Summary
- China’s EV market saw a small sales slump at the beginning of the year but plugins had an 11% rise
- Plugin vehicle share started the year at 42%, 10% more than the previous year
- Geely models dominated the top 10 in January sales, with Volkswagen having the most representation with ICE sedans
- Best sellers in different size categories, except for the compact cars (C segment), were plugins
- Top 5 best-selling models in January included BYD Song, Geely Geome Xingyuan, Tesla Model Y, Wuling Mini EV, and Xiaomi SU7
Article
In January, the electric vehicle (EV) market in China started the year with a smaller sales slump than expected. Despite an overall market drop of 12%, the number of plugin vehicles (PEV) rose by 11%, reaching around 774,000 new energy vehicle registrations. This resulted in a high PEV share of 42%, with battery electric vehicles (BEVs) accounting for 24% of that share. While this was slightly below the final 2024 result of a 48% PEV share, it is expected to reach 55% or higher by the end of the year. The growth in the plugin vehicle market reflects changing trends in the Chinese EV market, with a significant shift towards electric mobility.
Pure electric models saw a higher growth rate than the overall plugin vehicle market in January, with plug-in hybrid electric vehicles (PHEVs) being the fastest growing powertrain, increasing by 19% year on year. However, the growth of plugins was slightly lower than expected due to a surprising 24% drop in Extended-Range Electric Vehicle (EREV) sales. With the current star of the EV market experiencing a decline, the plugin market breakdown showed BEVs leading with 57%, followed by PHEVs with 34%, and EREVs with only 9% market share.
In terms of sales rankings, ICE models dominated the top positions at the beginning of the year, with six models in the top 10. The BYD Song was the best-selling model, followed by two Geely models, showcasing a potential shift in the market dynamics. The presence of Volkswagen sedans in the top 10 highlights the variety of models offered in the Chinese automotive market. The Tesla Model Y and Wuling Mini EV were the top-ranking plugin models, emphasizing the growing popularity of electric vehicles in China.
Looking at the best-selling models in different size categories, plugin vehicles led in all categories except for the compact car segment. The Geely Xingyuan, a subcompact hatchback, surprised by beating competitors from BYD and Wuling in the subcompact category. The success of the Geely Xingyuan reflects Geely’s intentions to challenge traditional market leaders like BYD in the Chinese EV market. With a diverse range of body types and sizes in the top 5 best-selling models, there is a clear trend towards offering a variety of electric vehicles to cater to different consumer preferences.
In the overall manufacturer ranking, Geely surpassed BYD in January with 198,000 units sold, marking a 43% year-on-year growth for the company. Geely’s strong performance in a month when most other manufacturers saw declining sales suggests a potential shift in the market landscape. BYD remained in the top spot but experienced a decline in market share compared to the previous year. As Geely continues to expand its lineup and consolidate its position in the Chinese EV market, it could pose a serious challenge to BYD’s longstanding leadership.
At the OEM level, BYD maintained its position as the top manufacturer, with Geely following closely behind. Geely’s impressive growth in market share over the years indicates its potential to become a strong competitor to BYD in the future. With other manufacturers like Changan and SAIC also making significant contributions to the electric vehicle market, the competition is expected to intensify in the coming years. The diversity in the top 5 EV manufacturers in China reflects the evolving landscape of electric mobility in the country.
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