Overview

• Chinese officials project that over half of new car sales in 2025 will be new-energy vehicles (NEVs), continuing rapid growth from 47% in 2024.
• BYD leads the domestic market, capturing 29% of Q1 2025 sales—more than the next four competitors combined.
• Tesla's entry in 2020 spurred innovation and price competition, halving EV costs in China but leading to market consolidation and startup failures in 2024.
• Tech giants Xiaomi and Huawei expand into the EV sector, with Xiaomi launching its first electric sedan in 2024 and Huawei supplying software to automakers.
• Following a fatal March crash involving a Xiaomi vehicle on autopilot, regulators have issued warnings to manufacturers about overstating autonomous driving capabilities.