BEIJING: Tesla has regained the top position in global electric vehicle (EV) sales, overtaking China’s BYD after reporting higher deliveries in the first quarter of 2026, as demand softened in China following policy changes.
Tesla said it delivered 358,023 vehicles worldwide between January and March, up 6.5 per cent year on year. The increase was enough to surpass BYD’s battery electric vehicle (BEV) sales of 310,389 units during the same period.
The shift in leadership comes as changes in China’s subsidy structure and tax policy affected EV demand in the world’s largest market for electric vehicles.
China policy changes weigh on EV demand
China accounted for a major share of global EV sales in recent years, but revised incentives have reduced consumer support in early 2026.
Under new rules, buyers replacing older vehicles receive lower subsidies compared to previous schemes, while a phased return of vehicle sales tax has increased overall purchase costs.
The combination of reduced subsidies and higher taxes contributed to weaker sales momentum in the first two months of the year.
Tesla gains from global stability
Tesla’s performance reflects steady demand across international markets, supported by its established global customer base.
Its Shanghai Gigafactory remained a key production hub, delivering 213,398 vehicles in the first quarter—around 59.6 per cent of Tesla’s global total. Monthly deliveries from the plant also rose significantly, covering both domestic sales and exports.
BYD sees mixed performance
BYD, which produces both battery electric and plug-in hybrid vehicles, recorded a decline in its pure electric segment during the quarter.
Also read: Tesla UK sales slump in February but still lead BYD as EV competition intensifies
However, the company reported a strong rebound in March sales, supported by local incentives and rising fuel prices, which improved demand toward the end of the period.
Tesla and BYD have remained close competitors for the global EV sales lead since 2023, with leadership shifting between the two in recent quarters.
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