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BYD Overtakes Tesla in EV Sales Amidst Market Challenges
1 Jan
Summary
- BYD likely surpassed Tesla to become the world's largest EV maker in 2025.
- Overseas sales for BYD surged to 1.05 million units in 2025.
- Chinese EV market faces challenges due to scaled-back incentives and competition.
BYD Co. has likely achieved the significant milestone of becoming the world's largest electric vehicle maker in 2025, potentially surpassing Tesla. The Chinese automotive giant delivered 4.6 million units last year, meeting its adjusted full-year sales target. Despite this success, the company and its domestic rivals are bracing for a tougher year ahead.
Challenges loom in 2026 as China scales back incentives crucial for EV purchases. Intensified domestic competition from rivals like Geely and Xiaomi, coupled with rising trade barriers for international expansion, present significant hurdles. BYD's CEO acknowledges a diminished technological lead, though he remains confident in the company's engineering prowess.
A notable bright spot for BYD is its booming overseas market, with 1.05 million units sold outside China in 2025. The company aims to further boost this to 1.5 million to 1.6 million units in 2026. Analysts anticipate BYD's total sales to reach 5.3 million units next year, suggesting it may navigate the evolving market landscape more effectively than competitors.
