China’s BYD has once again become the world’s largest seller of battery electric vehicles (BEVs), overtaking American rival Tesla in the second quarter of 2026. Tesla’s sales increased by 25% year on year, but the growth was not enough to retain the top position. In the first quarter, Tesla was ahead of BYD, but the two companies switched places again in the second quarter.
At the same time, BYD’s BEV sales remained below the level recorded a year earlier, although the decline slowed. One of the most important factors behind the company’s growth strategy is its rapid international expansion. In the first half of 2026, overseas sales accounted for 44% of BYD’s total production volume, highlighting the company’s growing dependence on international markets.
China remains the world’s largest market for new energy vehicles (NEVs), but demand there is showing signs of slowing. In the second quarter, China accounted for 56% of global sales of battery electric vehicles, plug-in hybrids, and hydrogen fuel-cell vehicles, down from 66% a year earlier. According to TrendForce, this trend is making international expansion increasingly important for Chinese automakers.
Another notable development is the rise of Chinese manufacturer Leapmotor, which entered third place in the global ranking of electric vehicle manufacturers for the first time. Toyota climbed to seventh place after increasing its EV sales by 143% year on year. Meanwhile, Volkswagen dropped out of the global top 10 electric vehicle sellers for the first time.
BYD has also retained its leadership in the plug-in hybrid (PHEV) segment. Chinese automakers are expanding particularly rapidly in Europe. In the second quarter, Chinese brands, excluding Volvo Cars, which is owned by Geely, accounted for almost 30% of the PHEV market in Western Europe.
Overall, global sales of new energy vehicles reached 5.37 million units in the second quarter of 2026, representing a 10.4% increase compared with the same period a year earlier. When conventional hybrids (HEVs) are included, electrified vehicles accounted for a record 33.2% of global vehicle sales. The latest figures show how quickly the global automotive industry is changing.
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