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China's best-selling automaker BYD sold a record number of electric and hybrid vehicles globally last year, even as fierce competition intensified in its home market.
Tesla's biggest competitor It sold 4.3 million electric and hybrid vehicles in 2024, far more than its previously set target of 3.6 million, according to a company statement. “China Champion, World Champion,” the company said in a social media post late Wednesday.
BYD sold more than 1.76 million pure electric vehicles last year, narrowing the gap with Tesla in the race to become the world's top-selling electric vehicle company in 2024. Tesla's fourth-quarter sales numbers, due later on Thursday, should hit To its 515,000. To achieve its 2024 goal of selling 1.81 million electric cars.
Li Auto, China's first profitable electric vehicle startup, Stellantis-backed Leapmotor and smartphone maker Xiaomi also exceeded their targets, selling 500,000, 290,000 and 135,000 electric vehicles respectively during 2024.
China is expected to sell more electric cars, including pure battery cars and hybrids, than cars with internal combustion engines for the first time in 2025, the result of hundreds of billions of dollars in government subsidies over the past decade.
Automakers also received help through a trade-in plan launched last April, which allowed consumers to receive 20,000 RMB ($2,740) in exchange for trading in an old gas-powered car for an electric one.
But while some big names performed well, Intense competition The prolonged price war has put dozens of players under pressure. Dozens of companies like Xpeng and Nio failed to meet their sales targets, even when they recorded growth.
“The market competition is very fierce,” said Yale Zhang, managing director of Shanghai-based consulting firm Automotive Foresight. “Big companies take an increasingly large share of the pie, while most smaller groups suffer.”
The merger is already reshaping the world's largest electric vehicle market. High-flying startups like HiPhi and Baidu-backed Jidu have collapsed over the past year. Auto giant Geely merged its sub-brands Zeekr and Lynk & Co in November to “simplify operations”.
“Economies of scale matter to automakers more than ever as the industry transitions to electric vehicles,” Zhang added.
Analysts also pointed out that the entry of technology groups such as Xiaomi and Huawei has deepened competition.
As of December 31, Xiaomi had sold more than 135,000 units of its only model, the SU7 sedan, which was launched in late March, exceeding its goal of selling 130,000 cars. Founder Li Jun said on Wednesday that the group aims to double that in 2025 by delivering 300,000 electric cars.
“The country's electric vehicle market is huge, so even the niche sector could see huge demand,” said Li Yanwei, a member of the expert committee of the China Automobile Dealers Association.
“Xiaomi's SU7 sedan has created a buzz by capturing consumer demand for a customized (car) at an attractive price.”
President Xi Jinping acknowledged the industry's success in his New Year's speech. Xi said in a televised speech on Tuesday that the annual production volume (in China) of new energy vehicles exceeded 10 million units for the first time.
