January 6, 2026 – Kathmandu
Chinese automaker BYD has overtaken Tesla to become the world’s leading electric vehicle (EV) seller, marking a significant shift in the global EV market. BYD sold approximately 2.26 million electric vehicles in 2025, surpassing Tesla’s roughly 1.64 million deliveries for the year.
BYD’s growth is attributed to its competitive pricing strategy and rapid international expansion. Strong domestic demand in China, coupled with growing exports to Europe, Latin America, and Southeast Asia, fueled a 28% increase in annual EV sales for the company. BYD has also expanded production capacity abroad, including a newly opened plant in Brazil, to support rising global demand.
In contrast, Tesla faced a decline in annual deliveries of 8–9%, marking the second consecutive year of falling sales. Analysts point to several factors affecting Tesla’s performance, including the expiration of U.S. federal EV tax incentives and intensifying competition from Chinese and European EV manufacturers.
Industry experts say BYD’s rise reflects the growing influence of Chinese EV manufacturers in the global market. Its diverse model lineup and cost-effective vehicles have allowed the company to capture market share from established players. Meanwhile, Tesla continues to focus on technological innovation, particularly in autonomous driving and artificial intelligence, despite recent challenges in sustaining EV demand.
The 2025 sales results signal a turning point in the EV sector, highlighting both the increasing acceptance of a wider range of EV brands and the intensifying global competition for leadership in electric mobility.
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