China’s auto company BYD has reportedly secured the top spot in the global electric vehicle market, raising concerns in Europe and North America about the impact on domestic auto industries. According to a new report by European media house Politico, BYD sold approximately 4.6 million vehicles in 2025, including 2.26 million pure battery-electric cars, surpassing Tesla’s deliveries.
The report highlights that BYD and other Chinese automakers are increasing their market share in Europe, creating pressure on traditional manufacturers like Volkswagen, Mercedes-Benz, and BMW. The report warned that unless the West unites, the situation may not end favorably, describing BYD as a “pirate ship” undermining industrial bases in Europe and America with its low-cost electric vehicles.
BYD’s success is attributed to a business model based on piracy, involving strategies like copying, absorbing, subsidizing, scaling, dumping, and dominating. The company allegedly started by replicating Japanese automaker designs and then progressed to developing various components internally through reverse engineering, including batteries, motors, electronics, powertrains, and semiconductors.
The vertical integration of BYD, along with state support and access to China’s vast market, has facilitated its rapid expansion into Europe and other regions. The report also mentioned that China has offered foreign automakers access to its consumer market through joint ventures, coupled with technology transfer requirements. European Union officials have proposed a 17% countervailing duty on Chinese electric vehicles, but concerns about trade and Chinese investments have led to fragmentation in the bloc’s response.
Chinese automakers are reportedly using Canada and Mexico as gateways to enter the North American market. They are strategically establishing dealer networks, understanding consumer preferences, and preparing for regulatory access to the US market, as per the report.
