China's NEV market booming with record sales, BYD leading, price war impacting profitability

From Nasdaq: 2025-01-10 08:07:00

China’s NEV market saw record-breaking sales in 2024, totaling over 11 million units with NEVs accounting for almost half of all retail vehicle sales. BYD led the way with a one-third share of the market, shipping a record 4.27 million electric and hybrid vehicles globally.

Major Chinese EV companies like NIO, XPeng, and Li Auto also experienced significant growth in deliveries, with Li Auto delivering 500,508 vehicles in 2024, marking a 33% increase from the previous year. Stellantis and Tesla also posted impressive results, with Tesla’s China sales reaching a record 657,000 vehicles.

A persistent price war in the Chinese NEV market has led to over 200 car models seeing price cuts in 2024, impacting profitability. Despite challenges, BYD remains a leader in the domestic market, but faces hurdles in international expansion, particularly in Europe.

China retained its position as the world’s largest auto exporter in 2024, with car exports growing by 25% to 4.8 million units. However, geopolitical tensions and additional tariffs on Chinese EVs by the EU could slow exports in 2025. Chinese automakers are looking to establish production facilities in Europe to counter these challenges.

Looking ahead to 2025, the CPCA predicts modest growth in overall car sales in China, with NEV sales expected to rise by 20%. Established players like BYD and Geely are likely to continue their upward momentum, while newer entrants like Xiaomi are poised for growth. Balancing growth with profitability and navigating export challenges will be key focus areas for the industry.



Read more at Nasdaq: China’s NEV Market: A Tale of Growth, Competition and Challenges