BYD overtakes Tesla to become the leader in electric car sales

In 2025, the global market for new energy vehicles set another record. According to the analytics company TrendForce, total sales reached 20.53 million vehicles.

These statistics include fully electric vehicles (BEVs), plug-in hybrids (PHEVs), and hydrogen fuel cell models. Compared to 2024, the market grew by 26%.

China remains the leading market for electric vehicles

China remains the largest electric vehicle market. In 2025, it accounted for approximately 66% of all global sales. However, the growth rate was 24%, slightly below the global average.

In Western Europe, the market showed one of its best results in recent years. Electric vehicle sales in the region grew by almost 30%, the highest figure since 2022.

One of the main events of the year was the change in global market leadership. Chinese automaker BYD has surpassed Tesla in all-electric vehicle sales for the first time.

BYD’s sales increased by 25% year-over-year. Tesla, by contrast, saw a decline of approximately 9%. Analysts attribute this to the company’s long history of not releasing sufficiently new or significantly updated models to maintain buyer interest.

Chinese Brands Strengthen Their Positions

Other Chinese automakers are also actively expanding their presence in the global market. Geely rose to fourth place in the global ranking. Its market share increased from 3% to 6%.

The affordable Xingyuan model, priced at less than 100,000 yuan (approximately €11,800), played a significant role in this growth.

Technology companies also continue to enter the automotive market. For example, Xiaomi increased its market share from 1% to 3% in a year. This allowed the brand to take eighth place in the global ranking of electric vehicle manufacturers.

The situation is more complicated for Volkswagen. Despite overall sales growth, the company has lost ground in the Chinese market. In response, the company launched a new brand targeting buyers in China and began collaborating with XPeng to jointly develop new models.

The Hybrid Segment and Plans for 2026

In the plug-in hybrid segment, BYD maintains its leadership with a share of approximately 31.5%. However, even this manufacturer has experienced a decline in sales for the first time.

Li Auto is facing a challenging year in 2025, with sales falling by approximately 30%. As a result, the brand dropped from second to fifth place in the hybrid vehicle rankings. To address this, the company is investing in artificial intelligence technologies and the development of in-car software features.

One of the reasons for the slowdown is said to be the saturation of the Chinese market. In recent years, China has been the main driver of global demand for electric vehicles.

Subsidies are changing, cars are becoming more complex

In 2026, government support rules for electric vehicles will change in various countries. In China, subsidies will no longer be a fixed amount; they will now be calculated as a percentage of the vehicle’s price. This could reduce the appeal of the most affordable models.

In the US, federal subsidies for the purchase of electric vehicles have been completely eliminated. At the same time, Germany has decided to reinstate state support, with no restrictions on the country of vehicle production. This opens up additional opportunities for Chinese manufacturers.

At the same time, cars themselves are becoming technologically more complex. Modern electric vehicles are effectively turning into “computers on wheels” and require a large number of microchips, including memory chips, which are in short supply. Although such components account for only 1-5% of a vehicle’s cost, their shortage can lead to production delays.

Therefore, automakers are striving to strengthen their supply chains for electronic components and ensure regular software updates for their vehicles.