Sales data continues rolling in and the latest numbers are from Tesla. They leave a lot to be desired as deliveries slumped in the fourth quarter and fell for the year.

Jumping right into the numbers, Tesla delivered 418,227 vehicles in the fourth quarter of 2025. That compares to 495,570 units a year ago and this represents a 15.6 percent drop.

More: Tesla Shares Forecast Saying The Models Nobody Buys Will Double In Sales In Q4

Interestingly, sales of “Other Models” – including the Model S, X, and Cybertruck – plummeted from 23,640 to 11,642. That’s a decline of 50.8 percent and it shows the company’s wedge-shaped pickup continues to be a flop.

For the full year, Tesla delivered 1,636,129 vehicles. That’s down from 1,789,226 in 2024, marking an 8.6 percent decrease overall.

Tesla Q4 2025 Sales

Tesla didn’t have much to say about the disappointing numbers, but the company will reveal their full financial results on January 28. However, the Q4 numbers were worse than the original estimate of 422,850 vehicles. This also meant the full year sales total fell below projections.

While the numbers weren’t too far off, projections for Other Models was laughably wrong as they indicated the company would sell 34,848 units in the fourth quarter. However, they only managed to move 11,642, which means those estimates were off by nearly 300 percent.

Tesla 2025 Sales

On the bright side, the automaker did reveal one positive development and that was a record deployment of 14.2 GWh worth of energy storage products in the fourth quarter. That brought their full year number to 46.7 GWh, which is a substantial increase from the 31.4 GWh deployed in 2024.

While Tesla didn’t delve into specifics, the company’s problems are well-known. Outspoken CEO Elon Musk alienated a number of his customers by joining the Trump Administration and slashing the federal workforce in a sometimes haphazard fashion. The company also had to deal with increased competition and the elimination of federal tax credits, which caused sales to slump at Rivian.

BYD Outsells Tesla

Tesla’s disappointing showing means they’re no longer the best-selling electric vehicle brand in the world. As BBC News reported, BYD sold 2,256,714 EVs last year, which put them 620,585 units ahead of Tesla.

However, this shouldn’t come as much of a surprise as Tesla was barely hanging onto the title. The company’s 1,789,226 sales in 2024 was just ahead of BYD’s total of 1,777,965.

It’s also worth noting BYD had combines sales of 4,537,356 units in 2025, which includes sales of things like plug-in hybrids and buses.

Once treated as curiosities or written off entirely, Chinese cars have quietly secured a firm foothold in the UK’s market. By the end of 2025, vehicles imported from the Far East are expected to make up around 10 percent of all new car sales in the country. The days when Chinese models were casually dismissed by Western buyers now seem increasingly out of step with reality.

Read: Europe Tried To Block Chinese Cars But Ended Up Helping Them Instead

A new report from The Guardian, citing European EV analyst Matthias Schmidt, estimates that once the final sales numbers for 2025 are in, Chinese brands will have sold more than 200,000 new vehicles in the UK.

MG and BYD Drive the Surge

The lion’s share of that success comes from three names in particular: MG, BYD, and Chery. Meanwhile, as Chinese manufacturers have gained ground, demand for Japanese cars has noticeably slipped.

MG continues to lead the pack by a wide margin. It sold over 70,000 cars in 2025, keeping pace with its strong performance from the previous year. BYD has also stepped up in a significant way, increasing its UK sales from fewer than 9,000 in 2024 to more than 40,000 this year. Their presence on British roads is no longer novel.

Several other Chinese brands posted significant gains during the year as well. Jaecoo sold over 20,000 vehicles, while Omoda came close to that same figure. Chery, Polestar, and Leapmotor have also continued to find traction with UK buyers, though on a somewhat smaller scale.

At the same time, Japanese brands have seen their market share in the UK slip by nearly a full percentage point over the past twelve months. The decline isn’t dramatic, but it is measurable, and it mirrors trends playing out across the continent.

Why Tariffs Didn’t Slow Things Down

As The Guardian reported, Chinese car sales have risen across the European continent despite the imposition of steep tariffs. In an effort to protect domestic manufacturers, European lawmakers introduced these measures late last year, targeting EVs produced in China. However, the tariffs do not apply to hybrid or internal combustion models, and sales of those have surged accordingly.

The UK, now outside the EU, has proven especially receptive to these brands. With no major domestic carmakers remaining, the market is wide open.

“With no genuine domestic volume brands for UK consumers to choose from, UK consumers crucially can no longer participate in what is known as patriotic purchasing,” said analyst Matthias Schmidt. “In Germany and France, half of each country’s new-car market is effectively in the control of domestic brands. While in China, we now also see that two-thirds of the market is accounted for by domestic brands.”

Chinese electric vehicles are spreading fast across global markets, fueled by booming demand and strong backing from Beijing. In November alone, China’s EV exports jumped 87 percent compared to the same month last year. Yet even with this rapid growth, cracks are starting to show.

The year 2026 is shaping up to be a major turning point for China’s EV sector, with a looming shakeout expected to hit dozens of struggling manufacturers.

Read: China’s Getting Ready To Flood The World With Even Cheaper EVs And PHEVs

Deliveries of new vehicles in China are expected to slip by as much as 5 percent next year, the largest contraction since 2020, due in part to lowered government support and the industry’s history of overcapacity.

Industry at a Crossroads

And this isn’t speculation from outsiders either, but comes from the South China Morning Post (SCMP), a Hong Kong-based English-language newspaper owned by Alibaba Group. The SCMP reports that around 50 of China’s money-losing EV makers may be forced to either downsize or shut down entirely in 2026.

“Time is against those players whose cars cannot impress young drivers,” said Qian Kang, who runs a factory producing automotive printed circuit boards. “For most of the unprofitable EV assemblers, next year’s performance will be critical.”

Policy Shifts and Market Pressure

Much hinges on an upcoming policy decision. In January, Beijing is expected to determine whether the 20,000 yuan (roughly US$2,900) EV trade-in subsidy will be extended. Meanwhile, the current 10 percent purchase tax exemption is set to expire at the end of this year. A reduced 5 percent rate will apply starting in January and remain in place until the full tax returns in 2028.

While the price war among Chinese firms has brought affordable EVs within reach of millions of car buyers, it has eroded many companies’ ability to turn a profit. Combined with significant investments into research and development, as well as urgency among brands to establish large portfolios of models, it’s hardly a surprise that very few carmakers have become profitable.

“The fundraising bonanza surrounding China’s EV makers and key car component suppliers is history now,” angel investor Yin Ran said. “So it will be a game of survival, with profitable carmakers becoming the winners, while unprofitable players face running out of funds soon.”

Few companies have weathered the storm. Profitable big players such as BYD, Seres, and Li Auto stand out as rare exceptions. These firms are expected to intensify their overseas efforts as they look for new growth opportunities. Research from AlixPartners suggests that only about 10 percent of China’s EV brands will be profitable in the coming years.

Leapmotor Gets Cash Injection

Among the handful of companies securing new support, Stellantis-backed Leapmotor has landed a major investment. The state-owned FAW Group has announced it will acquire a 5 percent stake in the Chinese carmaker for 3.74 billion yuan, or $534 million. This makes Leapmotor the first of the nation’s car manufacturers to receive investment from a state-owned group and will help with its planned expansion.

Leapmotor is aiming to deliver 1 million vehicles in 2026. If it achieves this figure, it would be China’s third-largest EV maker, trailing only BYD and Geely. Through the first 11 months of 2025, Leapmotor delivered 536,132 vehicles.

“Leapmotor aims to achieve annual deliveries of 4 million units a year in 10 years’ time,” Leapmotor found and chief executive Zhu Jiangming revealed in an interview. “Leapmotor will strengthen our value through the fine-tuning of our production, while offering customers best [driving] experiences.”

Chinese carmakers continue to accelerate their presence across Europe, steadily carving out a larger slice of the market. Once regarded as niche entrants, they now account for a 6.8 percent share of total European sales in October, with powerhouses like SAIC and BYD leading the charge while Tesla’s momentum falters.

Chinese Brands Gain Ground

In that month alone, around 75,000 vehicles from Chinese brands were sold across the European Union, the UK, and EFTA nations, which include Iceland, Liechtenstein, Norway, and Switzerland.

SAIC enjoyed a particularly strong month, with sales soaring from 17,552 in October last year to 23,860 this October. Across the January-October period, its sales have also risen 26.6 percent from 197,686 to 250,250 units.

Read: BYD’s European Expansion Is About to Explode

BYD is also enjoying a surge in demand and has almost triple Tesla’s sales. In October, the company sold a total of 17,470 vehicles across the region, a 206.8 percent rise from 5,695 last October. Year-to-date, its sales have increased by a monumental 285 percent, from 35,949 to 138,390 units.

Tesla’s Bloodbath

Things are not looking so pretty for Tesla. In October, its European sales slipped 48.5 percent from 13,519 units in the same month last year to just 6,964 in 2025. That means it fell even behind Porsche, which itself recorded a 26 percent sales decline but still usurped Tesla with 7,653 sales. Through the first ten months of the year, the American brand’s local sales have fallen 29.6 percent to 180,688.

Of the new cars sold by Chinese brands across the region in October, 36 percent were battery-electric vehicles. Of these, the small BYD Dolphin was the best-seller.

EU + EFTA + UK New Car Sales

Europe Sales Rise

Across Europe, new car registrations have edged up 1.4 percent, with battery-electric vehicles now holding a 16.4 percent share.

In the first ten months of 2025, 1,473,447 new battery-electric cars were registered across the EU. This growth owes much to the four largest markets, including Germany (+39.4%), Belgium (+10.6%), the Netherlands (+6.6%), and France (+5.3%), which together make up 62 percent of the total. In October alone, year-on-year battery-electric registrations rose by 38.6 percent.

Hybrid-electric cars continue to dominate as the most popular powertrain, holding a 34.6 percent share of the market. Between January and October 2025, registrations reached 3,109,362 units, led by Spain (+27.1%), France (+26.3%), Germany (+10.3%), and Italy (+8.9%).

Plug-in hybrids are also on the upswing, totaling 819,201 registrations, a 43.2 percent increase over last year. Demand has been especially strong in Spain (+109.6%), Italy (+76.5%), and Germany (+63.4%). Plug-in hybrids now represent 9.1 percent of all EU registrations, up from 7 percent a year ago.

Petrol-powered cars still hold 27.4 percent of the market, though their share has dropped from 34 percent last year as combustion sales continue to contract. Through October, petrol registrations fell 18.3 percent across major markets, with France down 32.3 percent, Germany 22.5 percent, Italy 16.9 percent, and Spain 13.7 percent.

Diesel continues its downward trend too, shrinking by 24.5 percent to a 9.2 percent market share.

When BYD burst onto the global stage a few years ago, it arrived with a certain sense of experimentation that was hard to ignore, and the most visible example was its infotainment display that could spin 90 degrees and run in either portrait or landscape modes.

While mostly a gimmick, it has helped the brand’s models stand out from the competition. However, the Chinese conglomerate has revealed its spinning screen won’t be around for much longer.

Read: BYD’s European Expansion Is About to Explode

BYD’s vice president, Stella Li, said that while the company’s customers liked having the rotating screen, it is limiting for some apps, in particular Apple CarPlay and Android Auto.

As such, the automaker has ditched it for the new Atto 2 and will eliminate it from other models, too. Moving forward, the screens will be locked in their landscape position.

“We are starting to engage in a lot of apps,” Li told Autocar. “The Atto 2 will be the first model with Google and Apple CarPlay. And if they want to give the best experience, then a rotating screen will limit their apps. And then secondly, we saw the feedback in the market. People love the rotating screens, but the usage is very small.”

Tech Trade-Offs

According to BYD, its infotainment screen had been easier to use in portrait mode when stationary and while on the move, in addition to being better for navigation.

However, in the models that we’ve driven, we’ve always found it easier to operate the screen in landscape mode, perhaps because this is the orientation of the screens in the vast majority of modern cars. Additionally, Apple CarPlay and Android Auto only function in that mode.

Review: BYD Sealion 6 Makes Plug-In Hybrids Feel Seamless But Fun Is Optional

During the same interview, Li also noted that BYD plans to deepen its collaborations with companies like Apple and Google, and locking the display orientation simplifies that process. A fixed screen means fewer interface compromises and smoother integration.

BYD is also ramping up its global ambitions. The company has set its sights on a major push in Europe for 2026. Just this week, its regional managing director announced plans to double the brand’s retail footprint across the continent next year, targeting around 1,000 retail points.

Source: Autocar

Not too long ago, BYD vehicles were a rare sight on the roads of Europe. But over the past five years, the car manufacturer has grown into a global powerhouse, expanding into new markets quicker than any of its competitors. Next year, its models will become even more commonplace throughout Europe.

Read: Stellantis Dealers Are Embracing BYD And Making Things Awkward

Despite the added weight of European tariffs on Chinese-made cars, BYD has no intention of slowing down. The company views Europe as one of its key new territories and expects to reach around 1,000 retail points across the continent before the year closes. That milestone, however, is only the start of what’s planned for 2026.

How Big Will BYD Go?

At a recent event in Frankfurt, Maria Grazia Davino, BYD’s regional managing director for Europe, outlined the company’s next move. She confirmed that BYD will double its footprint in the region next year, calling the expansion essential for winning over customers in a highly competitive landscape.

“In line with successful competitors, we need to have proximity and win proximity to the European customers,” Davino said, reports Reuters.

Currently active in 29 European markets, BYD is pursuing what Davino describes as a “long-term localization strategy.” The plan centers on building more of the vehicles it sells within Europe itself, reducing reliance on imports and strengthening its ties to local economies. Key to this effort is a major new production hub in Hungary, set to open soon.

So far this year, BYD sales in Europe have more than tripled, reaching 80,807 vehicles in just the first nine months.

Even though the Hungarian site has yet to open its doors, BYD is also weighing up the possibility of building a factory in Turkey and a site in Spain.

“Localizing in a mature region like Europe is a very important project. It requires knowledge, dedication, investments, and resources at all levels,” Davino added.

Source: Reuters

Chinese automakers are no longer content with regional dominance, as they’re eyeing the world stage. And if you ask Carlos Tavares, the former head of Stellantis, they might actually pull it off.

The outspoken executive believes Chinese manufacturers could end up rescuing Europe’s car industry from its slow decline. Names like BYD and Geely, he says, may not just survive the global shake-up but emerge as the last few standing.

Read: The Guy Who Broke Stellantis Now Thinks It Might Break Up

Since stepping down from Stellantis nearly a year ago, Tavares has spent his time writing a memoir and touring the press circuit to promote it, offering a steady stream of predictions about where the auto industry is headed.

Will China Save Europe’s Factories?

He’s claimed that Stellantis itself might split apart and even floated the idea that Tesla could exit the car business entirely. Now he’s suggesting that within the next 10 to 15 years, Chinese brands could step in to save Europe’s automotive sector, though not without cost.

“There are lots of nice windows being opened up for the Chinese,” he told The Financial Times. “The day a western carmaker is in severe difficulty, with factories on the verge of closing and demonstrations in the street, a Chinese carmaker will come and say ‘I’ll take it and keep the jobs’, and they’ll be considered saviors.”

Tavares has experience dealing with Chinese car firms. He orchestrated Stellantis buying a 20 percent share of Leapmotor to help launch it into international markets. He also acknowledges that Leapmotor likely entered the deal because “they want to swallow us [Stellantis] some day.”

Trouble in Europe’s Auto Core

The former Stellantis boss hasn’t softened his criticism of Europe’s automotive policy. He argues that the European Union’s ban on new internal combustion cars by 2035 has forced local automakers into massive, and potentially wasted, investment.

According to Tavares, European car companies have poured more than €100 billion into electrification since the rule was introduced. He now predicts the EU will backtrack on the plan entirely.

More: Carlos Tavares Thinks Tesla Might Not Exist In 10 Years

“Who is holding the EU to account for the €100bn of investments that won’t be used? No one,” he said.

The global car industry is in such a dramatic state of flux that Tavares thinks most current brands won’t survive. In fact, he predicts that as few as five or six carmakers will survive.

These could include Toyota, Hyundai, BYD, and likely another Chinese firm, possibly Geely. In this scenario, the rest of the brands would likely be gobbled up by these conglomerates.

Interestingly, Tavares doesn’t include Stellantis among the survivors. Whether that’s professional detachment or a parting shot from a man who knows too much is anyone’s guess.