On November 2, 2025, two Xiaomi electric car models in different colors were captured in an image that highlights a significant shift in China's electric vehicle market.
BEIJING — China's once-booming electric car market faces a softening in 2025, as sales weaken and experts predict that the ongoing price war will likely continue.
Data from the China Passenger Car Association, covering the period from January to November, reveals that Tesla's sales decreased by 7.4% year-on-year. Meanwhile, industry leader BYD experienced a 5.1% decline. November sales for BYD's passenger cars saw an even sharper drop of 26.5% compared to the previous year.
Conversely, newer competitors, including vehicles featuring Huawei technology and Xiaomi models, have reported sales increases exceeding 90% within the same timeframe. Yet, the earlier trio of U.S.-listed Chinese startups — Nio, Xpeng, and Li Auto — did not make it to the top 10 best-selling vehicles of the month, although they did show improvements in their monthly delivery numbers.
The market landscape shows increased concentration, with the top ten manufacturers now holding approximately 95% of China's new energy vehicle market, a substantial rise from the 60% to 70% range observed two to three years prior. New energy vehicles comprise both battery-electric and hybrid-powered cars.
According to Xiao Feng, co-head of China Industrial Research at Citic CLSA, "I think there will be further industry consolidation even though prices matter more than specific brands," he said. "Obviously buyers will not buy a car they have never heard of."