BYD posts robust growth in car sales as it takes on Tesla globally
Chinese electric vehicle champion BYD has reported a 60% surge in sales in the first quarter of the year as archrival Tesla stumbles.
The EV maker based in the southern Chinese megacity of Shenzhen sold just over one million new-energy vehicles in the first three months of 2025 – including battery-powered cars, hybrids and commercial vehicles – according to a CNN calculation based on its latest stock exchange filing. Its sales of pure EVs soared 39% to more than 416,000 units.
BYD has been on a roll. Just last week, it reported a record annual revenue of $107 billion last year. By contrast, Tesla’s 2024 revenue was $97.7 billion, and its annual deliveries declined for the first time last year by 1.1%.
The vast majority of BYD’s shipments last year were delivered to domestic customers with just 10% exported to overseas markets. As a result, investors and analysts are bullish on BYD’s growth potential as the automaker advances in markets like Europe, Southeast Asia and South America.
In Europe, where BYD is making inroads and building two manufacturing plants, Tesla is struggling with slumping sales. In February, Tesla’s sales there plunged around 40% from the same month in 2024, according to the European Automobile Manufacturers’ Association.
Last week, Wang Chuanfu, BYD’s founder and CEO, pledged to boost total shipments by nearly 30% this year and nearly double its overseas deliveries to more than 800,000 vehicles, according to state media.
BYD has unveiled a series of eye-catching innovations in the first quarter. Last month, it introduced a revolutionary battery charging technology that it says adds 250 miles of range in five minutes – surpassing Tesla’s Superchargers, which take 15 minutes to add 200 miles. In February, BYD launched an advanced driver-assistance system that rivals Tesla’s Full Self-Driving feature, offering it at no extra cost for most of its models.
Autonomous driving technology is in focus in China this week after Xiaomi’s popular EV sportscar was involved in a deadly highway crash over the weekend, sparking online debate in the country about the safety of these systems.
Xiaomi, a tech company known for its smartphones, said in an online statement that its intelligent driving assistance system was engaged before the crash, which killed three people. It vowed to fully cooperate with a police investigation. CNN has reached out to Xiaomi for comment.
Overseas expansion
As for BYD, even though its passenger vehicles have yet to enter the US market due to 100% tariffs on Chinese EVs, it is emerging as a formidable challenger to the once-dominant Tesla, particularly in China, the world’s largest auto market.
In the first two months of this year in China, BYD’s new-energy passenger car sales surged by 25%, cementing its lead with 27% of the market share, according to figures from the China Passenger Car Association. Tesla’s passenger car sales, by contrast, tumbled 14%, ranking just sixth with a 4% share of the market.
Last month, BYD’s Executive Vice President Stella Li told a German auto publisher that the EV maker is exploring building a third plant, after ones in Hungary and Turkey.
But the company’s overseas expansion drive does come with its own challenges, as it continues to run into problems like brand recognition and trade barriers, according to Shaochen Wang, a research analyst at Counterpoint Research, a market analysis firm.
In Tesla’s home market, Elon Musk’s controversial government role, marked by mass layoffs in the public sector as head of the Department of Government Efficiency, has cooled Tesla sales. While demand for used EVs is rising, prices for used Teslas are plummeting.
Musk’s government job has triggered a wave of backlash, including vandalism targeting Tesla showrooms, charging stations and vehicles across the US, as well as peaceful protests at Tesla sites overseas.
Consolidation ahead
After years of cut-throat competition in China’s automobile industry, major car brands appear to be consolidating. Dongfeng Motor and Changan Automobile, two of the country’s largest carmakers and joint venture partners of Ford and Nissan in China, are reportedly in advanced merger talks, according to The New York Times, citing unnamed sources.
In February, each company announced separately that it was in discussions with other state-owned enterprises regarding potential restructuring, according to Chinese state media. If completed, the merger could create China’s largest carmaker and the world’s fifth largest.
Shaochen Wang said China’s automobile market is too crowded and has too many domestic brands. Many are expected to exit as research and development costs put a strain on carmakers.
“The Dongfeng-Changan merger is primarily aimed at seeking more efficient use of state-owned assets as market competition continues to intensify,” he said.
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