Chinese EV maker BYD ended 2025 as the world’s largest seller of electric vehicles, overtaking American EV giant Tesla. Specifically, BYD EVs outsold those of Tesla by a hefty margin of nearly 38 percent globally.
- BYD delivered over 2.25 million EVs and 2.28 million plug-in hybrids worldwide in 2025
- Tesla sold around 1.64 million units globally, a 9 percent decline from 2024
BYD takes pole position in global EV sales in 2025
Over 2.25 million EVs sold
BYD sold more than 2.25 million all-electric vehicles in 2025, a nearly 28 percent year-on-year (YoY) increase, while Tesla is estimated to have delivered around 1.64 million EVs, down 9 percent. This is also the second consecutive annual decline in sales for Tesla, with the company shedding 1.1 percent in volume in 2024.
The difference between BYD and Tesla’s 2025 volumes is over 6,10,000 units. Investors welcomed this result, with BYD’s Hong Kong-listed shares rising as much as 2.3 percent. On the other hand, Tesla’s stock declined by 2.6 percent on January 2 at market close.
How are BYD and Tesla EVs faring in India?
In India, Tesla made its long-awaited entry in July 2025 with only the Model Y, and that too within the homologation-free CBU cap of 2,500 units. BYD has operated in India’s passenger vehicle market for over four years and currently sells four CBU models: the Atto 3, eMax 7, Seal and Sealion 7. It’s worth noting that the government put a damper on BYD’s plans to manufacture EVs in India.
Despite the hurdles BYD faces, our EV sales data for 2025 shows that the company ranked fifth on the sales charts, selling 5,402 units in India and recording a whopping 88 percent year-on-year growth. Tesla, meanwhile, has delivered 225 units of the Model Y, slotting in at 12th place.
Why BYD pulled ahead of Tesla
Depending on the market, BYD has a broad model portfolio spanning a slew of price points and body styles. It also doesn’t rely solely on all-electric cars, offering plug-in hybrids for buyers concerned about affordability and charging infrastructure. In fact, BYD sold over 2.28 million plug-in hybrids in 2025 – more than EVs – pushing its total worldwide shipments to over 4.5 million, a 7.7 percent increase over the previous year.
In contrast, Tesla remains heavily dependent on pure EVs and an ageing line-up – the Model S and X are over a decade old, the Model 3 is over eight years old, and the Model Y is nearly six years old. The removal of federal tax credits – benefits of up to $7,500 (Rs 6.77 lakh) – for EV buyers in the US further hampered demand, and there are also the reputational challenges linked to Tesla CEO Elon Musk’s political rhetoric.
To further put BYD’s victory into perspective, the Chinese EV maker is blocked from selling passenger vehicles in the US, but Tesla operates in China and even manufactures EVs there.
Saptarshi Mondal
Hormazd Sorabjee
Dinshaw Magol
