Leading Chinese electric-vehicle (EV) makers reported strong sales growth in the first quarter of this year, as they continued to throttle rivals who manufacture petrol-powered cars.
Top EV companies – from BYD, the world’s largest electric-car assembler, to Geely’s Zeekr – posted year-on-year increases for the first quarter on Tuesday, alleviating some concerns about economic sentiment.
Guangzhou-based Xpeng was the big winner in the first quarter as its deliveries surged 330.8 per cent from a year earlier to 94,008 units. Its mass-market Mona brand attracted thousands of young consumers who were eager to use the company’s indigenous driver assistant system.
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The Mona M03, priced at 119,800 yuan (US$16,733), poses a serious challenge to Tesla because it offers similar smart features to the Model 3 sedan – at around half the price.
BYD’s first-quarter deliveries rose 59.8 per cent to more than 1 million vehicles, while Zeekr sales jumped 21.1 per cent to 114,011 units.
Total EV delivery numbers for the first quarter are not yet available, but Cui Dongshu, general secretary of the China Passenger Car Association (CPCA), told the China EV100 forum in Beijing on Sunday that the industry group predicted the penetration rate of electric cars would stand at 56 per cent.
The EV category, which includes pure-electric and plug-in hybrid vehicles, overtook petrol-powered cars on the mainland in June.
Thanks to government support and a willingness among consumers to embrace new technology, Chinese EV makers flourished over the past decade and lured buyers away from once dominant players like Volkswagen and Buick.
Wang Qing, the deputy director of the market economy institute under the State Council’s Development Research Centre, told the EV100 forum that 98 per cent of mainland EV buyers believed only environmentally friendly vehicles could replace those powered by internal combustion engines.
At present, buyers of EVs for replacement purposes are eligible to receive a government trade-in subsidy of 20,000 yuan, while those buying petrol-powered cars receive only 15,000 yuan. Mainland EV buyers are also exempt from a 10 per cent sales tax due to Beijing’s determination to bolster new-energy vehicles.
At the weekend, Cui said the CPCA raised its forecast for EV sales by 3.5 per cent to 16.1 million units in 2025. He also said EV deliveries could hit 17 million units this year, exceeding the CPCA’s projection.
EV sales in China, the world’s largest automotive market, accounted for more than 60 per cent of the total deliveries in 2024.
Also in the first quarter, Beijing-based Li Auto delivered 92,864 vehicles, up 15.5 per cent from a year earlier, while Shanghai-based rival Nio said deliveries rose 40.1 per cent to 42,094.
Tesla does not publish monthly sales figures in China, but the US carmaker’s deliveries in the first two months of 2025 dropped 28.7 per cent from a year earlier to 94,000, according to CPCA data.
More from South China Morning Post:
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