BUSINESS

Chart of the Day: China’s Car Sales Grow as EV-Makers Slash Prices Again

Published: Jun. 12, 2025 6:50 p.m. GMT+8

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China’s car sales saw double-digit growth in the first five months of this year, driven by strong demand for new-energy vehicles (NEVs), as a new wave of price cuts hit the market.

During the period between January and May, sales of passenger cars in China grew 13.9% year-on-year to about 8.92 million units, according to data released by the China Association of Automobile Manufacturers (CAAM) Wednesday.

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China's passenger car sales increased by 13.9% year-on-year to 8.92 million units from January to May.
During this period, New Energy Vehicle (NEV) sales grew by 40% to 4.47 million, surpassing fossil-fuel car sales.
BYD led the Chinese car market with a 13.8% share, while SAIC and Geely reported significant profit increases.

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Who’s Who

BYD Co. Ltd.: BYD Co. Ltd. is China's largest EV maker by sales, holding a 13.8% market share. It initiated price cuts on 22 models by up to 34% in late May to attract consumers. Its vertically integrated supply chain and self-developed battery technology give it a significant cost advantage. In the first quarter of this year, BYD doubled its net profit.

Geely Automobile Holdings Ltd.: Geely Automobile Holdings Ltd. is a Chinese automaker whose EV brand, Galaxy, has offered limited-time discounts on its vehicles. In the first five months of the year, Geely captured 10.6% of the Chinese car market. It saw a significant net profit growth of 264% in the first quarter of this year.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is a state-owned enterprise in China that produces automobiles. It is a major player in the Chinese car market, securing the second-largest market share with 12.9%. Their net profits increased by 11.4% in the first quarter of this year. SAIC has also committed to paying its suppliers within 60 days.

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (GAC Group) is a state-owned automaker in China. Its EV brand, Aion, has implemented limited-time discounts, mirroring price cuts by rivals like BYD. GAC Group is one of more than a dozen Chinese carmakers that have vowed to pay all their suppliers within 60 days, responding to government directives and addressing concerns about late payments due to squeezed profits from price wars.

Zhejiang Leapmotor Technology Co. Ltd.: Zhejiang Leapmotor Technology Co. Ltd. is an EV upstart in China. It has recently offered limited-time discounts on its vehicles, following a trend of price cuts initiated by larger EV manufacturers like BYD to attract price-sensitive consumers.

Nio Inc.: Nio Inc. is identified as a smaller EV-maker in China that is struggling to achieve profitability. Along with XPeng Inc., Nio Inc. reported net losses in the first quarter of this year. This comes amid a prolonged price war in the automotive industry, which authorities warn is eroding profits.

XPeng Inc.: XPeng Inc. is an electric vehicle (EV) upstart in China. Despite strong growth in overall auto sales, XPeng Inc. is struggling to turn a profit, reporting net losses in the first quarter, amidst a protracted price war in the industry.

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What Happened When

First quarter of 2025：: BYD doubled its net profit; Geely and SAIC saw their net profits grow 264% and 11.4% respectively, while Nio Inc. and XPeng Inc. reported net losses.

Between January and May 2025：: Passenger car sales in China grew 13.9% year-on-year to about 8.92 million units; NEV sales jumped 40% year-on-year to 4.47 million, surpassing fossil-fuel powered passenger car sales which declined 4.1% to 4.45 million.

2025：: Rival automakers including Geely Galaxy, SAIC Roewe, GAC Aion, and Leapmotor rolled out limited-time discounts; government issued directives to foster 'high-quality' development in the auto industry.

Late May 2025：: BYD kicked off another round of price cuts, slashing prices on 22 models by up to 34%.

May 31, 2025：: Ministry of Industry and Information Technology (MIIT) condemned carmakers’ price cuts for squeezing profits and harming consumer rights.

As of Wednesday, June 12, 2025：: More than a dozen Chinese carmakers, including BYD, SAIC, and Geely, vowed to pay all their suppliers within 60 days following government directives.

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