China’s BYD reports weakest sales growth but will likely edge out Tesla as top EV seller

BYD met its slashed sales target in 2025 with 4.6 million vehicle deliveries, even as the Chinese carmaker’s sales growth slowed to 7.7%, its weakest pace in five years—yet the result will likely keep Tesla from claiming the world’s top electric vehicle (EV) seller spot for the year.

BYD initially targeted 5.5 million vehicle sales for 2025 in March, though the number has been downgraded multiple times in recent months, people familiar with the matter reportedly said.

Its December sales fell 18.3% from a year earlier, marking its fourth straight monthly decline and its largest monthly drop in nearly two years, according to data in a stock filing on Thursday.

BYD founder, chairman and CEO Wang Chuanfu said at an investor conference in December that the 2025 sales slowdown in China was due to the company’s weakening technological leadership, adding that it plans to introduce major innovations this year, Reuters reported, citing Chinese media outlet Southern Metropolis Daily.

This year, the Shenzhen-based carmaker and its rivals also face growing pressure as China scales back some incentives supporting EV purchases, according to Bloomberg.

Still, BYD is likely to overtake Tesla as the top EV seller for the year, as analysts expect the US carmaker’s fourth-quarter sales to fall to 449,000 vehicles, bringing its total for the year to 1.65 million.

BYD delivered 1.05 million vehicles outside China in 2025, which exceeded expectations and helped offset domestic sales pressure. For 2026, the company aims to export between 1.5 million and 1.6 million vehicles. /TISG

Read also: China’s BYD on track to export a million vehicles in 2025

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