Chinese EV giant BYD experienced a sales growth slowdown to 7.7% in 2025, the slowest in five years. Monthly sales dropped by 18.3% in December. Despite this, BYD is set to surpass Tesla in annual battery electric vehicle sales. Tesla faced consumer distaste and subsidy cuts, affecting its 2025 sales.

BYD’s stock rose by 3.6% in Hong Kong trading, though it lagged behind Tesla’s 18.6% growth. China’s car market is cutthroat, with manufacturers slashing prices for market share. The oversupply of EVs in China is expected to halve the growth rate in 2026. Chinese car companies are looking to expand overseas.

BYD leads in Southeast Asia, outperforming Toyota in Singapore. It is also eyeing the European market, with a new factory in Hungary producing 150,000 all-electric sedans annually. BYD plans to expand in Thailand, Indonesia, and Brazil. Tesla’s sales struggles are attributed to consumer distaste and subsidy cuts.

Read more at Yahoo Finance: BYD posts slowest annual sales growth in 5 years, but China’s EV giant is still set to outsell Tesla for the first time