Chinese electric vehicle champion BYD has reported a substantial 60% increase in car sales for the first quarter of 2025, marking a significant contrast to the performance of its main competitor, Tesla.
The Shenzhen-based EV manufacturer sold just over one million new-energy vehicles in the first three months of the year, encompassing battery-powered cars, hybrid vehicles, and commercial vehicles. Within this total, sales of purely electric vehicles jumped by an impressive 39%, reaching over 416,000 units.
This robust growth follows BYD’s recent announcement of record annual revenue of $107 billion for the previous year.
In comparison, Tesla’s 2024 revenue was $97.7 billion, and its annual vehicle deliveries experienced a slight downturn of 1.1% for the first time.
While the vast majority (90%) of BYD’s shipments in the past year were within the domestic Chinese market, the company is actively pursuing expansion into overseas markets, including Europe, Southeast Asia, and South America. This international drive is fuelling optimism among investors and analysts regarding BYD’s potential for continued growth.
In Europe, where BYD is establishing a foothold and planning to build two manufacturing plants, Tesla is encountering slumping sales figures.
Data from the European Automobile Manufacturers’ Association revealed a significant year-over-year drop of approximately 40% in Tesla’s European sales for February.
BYD’s CEO, Wang Chuanfu, has publicly stated ambitious targets for 2025, aiming for a nearly 30% increase in total shipments and a near doubling of overseas deliveries to exceed 800,000 vehicles.
BYD has also been showcasing notable technological advancements in the first quarter, including a new battery charging technology that purportedly adds 250 miles of driving range in just five minutes, surpassing the charging speed of Tesla’s Supercharger network.
Additionally, the company launched an advanced driver-assistance system, positioned as a rival to Tesla’s Full Self-Driving feature, and is offering it as a standard inclusion in most of its vehicle models.
The safety of such autonomous driving technologies is currently a subject of public discussion in China following a recent fatal accident involving an EV from Xiaomi, another tech company entering the automotive market.
Despite facing significant 100% tariffs on Chinese EVs that currently prevent its passenger vehicles from entering the US market, BYD is increasingly emerging as a strong competitor to the previously dominant Tesla, particularly within China, which remains the world’s largest auto market.
In the first two months of 2025, BYD’s sales of new-energy passenger cars in China surged by 25%, solidifying its market leadership with a 27% share, according to figures from the China Passenger Car Association.
Conversely, Tesla’s passenger car sales in China declined by 14% during the same period, placing them sixth with a 4% market share.
BYD is reportedly exploring the possibility of establishing a third overseas manufacturing facility, adding to its existing plans in Hungary and Turkey.
However, the company’s international expansion efforts are encountering challenges related to brand recognition and existing trade barriers.
Meanwhile, in Tesla’s domestic US market, CEO Elon Musk’s controversial involvement in government, which has included widespread public sector layoffs in his role as head of the Department of Government Efficiency, is reported to have negatively impacted Tesla’s sales.
While the demand for used electric vehicles is on the rise, the prices of used Teslas are falling.
Musk’s government position has also triggered public backlash, including vandalism targeting Tesla showrooms, charging stations, and vehicles across the US, as well as peaceful protests at Tesla locations in other countries.
