BEIJING – As of 2025, China's once-booming electric vehicle market is experiencing a downturn, highlighted by decreasing sales and forecasts of a prolonged price war. Tesla announced a 7.4% decline in sales from the previous year, while BYD, the market leader, reported a 5.1% drop, based on statistics from the China Passenger Car Association, which cover the period from January to November.
In a more dramatic shift, BYD saw its passenger car sales in November fall by 26.5% compared to a year earlier. Conversely, new competitors, such as those vehicles featuring Huawei software and offerings from Xiaomi, posted impressive sales growth exceeding 90% during the same timeframe.
The original trio of U.S.-listed Chinese electric car startups - Nio, Xpeng, and Li Auto - failed to enter the top 10 sellers for the month, despite showing some improvements in their monthly delivery figures.
According to Xiao Feng, co-head of China Industrial Research at Citic CLSA, market concentration has risen significantly, with the top ten producers commanding about 95% of the new energy vehicle market in China, a notable increase from around 60% to 70% just a few years prior. The scope of new energy vehicles covers both battery-electric and hybrid models.
Xiao Feng commented on the industry trends, stating, "I think there will be further industry consolidation even though prices matter more than specific brands. Obviously buyers will not buy a car they [have] never heard of."
Two models from Xiaomi's electric car lineup, available in various colors, are displayed in a photograph dated November 2, 2025.