Chinese automaker BYD has officially overtaken Tesla to become the world's largest electric vehicle (EV) manufacturer, according to 2025 sales data released on Friday. This historic shift marks the first time BYD has claimed the top spot in annual EV sales, driven by a 28% surge in battery-powered vehicle deliveries and aggressive overseas expansion.
Tesla reported 1.64 million deliveries in 2025, a 9% decline from the previous year, while BYD sold 2.26 million fully electric vehicles. The Shenzhen-based company also saw a 7.73% overall increase in total vehicle sales, bolstered by its dual focus on EVs and hybrid models.
BYD's global strategy has proven pivotal, with overseas sales reaching a record 1 million units in 2025—a 150% year-on-year increase. Key markets include Europe, Southeast Asia, and the Middle East, where the company continues to expand despite geopolitical trade challenges.
Analysts attribute BYD's success to its vertically integrated supply chain and competitive pricing, factors that have reshaped Asia's automotive landscape and intensified competition in renewable transportation markets worldwide.
