1/2/2025–|Last updated: 1/2/202506:30 PM (Mecca time)
China’s electric car makers, led by BYD, achieved a sales boom in late 2024, setting the stage for another difficult year as automakers face demand risks at home and abroad.
so:
- Chinese giant BYD sold 4.27 million electric and plug-in hybrid cars last year.
- Li Auto Inc. has delivered more than 500,000 vehicles.
- Leapmotor, a partner company of Stellantis, doubled its sales to exceed 293,700 cars.
Other popular brands, including Nio Inc and Xpeng Inc, failed to meet their targets despite high demand at the end of the year.
Fierce competition
Deliveries of the luxury electric car brand Zeekr, affiliated with Zhejiang Geely, rose by 87% to 222,123 cars last year, lagging behind its target of 230,000.
The broader Geely Auto Group, including its eponymous brand, delivered 2.18 million vehicles, up 32% year-on-year.
The mixed results signal another year of fierce competition for the world’s largest auto market, which has endured a relentless price war that has seen major manufacturers gain share at the expense of smaller companies.
Rising trade tensions with major trading partners such as the European Union have affected Chinese electric vehicle exports, and the country’s largest industrial group urged the government to extend facilities for trading in older vehicles to stimulate domestic sales.
Bloomberg quoted the Secretary-General of the China Passenger Car Association, Cui Dongxu, as saying that these doubts cloud the beginning of 2025, despite the better-than-expected result for 2024, and overall retail sales of passenger cars in China may increase only 2% to 23.4 million cars. In 2025, from a growth of 5.7% last year.
recovery
“We have seen a recovery from stronger automakers, such as Geely and BYD, and this momentum may continue in 2025, as well as strong growth from companies like Xiaomi,” Dongxu added.
He continued: “Exports are facing more pressure due to geopolitical issues, and therefore domestic sales are expected to play a more important role.”
This is likely to put more pressure on Chinese automakers to introduce newer models or technology-laden offerings that are popular with the country’s increasingly selective buyers.
Brands under Huawei Technologies Co.’s Harmony Intelligent Mobility Alliance, including ITO, sold more than 444,000 vehicles last year, after exceeding the initial delivery target of 100,000 SU7 electric sedans.
Xiaomi Chairman Lei Jun said that the sales target for its electric car division will be raised to 300,000 for 2025, with the launch of an SUV this year.
Traditional automakers risk losing more market share, and deliveries of SAIC, Volkswagen’s state-owned partner, and Toyota’s partner Guangzhou in 2024 are expected to decline by 20%.
