Based on data from early 2026, Chinese automakers, led by BYD, have taken over the global supremacy of electric car manufacturing.

 

Based on data from early 2026, Chinese automakers, led by BYD, have taken over the global supremacy of electric car manufacturing, following a period where Tesla’s sales declined and they pivoted away from traditional car production.

In 2025, China strengthened its position as the global leader, accounting for roughly 50% of global EV production and exports, with that share expected to grow.

 

Here is a breakdown of the current situation:

1. The Shift in Leadership (2025-2026)

BYD Overtakes Tesla: In 2025, Chinese manufacturer BYD officially surpassed Tesla to become the world's top-selling electric vehicle manufacturer. BYD reported sales of over 2.2 million battery electric vehicles (BEVs) in 2025, while Tesla delivered roughly 1.6 million.

Declining Tesla Sales: Tesla’s global car sales slipped for a second consecutive year in 2025, falling roughly 9% from 2024.

Production Pivot: While Tesla has not closed down all production, it is significantly changing its focus. In late January 2026, Elon Musk confirmed that Tesla would wind down production of the Model S and Model X to focus on artificial intelligence, autonomous driving (Robotaxi), and humanoid robots.

2. Chinese Supremacy Factors

Dominance of Supply Chain: China controls a significant portion of the global EV supply chain, including rare earth elements and lithium-ion battery production.

Affordability and Variety: Chinese companies like BYD, NIO, and XPeng are offering a wider variety of models at competitive prices that undercut Western manufacturers.

Rapid Expansion: Chinese EV manufacturers are expanding globally, with companies like BYD setting up significant, thousands-strong dealership networks in Europe and expanding into Latin America and Australia.

3. The Future of the Market

China’s Market Share: China is expected to maintain its leadership, with projections suggesting Chinese EV manufacturers could capture 40–50% of the global EV market by 2030.

Trade Barriers: While China has taken the lead, its rapid growth faces challenges, with 100% tariffs on Chinese EVs in the US and up to 35.3% tariffs in the EU.

While Tesla remains a major player, particularly in its Shanghai factory—which produced 52% of its global deliveries in 2025—the era of undisputed, high-volume production leadership for Tesla has ended in favor of Chinese manufacturer