Chinese automaker BYD surpassed Tesla in worldwide electric-vehicle sales for the first time as it increased sales 25% last year, according to a new report that shows China made more than half of global EV sales.

The third annual International Council on Clean Transportation report says Chinese automakers hold five of the top six positions in zero-emissions sales share and together sold more than 11 million units.

“This consistent progress by Chinese manufacturers shows the long-term strategic benefits of early, sustained investment in electrification,” the report says. “In contrast, automakers in the U.S. and EU face the dual challenges of catching up technologically while navigating increasingly uncertain regulatory environments.”

The Trump administration has taken several steps to dampen EV sales expansion in the U.S., including jettisoning California’s mandate that all new-vehicle sales be zero-emissions models by 2035; proposing the end of federal EV purchase tax credits and an annual fee on EVs and hybrids; and halting public EV charger funding to states.

Meanwhile, China’s auto industry has systematically built its EV sector into a global juggernaut.

“As China-based automakers expand globally, other leading global manufacturers face urgent pressure to accelerate their own transitions or risk losing competitive ground,” said ICCT President and CEO Drew Kodjak. 

“The rapid evolution of the EV market in China has created technological and manufacturing advantages for companies there. For the wider global auto industry, this is no longer just about meeting future goals – it’s about remaining competitive today in a market that’s charging up.”

The council’s research also found worldwide industry improvement in EV technology, including faster charging speed, longer driving ranges, and less energy consumption. The shifts included General Motors and Honda’s introduction of high-performance models to “previously limited offerings.”

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