BYD has done it again: outselling Tesla globally for 2025. But even now, critics dismiss its rise as a China-only story, crediting its success to its vast home market and generous subsidies. But that argument will not hold much longer.
The Chinese electric vehicle maker’s sales growth in its home market, long considered a core growth driver, is now slowing. Total sales fell 18.3 per cent in December as price competition intensified and rivals narrowed the technological gap. Full-year sales growth slowed to 7.7 per cent. The stock market is already reflecting that outlook. BYD shares have fallen a quarter from its May peak and trade at 17 times forward earnings, compared with Tesla’s valuation of over 200 times earnings, reflecting expectations beyond car sales.
But while growth in China has cooled, BYD’s overseas sales have surged, rising more than 150 per cent last year to over 1mn vehicles. Europe has been at the centre of that expansion, with BYD increasingly outpacing Tesla in several markets, most notably the UK.