AUTONEWS
BYD claims it wants to overtake Toyota, but its sales are falling
BYD wants to surpass Toyota in worldwide sales, but there are two problems: BYD sells only 4.6 million compared to Toyota's 11.3 million, with the added problem that BYD is losing sales in China.
BYD was the 5th largest manufacturer in the world in 2025, but it is determined to climb in the rankings, specifically aiming for leadership within a few years, which is currently held by Toyota with a large advantage, given that the Japanese group sells around 11.3 million vehicles. This is substantially more than the 4.6 million vehicles sold by BYD.
In the eyes of any analyst, BYD's claims seem (at the very least) excessive. And for two reasons, since even if the goals are long-term, in principle five years, the reality is that BYD would have to increase sales by more than one million units per year for the next five years. Furthermore, in its domestic market, China, the trend has been one of cooling demand.
In 2025, the world ranking determined that Toyota led with 11.3 million vehicles sold, followed by the VW Group with 8.9 million, the Hyundai/Kia group with 7.2 million, with Stellantis appearing in 4th position with 5.5 million units sold. BYD established itself in 5th place, with 4.6 million, ahead of General Motors (4.5 million), Ford (4.3 million), Geely (4.1 million), Honda (3.3 million) and Suzuki (3.2 million).
BYD has some difficulties in justifying this aspiration to lead the sales ranking, especially because the Chinese market for new vehicles has contracted, which led the automaker to register a 29.2% drop in sales there in the last year alone. That's why BYD, like other Chinese brands, took refuge in exporting electric vehicles to Europe, piggybacking on the tariff reductions that German automakers forced Europe to accept. Even so, these reductions allowed BYD's sales to increase substantially in the Old Continent.
The European Union considers English, Japanese, and South Korean cars as "Made in EU"... Despite Japan being about 9,000 km from Europe and the distance to South Korea exceeding 10,000 km, electric vehicles produced in these countries, or manufactured in Europe by brands of these origins but without the mandatory percentage of European incorporation, will now be considered "European". The same will happen with vehicles manufactured in the United Kingdom, which left the European Union in 2020, but will see cars produced there considered "Made in EU". All because the European Union has come to consider these three countries as "trusted partners," exempting their electric vehicles from taxes and benefiting them with aid and incentives similar to models built in the EU, in order to better face Chinese competition.
The "Industrial Accelerator Act," the recent proposal introduced by the European Commission to accelerate competitiveness, speed up the "green" transition, and protect European production from what it considers unfair competition, is mainly aimed at the green industry (solar panels and inverters), the defense industry, and the automotive industry. And, in the latter, the enemies to be defeated are, above all, Chinese automobiles.
Among electric vehicles, the "Made in Europe" or "Buy European" concept is becoming dominant, requiring that the models in question be built in Europe and also have 70% of their components made on the Old Continent (except for the batteries). Simultaneously, investments by foreign (read "Chinese") manufacturers exceeding €100 million will face stricter regulations, especially if that foreign state controls more than 40% of that sector in the global market.
The major difference between electric vehicles being considered "Made in Europe" or not lies in the fact that only the former can be acquired by different states and by public companies or those receiving industrial subsidies, in addition to benefiting from aid or incentives from different governments. This will make imported battery-powered cars from China, or those manufactured in Europe but without the 70% European incorporation requirement, less attractive.
To better understand the scope of this "Made in Europe" label, it's worth remembering that 30% to 40% of new vehicles sold in the EU are acquired by the entities covered, and both these and the rest, including those purchased by private individuals, seek to benefit from state aid and incentives, which also depend on the origin of the vehicles. And, probably among the three countries, the United Kingdom will be one of the most benefited, insofar as, without this "protection," Nissan would not have invested again in its British factory to produce the new Leaf there, possibly closing the facilities for good. The new legislation should come into effect during 2027.


