Electric Vehicles

China’s electric vehicle (EV) market has solidified its position as a global leader, producing 76% of the world’s EVs[1]. Between 2019 and 2024, the number of domestic EV brands in China more than doubled, growing from 60 to 137[2]. During this period, international demand for Chinese EVs surged, with exports reaching a remarkable $46.43 billion in 2024[3]. This exponential growth is driven by China’s advanced manufacturing capabilities and the global push toward sustainable transportation solutions.

Leading Chinese EV manufacturers like BYD, NIO, and XPeng are expanding into international markets, particularly in Europe and Southeast Asia, where demand for affordable and high-quality EVs is rapidly increasing. These brands are not just driving technological innovation but also cementing China’s dominance in the global EV sector.

Recognizing China’s dominance, foreign automakers like Volkswagen (VW) are forging strategic partnerships with local players such as Xpeng Motors and SAIC Motor[4]. These collaborations enable international brands to leverage China’s cutting-edge technology, cost-efficient production, and in-depth market knowledge. As the global automotive industry transitions to electric mobility, China’s ability to scale production and export vehicles positions it as a key influencer in shaping the future of sustainable transportation.

The rapid expansion of China’s EV market is also transforming its domestic automotive landscape. With 1.12 million EVs sold domestically in 2024[5], Chinese consumers are increasingly opting for environmentally friendly transportation solutions. Government initiatives under the “Made in China 2025” plan, an expanding charging infrastructure, and heightened environmental awareness are key drivers of this shift. BYD continues to lead the domestic market with a 36% market share[6], offering a diverse portfolio of affordable and innovative EVs tailored to local needs.

The market’s value is forecasted to climb from $305.57 billion in 2024 to $674.27 billion by 2029, representing a compound annual growth rate (CAGR) of 17.15%[7]. However, international competitors are feeling the pressure. Tesla, for instance, recorded a 4.3% decline in sales of its China-made EVs in November 2024[8], underlining the intense competition posed by domestic brands.

China’s EV market is also embracing the rise of software-defined vehicles (SDVs), with technology giants like Xiaomi entering the scope. These companies are revolutionizing traditional vehicles by integrating advanced software systems that enhance connectivity, automation, and performance. Autonomous driving technologies are gaining traction, with projections indicating that by 2030, 90% of passenger vehicles in China will feature some level of assisted driving, and levels 4 and 5 autonomous vehicles will account for 15% of total sales[9]. This technological shift presents both opportunities and challenges for local and international brands striving to remain competitive in this rapidly evolving sector.

Globally, Chinese automaker BYD has overtaken Tesla in sales, marking a major milestone in the EV market. In 2024, BYD sold an impressive 4.27 million vehicles[10], including 484,320 units of its Song series globally[11]. The popularity of plug-in hybrid electric vehicles (PHEVs) is also surging in China, with sales rising by an astounding 89.7% since 2023[12]. PHEVs, which combine electric and traditional fuel powertrains, offer consumers a practical solution to range anxiety while transitioning to electric mobility.

In the domestic market, BYD remains dominant, with budget-friendly models like the Seagull achieving 56,000 units sold this year[13]. Similarly, models such as the Wuling Hongguang Mini EV and Xiaomi’s SU7 are gaining popularity among price-sensitive consumers[14][15]. Tesla’s Model Y has also demonstrated strong performance, highlighting the fierce competition between domestic and international brands in this dynamic market.

Make sure to check out the rest of our Top Trends in China for 2025.

[1] https://www.theguardian.com/business/2024/dec/03/chinas-share-of-global-electric-car-market-rises-to76#:~:text=China’s%20share%20of%20the%20global,western%20tariffs%20risk%20hobbling%20exports.

[2] https://www.wsj.com/business/autos/china-auto-industry-outlook-2025-1afec5a0

[3] https://itif.org/publications/2024/07/29/how-innovative-is-china-in-the-electric-vehicle-and-battery-industries/

[4] https://cleantechnica.com/2023/07/26/vw-partners-with-xpeng-audi-partners-with-saic-in-china

[5] https://www.scmp.com/business/china-business/article/3284879/chinas-ev-king-byd-and-three-rivals-report-record-sales-domestic-market-hums

[6] https://tridenstechnology.com/byd-sales-statistics

[7] https://www.mordorintelligence.com/industry-reports/china-electric-vehicles-ev-market-outlook

[8] https://www.reuters.com/business/autos-transportation/teslas-china-made-ev-sales-drop-43-yy-nov-2024-12-03

[9] https://www.statista.com/topics/13071/autonomous-vehicles-in-china

[10] https://finance.yahoo.com/news/sales-surge-2024-chinese-ev-101542432.

[11] https://www.bitauto.com/news/100197370319.html