at the 2026 ACKO Drive Awards.