Overview

• China's NEV market is projected to surpass a 50% share in 2025, driven by state policies, subsidies, and tax incentives that have fueled rapid growth and innovation.
• BYD remains the market leader, capturing 29% of Q1 2025 sales with nearly 700,000 vehicles sold, outpacing Tesla and traditional automakers.
• Foreign automakers like Mercedes-Benz and Volkswagen are unveiling China-specific models and investing in AI technologies to regain competitiveness in the world's largest EV market.
• A fatal March crash involving Xiaomi's autopilot system has prompted Chinese authorities to increase scrutiny on autonomous driving claims and safety standards.
• The ongoing EV price war, triggered by Tesla's 2020 entry, has led to shrinking margins and the collapse of several Chinese start-ups, intensifying market consolidation.