Overview

• China remains the world's largest auto market, with 31 million vehicles sold in 2024, and over 50% of new car sales being electric vehicles.
• Domestic brands like BYD lead the electric vehicle market, bolstered by state subsidies and competitive pricing strategies.
• Tech companies such as Xiaomi and Huawei are reshaping the industry with connected, 'smart' vehicles, accelerating innovation cycles and driving competition.
• German automakers, including BMW, Mercedes-Benz, and Volkswagen, report significant sales declines in China during Q1 2025, with BMW down 17%, Mercedes 10%, and Volkswagen 7%.
• The EU's 2024 anti-dumping tariffs on Chinese EVs continue to strain trade relations, with negotiations ongoing as China explores global expansion to counter domestic overcapacity.