In January 2026, what many had seen coming for months was confirmed: BYD officially surpassed Tesla as the world's largest seller of 100% electric vehicles. And it wasn't close: the Chinese company sold 618,585 more electric vehicles than Tesla throughout 2025.
But BYD's story is much more than numbers. It's the story of Wang Chuanfu, an orphan who with $400,000 borrowed founded what is now a $117 billion revenue empire. It's the story of how Warren Buffett multiplied his investment by 25x. And it's the story of how China is winning the electric vehicle race.
In this complete analysis, we tell you everything you need to know about BYD: why they're so cheap, which models are worth considering, and whether they can really keep the throne they snatched from Tesla.
BYD vs Tesla: The Numbers That Change Everything
Before diving into details, let's look at the hard data from 2025:
| Metric | BYD | Tesla | Difference |
|---|---|---|---|
| Pure electric vehicles (BEV) | 2,254,714 | 1,636,129 | +618,585 (+38%) |
| Total vehicles (BEV + hybrids) | 4,550,036 | 1,636,129 | +2,913,907 |
| Annual growth | +27.9% | -9% | -- |
| Global market share | 15.7% | ~11% | -- |
The number that hurts Tesla most: while BYD grew almost 28%, Tesla dropped 9%. It's the first time Tesla has recorded a decline in annual sales.
The Historic Milestone
May 2025 marked a before and after: for the first time, BYD surpassed Tesla in registrations in Europe (7,231 vs 7,165). The territory Tesla considered its stronghold after the United States.
And the trend continues. In January 2026, BYD's international sales exceeded 1 million units for the first time in its history, a 150% growth from the previous year.
Wang Chuanfu: From Orphan to Billionaire
BYD's story is inseparable from that of its founder, Wang Chuanfu.
Born in 1966 in a poor village in Anhui province, Wang was orphaned as a teenager. He grew up raised by his older siblings, who sacrificed so he could study.
The Road to Success
- 1987: Graduates in Metallurgical Chemistry from Central South University
- 1990: Completes his Master's in Materials at Beijing General Research Institute
- 1995: With $400,000 borrowed from his cousin, founds BYD as a rechargeable battery manufacturer
- 2003: Buys Xi'an Tsinchuan Auto Company and enters the car business
- 2008: Warren Buffett invests $230 million in BYD
- 2024: BYD becomes China's largest car manufacturer
- 2025: BYD dethrones Tesla as global EV leader
What Charlie Munger Said About Him
Legendary investor Charlie Munger, Warren Buffett's partner, met Wang in 2008 and was so impressed he convinced Buffett to invest. His famous description:
"This guy is a combination of Thomas Edison and Jack Welch."
Warren Buffett wanted to buy 25% of BYD, but Wang rejected the offer. He only agreed to sell 10%. That refusal to give up control of his company was, according to Buffett, "a good sign."
Buffett's $230 million became $5.9 billion by 2020. A 25x multiplication.
Why BYD Is So Cheap: Vertical Integration
The question everyone asks: how can BYD sell electric cars so cheap without sacrificing quality?
The answer has a name: vertical integration.
BYD Makes EVERYTHING In-House
Unlike most manufacturers who buy components from third parties, BYD produces almost everything internally:
| Component | Manufactured by |
|---|---|
| Batteries | FinDreams Battery (BYD subsidiary) |
| Semiconductors (IGBT, SiC) | BYD Semiconductor |
| Electric motors | FinDreams Powertrain |
| Power electronics | BYD Semiconductor |
| Seats | Internal production |
| Lighting | Internal production |
The Numbers Behind the Advantage
| Model | % Internal components |
|---|---|
| BYD Seal | 75% |
| Tesla Model 3 (China) | 46% |
| Comparable VW electric | 33% |
Result: BYD can produce a car 35% cheaper than Volkswagen for a comparable model.
The Chip Crisis Test
During the semiconductor crisis of 2021-2022, when Ford and GM were stopping production lines due to chip shortages, BYD was one of the only manufacturers that INCREASED production.
Why? Because they make their own chips.
The Blade Battery: BYD's Revolution
At the heart of BYD cars is their Blade Battery, a technology they developed in-house that gives them a significant advantage.
Technical Specifications
| Feature | Blade Battery |
|---|---|
| Chemistry | LFP (Lithium-Iron-Phosphate) |
| Life cycles | +5,000 charge/discharge cycles |
| Space efficiency | +50% vs conventional LFP |
| Safety | No oxygen release |
| Materials | No cobalt or nickel |
Why LFP Matters
Most manufacturers use NMC batteries (Nickel-Manganese-Cobalt). BYD chose LFP for several reasons:
Advantages:
- Cheaper: No cobalt or nickel (expensive and controversial materials)
- Safer: Doesn't catch fire even in nail penetration tests
- Longer lasting: +5,000 cycles vs ~1,500 for NMC
Disadvantages:
- Lower energy density: Requires larger batteries for same range
- Worse cold weather performance: CEO Wang publicly acknowledged this "pain point"
The Blade Battery 2.0 (2025) improves density to 210 Wh/kg and reduces costs another 15%.
BYD Models: Which One to Choose?
BYD has a huge portfolio, but these are the most relevant models for European and Latin American markets:
BYD Dolphin: The Best Seller
| Specification | Value |
|---|---|
| Segment | Compact hatchback |
| Battery | 60.5 kWh (Blade Battery) |
| WLTP Range | 265 miles (427 km) |
| Power | 150 kW (201 hp) |
| 0-62 mph | 7.0 seconds |
| Price UK | From £26,995 |
| V2L | Yes (3.3 kW discharge) |
Ideal for: Urban drivers looking for a compact, affordable EV with good range.
BYD Seal: The Model 3 Rival
| Specification | BYD Seal | Tesla Model 3 |
|---|---|---|
| Base price UK | £45,695 | £39,990 |
| Power (base) | 308 hp | 283 hp |
| 0-62 (Performance) | 3.8 s | 2.9 s |
| Base range | 354 mi (570 km) | 323 mi (520 km) |
| HUD | Yes, holographic | No |
| Apple CarPlay | Yes | No |
| Screen | 15.6" rotating | 15.4" fixed |
Verdict: The Seal offers more standard equipment and greater range. The Model 3 has better acceleration and Supercharger network. Technical tie.
BYD Atto 3: Family SUV
| Specification | Value |
|---|---|
| Segment | C-SUV crossover |
| Battery | 60.48 kWh |
| WLTP Range | 261 miles (420 km) |
| Power | 150 kW (204 hp) |
| Euro NCAP | 5 stars |
| Cargo | 47.2 cu ft (1,338 L) |
| Price UK | £35,116 - £39,705 |
Ideal for: Families looking for a spacious electric SUV at a competitive price.
BYD Han L and Tang L: The Premium Range (2025)
The new Han L (sedan) and Tang L (7-seat SUV) are BYD's answer to the premium segment:
| Specification | Han L / Tang L |
|---|---|
| Battery | Up to 100 kWh |
| CLTC Range | Up to 435 miles (701 km) |
| AWD Power | 1,086 hp |
| 0-62 mph | 2.7 s (Han L) / 3.6 s (Tang L) |
| Ultra-fast charging | 1,000 kW (250 mi in 5 min) |
| Price China | ~$30,000-40,000 |
| Price Europe | Pre-order €72,000 |
The European price is significantly higher due to tariffs, but remains competitive with equivalent BMW and Mercedes models.
BYD's Global Expansion
BYD isn't content with dominating China. Their expansion strategy is aggressive:
Hungary Factory (2026)
| Data | Detail |
|---|---|
| Location | Szeged, southern Hungary |
| Investment | €4-5 billion |
| Initial capacity | 150,000 vehicles/year |
| 2030 capacity | 300,000 vehicles/year |
| Production start | Q2 2026 |
| First model | Dolphin Mini (Seagull) |
This factory will allow BYD to avoid European tariffs of 27% and compete head-to-head with local manufacturers.
Brazil Factory (Operational)
BYD is already producing in Camaçari, Bahia, with capacity of 150,000 vehicles annually. The first "Made in Brazil" BYD Dolphin Mini rolled off the line on July 1, 2025.
Result: 7 out of 10 electric cars sold in Brazil are BYD.
Latin America: The Silent Domination
| Country | BYD Position |
|---|---|
| Brazil | #1 in EVs |
| Argentina | #1 in EVs |
| Colombia | #1 in EVs |
| Ecuador | #1 in EVs |
| Uruguay | #1 in EVs |
| Mexico | Growing (40,000 units in 2024) |
While Tesla is just opening stores in Chile, BYD already dominates the rest of the continent.
Tariffs: The Barrier BYD Is Dodging
BYD's expansion isn't without obstacles. Western governments have imposed significant barriers:
United States: Excluded
| Tariff | Percentage |
|---|---|
| Pre-May 2024 | 25% |
| May 2024 | 100% |
| Legislative proposal | 125% total |
With 100% tariffs, BYD is effectively excluded from the US market. For now.
Europe: 27% Tariff
| Manufacturer | Additional tariff | Total (with 10% base) |
|---|---|---|
| BYD | 17.0% | 27.0% |
| Geely | 19.9% | 29.9% |
| MG/SAIC | 35.3% | 45.3% |
BYD received the lowest tariff among investigated Chinese manufacturers because it fully cooperated with the EU's anti-subsidy investigation.
The Evasion Strategy
BYD has a clear plan to dodge tariffs:
- Local factories: Hungary (EU), Turkey (customs union with EU), Brazil (Mercosur)
- Plug-in hybrids: PHEVs aren't subject to EV anti-subsidy tariffs
- Result: BYD hybrid sales in Europe grew +17,000% in H1 2025
BYD's Problems: Not Everything Is Perfect
It would be irresponsible to paint BYD as the perfect company. There are real problems:
After-Sales Service: The Achilles Heel
Owner reviews on Reddit, Trustpilot, and specialized forums reveal recurring issues:
"My car was in the shop for 2 months waiting for a light. China sent the wrong part. I still can't drive."
"I've had a BYD Dolphin for 18 months. It never charged properly, and last week it stopped charging completely."
Reported problems:
- 2+ month delays for spare parts
- Cars arriving with damaged paint
- Software problems and screen freezing
- Premature rust on some models (BYD Qin Plus)
BYD's Response
CEO Wang Chuanfu publicly acknowledged the "unresolved pain points," especially slow charging performance in cold temperatures. BYD is investing in improving their service network in Europe, doubling sales points from 1,000 to 2,000 by 2026.
Recalls
In October 2025, BYD recalled 115,783 vehicles due to component problems and improperly installed battery seals. A significant number, but smaller than recalls from other manufacturers relative to sales volume.
BYD vs Chinese Competition
BYD isn't the only Chinese EV company. How do they compare?
| Manufacturer | 2025 Sales | Growth | Strategy |
|---|---|---|---|
| BYD | 4,550,036 | +7.7% | Massive volume, vertical integration |
| XPeng | 429,445 | +126% | Autonomous driving, proprietary chips |
| Li Auto | 406,343 | -19% | Premium hybrid SUVs |
| NIO | 326,028 | +47% | Premium, battery swap |
Why BYD Leads
- Scale: Sells 10x more than the next Chinese competitor
- Diversification: BEV + PHEV (competition only does one or the other)
- Price: Much more accessible than NIO/XPeng/Li Auto
- Complete portfolio: Models in ALL segments
- International: Already exporting 1M+ vehicles, competition just starting
Is BYD Worth Buying?
After analyzing all the data, here's our verdict:
Reasons to Buy BYD
- Exceptional value for money
- Superior battery technology (Blade Battery)
- Competitive range with Tesla
- Generous standard equipment
- Apple CarPlay/Android Auto (Tesla doesn't have it)
- 5-year warranty in most markets
Reasons to Wait
- Immature service network in Europe
- Spare parts availability can be slow
- Uncertain resale value (new brand in the West)
- Tariffs raise prices in Europe
Our Recommendation
If you live in Latin America: BYD is probably your best option. The service network is more developed, prices are competitive, and they dominate the market.
If you live in Europe: The BYD Dolphin offers the best value. For the premium segment, the Seal competes head-to-head with the Model 3. But research service availability in your area before buying.
If you live in the US: Not a viable option due to 100% tariffs.
Conclusion: The New World Order of EVs
BYD's coronation as the world's largest electric car seller marks a turning point in the automotive industry.
A company that started making cell phone batteries with $400,000 borrowed now generates $117 billion in revenue and employs 570,000 people. While Tesla loses market share (-9% in sales in 2025), BYD grows at nearly 30% annually.
Wang Chuanfu's story, from orphan to CEO of the world's largest EV empire, is inspiring. But what really matters for consumers is that competition is forcing lower prices and better technology.
Tesla can no longer rest on its laurels. Traditional European manufacturers are on high alert. And BYD keeps accelerating.
The future of electric mobility is being written right now. And a large part of that future speaks Mandarin.
Are you considering a BYD for your next car? Or would you rather wait for the service network to improve? The decision is yours, but now you have all the data to make an informed choice.
