Chinese automobile giant BYD is edging closer to surpassing Tesla, headed by Elon Musk, to claim the position of the world’s largest electric vehicle manufacturer.
The company has successfully met its annual sales target, reflecting strong performance throughout the year.
As per Bloomberg, BYD’s shares listed in Hong Kong gained as much as 2.3 percent on the first trading day of the year.
Achieving this amid a highly competitive and challenging Chinese auto market highlights BYD’s growing strength and market momentum.
Record deliveries, strong sales growth
BYD delivered a total of 4.6 million vehicles in 2025, marking a 7.7 percent increase compared to the previous year. This delivery figure aligns with the company’s revised annual target announced in September.
Notably, BYD recorded nearly equal sales of fully electric vehicles and plug-in hybrid models, highlighting the brand’s balanced product strategy and its growing acceptance among customers across global markets.
BYD could face More Pressure in China
Looking ahead, BYD could face increasing pressure as the Chinese government continues to gradually scale back incentives on EV purchases.
The company is also dealing with intense competition in its home market from rivals such as Geely and Xiaomi.
Despite these challenges, BYD’s overseas performance has remained strong. In 2025, deliveries outside China reached around 1.005 million units, helping the company offset slower growth in the domestic market and maintain overall sales momentum.
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BYD benefits from Tesla’s slowdown
BYD is gaining an advantage from Tesla’s current slowdown. The American EV maker is facing multiple challenges, and according to Bloomberg estimates, Tesla’s annual sales could fall to around 1.6 million units.
Factors such as production adjustments, the withdrawal of subsidies, and controversies surrounding CEO Elon Musk have impacted consumer demand.
Analysts believe that with the launch of new technologies and models, BYD is well positioned to strengthen its lead further by 2026.
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