BYD Achieves 2025 Sales Target, Likely Overtaking Tesla Amid Slowing Growth and Domestic Competition

The Chinese automotive giant, BYD, successfully concluded the 2025 fiscal year by meeting its revised annual sales objective. This achievement strongly positions the company to claim the global lead in electric vehicle deliveries, potentially displacing Tesla from the top spot. BYD reported total deliveries reaching 4.6 million units for 2025. This figure aligns precisely with the adjusted goal set in September of that year, following an earlier downward revision from an initial projection of 5.5 million vehicles. While this result signifies a 7.7% increase over the 4,250,370 vehicles sold in 2024, it also marks the slowest growth rate BYD has experienced in the last five years.

A pivotal element in BYD's success story was its robust international expansion, which yielded significant dividends. Overseas shipments soared to a record high of 1,046,083 units, representing an astonishing 150.7% surge compared to the figures from 2024. This substantial boost in sales outside of mainland China proved crucial in offsetting mounting pressures within the domestic market. For context, industry analysts anticipate that Tesla, which is contending with its second consecutive year of declining sales, will report deliveries of approximately 1.65 million electric vehicles for 2025, leaving it considerably behind BYD's total.

Looking ahead, BYD is clearly committed to escalating its export activities, targeting shipments between 1.5 million and 1.6 million units for 2026, underscoring a deliberate strategic pivot toward global marketplaces. This ascent to the pinnacle of the worldwide EV market arrives concurrently with intensifying rivalry within China's borders and an acknowledgment from the company that its technological edge has narrowed. BYD CEO Wang Chuanfu conceded in December 2025 that the significant technological gap the company once enjoyed had diminished. Domestically, BYD is feeling the heat from formidable local rivals, including Geely Automobile Holdings Ltd. and Xiaomi Corp., particularly within the highly competitive budget vehicle segments.

The landscape for 2026 presents new hurdles, as manufacturers anticipate a tapering off of government incentives, including the phased introduction of a purchase tax. This is projected to cause a contraction in the overall volume of electric vehicle sales across China. Despite these headwinds, analysts remain generally optimistic about BYD's trajectory, forecasting that the company's total sales could reach 5.3 million units in 2026. This projection hinges on the anticipated success of upcoming product launches and the unveiling of a new technological platform, both of which the company hopes will help recapture its competitive advantage.

Examining the granular statistics from 2025 reveals further insights into consumer preferences. Sales of Battery Electric Vehicles (BEVs) climbed by 27.9%, reaching 2.25 million units. Conversely, sales of Plug-in Hybrid Electric Vehicles (PHEVs) experienced a downturn, dropping by 7.9%. This shift indicates an accelerated consumer preference for fully electric models, as BEVs now account for 49.6% of BYD's total annual sales, up from 41.5% recorded in 2024. It is worth noting that in December 2025 alone, BYD's overall sales dipped by 18.3% year-over-year, marking the fourth consecutive month of decline.