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China’s best-selling carmaker BYD sold a record number of electric and hybrid vehicles globally last year, even as stiff competition emerged in its home market.
Tesla’s biggest rival sold 4.3 million EVs and hybrids in 2024, well above the 3.6 million target it had previously set, according to a company statement. “Champion of China, champion of the world,” the company said in a social media post late Wednesday.
BYD sold more than 1.76 million pure EVs last year, narrowing the gap with Tesla in the race to be the world’s best-selling EV company in 2024. Tesla’s sales figures for the fourth quarter, expected later Thursday, must reach 515,000 for it to meet its 2024 target of 1.81 million vehicles sold.
Li Auto, China’s first profitable EV start-up Leapmotor and Stellantis-backed smartphone maker Xiaomi also exceeded their targets, selling 500,000, 290,000 and 135,000 EVs respectively during 2024.
China is expected to sell more electric vehicles, including pure battery cars and plug-in hybrids, than vehicles with internal combustion engines for the first time in 2025, as a result of hundreds of billions of dollars in government subsidies over the past decade .
Automakers have also been helped by a trade-in scheme launched last April, which allowed consumers to receive 20,000 Rmb ($2,740) for trading in an old gas-powered car with an EV.
But while some of the biggest names performed well, stiff competition and a prolonged price war have put many players under pressure. Dozens of companies such as Xpeng and Nio missed their sales targets, even though they saw growth.
“Market competition is very fierce,” said Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight. “Bigger companies are getting an ever-larger slice of the pie, while most of the smaller groups are struggling.”
Consolidation is already reshaping the world’s largest EV market. Once high-flying startups like Baidu-backed HiPhi and Jidu have failed over the past year. Auto conglomerate Geely combined its Zeekr and Lynk & Co sub-brands in November to “streamline operations”.
“Economies of scale matter more than ever for automakers as the industry shifts to electric cars,” Zhang added.
Analysts also noted that the entry of technology groups such as Xiaomi and Huawei had deepened competition.
As of December 31, Xiaomi sold more than 135,000 units of its single model, the SU7 sedan, launched in late March, exceeding its target of 130,000 cars. Founder Lei Jun said on Wednesday that the group aimed to double that in 2025 by offering 300,000 EVs.
“The country’s EV market is huge, so even a niche segment could see significant demand,” said Li Yanwei, a member of the expert committee of the China Association of Automobile Dealers.
“Xiaomi’s SU7 sedan made waves 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 address. “(China’s) annual production volume of new energy vehicles exceeded 10 million units for the first time,” Xi said in a televised speech on Tuesday.
