Chinese competitor overtakes Tesla to become world’s largest EV seller
Chinese rival BYD has overtaken Tesla as the world’s largest EV seller.
- Chinese electric car maker BYD plans to sell more than 1 million plug-in models outside China in 2026.
- A recent trade agreement will allow up to 49,000 Chinese-made EVs, including BYD models, to be imported into Canada.
- BYD currently has no plans to sell electric vehicles in the United States due to high tariffs and strict regulations.
Chinese electric car maker BYD aims to sell more than 1 million plug-in models outside its home country in 2026, with an eye on expanding into Canada.
According to multiple media reports, the world’s number one electric car maker currently hopes to sell 1.3 million EVs outside China, Li Yunfei, general manager of BYD’s brand and public relations department, said at a recent press conference in Shanghai.
The news comes after China and Canada announced a recent agreement allowing thousands of Chinese-made EVs to be imported into North America. Under the agreement, Canada will allow up to 49,000 Chinese-made electric vehicles into its market at a so-called “most-favoured nation” tariff rate of 6.1%. Canadian Prime Minister Mark Carney’s office said in a statement that the amount of Chinese-made EVs that Canada plans to allow for sale in Canada “represents the amount in the full year (2023-2024) prior to recent trade tensions regarding these imports, and represents less than 3% of the new car market sold in Canada.”
What does that mean for U.S. EV buyers?
BYD’s electric vehicles are not sold in the U.S. due to factors such as high tariffs and federal regulations regarding connected car technology and vehicle safety standards.
BYD currently sells commercial vehicles in the U.S., but the CEO of the company’s U.S. subsidiary said in an interview that he believes the U.S. market is “too restrictive.”
In a May 2024 interview with Yahoo Finance, BYD America CEO Stella Lee said the U.S. EV market is “an interesting market, but it’s very complex.” While consumer interest appears to be waning, other factors are further complicating the situation, Lee said.
“So we’re saying, ‘No…we have no plans to come to the United States.'”
The Trump administration has imposed 100% tariffs on all Chinese imports, including cars, making it financially prohibitive for BYD to sell cars in the US.
Can US drivers buy BYD EVs in Canada?
Federal laws regarding imported vehicles would also make it difficult for U.S. drivers to buy and drive BYD electric vehicles in Canada and Mexico, as they would have to go through lengthy customs procedures to prove compliance with existing federal auto safety laws.
Under this law, known as the Imported Vehicle Safety and Compliance Act of 1988, U.S. citizens can import a “nonconforming foreign motor vehicle” for personal use, as long as they can prove at the time of import that the vehicle is not intended for resale.
According to the law, anyone importing a nonconforming foreign vehicle must also pay a bond and comply with other conditions established by the U.S. Secretary of Transportation.
How many cars did BYD sell in 2025?
According to the company’s December 2025 sales report, BYD sold 4,602,436 passenger cars and commercial vehicles in 2025.
Sales included 2,256,714 battery electric vehicles, 2,288,709 plug-in hybrid vehicles, and 57,013 commercial vehicles.
What does the Trump administration say about that?
The Trump administration criticized Canadian officials for striking a trade deal with China.
“If you think Governor Carney is trying to turn Canada into a ‘port of call’ for China to send goods and products to the United States, you are sorely mistaken,” President Trump said in a January 24 post on Truth Social.
“China will devour Canada alive and completely, including the destruction of its business, social fabric and way of life in general,” Trump wrote. “If Canada signs a deal with China, there will be immediate 100% tariffs on all Canadian products and products imported into the United States. Thank you for bringing this issue to your attention! President DJT.”
U.S. Transportation Secretary Sean Duffy also appeared at the Washington, D.C., auto show on January 22 and said he thought Canadian authorities would regret the deal allowing Chinese-made EVs to enter the market.
“The world is going to be consumed by China, and China is going to dominate all manufacturing, and we can’t allow that to happen,” Duffy said. “I want to keep these vehicles developed, manufactured and the American spirit here in our country.”
