BYD has overtaken Tesla as the world’s largest seller of battery electric vehicles in 2025, according to reporting by The Guardian and Car and Driver. Tesla’s annual deliveries fell and EV growth cooled from earlier expectations.
The Guardian reports BYD sold 2.26 million battery electric vehicles in 2025, outpacing Tesla’s 1.63 million deliveries for the year. Car and Driver similarly puts BYD’s 2025 EV sales at “over 2 million,” with Tesla delivering 1.64 million vehicles worldwide, down nine per cent year-over-year.
Both outlets pointed to policy and demand headwinds weighing on Tesla. For example,The Guardian tied the downturn to U.S. President Donald Trump’s withdrawal of EV subsidies and emissions regulations that encouraged EV production. And Car and Driver noted that Tesla’s fourth-quarter U.S. performance was affected by the elimination of federal EV incentives, even after lower-priced versions of the Model 3 and Model Y were introduced in the fall.
BYD’s growth, meanwhile, is being driven by scale and product breadth. Car and Driver underlined that BYD’s total 2025 vehicle sales rose 7.7 per cent to 4.6 million, supported by a 28 per cent rise in EV sales, with “just under half” of its global volume electrified. The Guardian added that BYD is including driver-assistance technology called “God’s Eye” even on its cheapest models.
The bigger picture is that a BYD-led EV market increases pricing and feature pressure across the board. It also signals more aggressive competition as Chinese automakers expand exports. Canadian dealers can expect OEMs to push harder on incentive strategy, value positioning and tech content to protect share as a result.
