China's Electric Vehicle Market Sees Impressive Growth in 2024, but Faces Challenges in 2025
China's electric vehicle market has posted impressive performance in 2024, with sales reaching 23.4 million units, a 5.7% growth. However, 2025 is expected to be more complex, with limited growth forecasted at 2%, according to the China Passenger Car Association.
2024: Records for Leaders, Challenges for Others
BYD solidified its leading position by selling 4.27 million electric and hybrid vehicles. Geely delivered 2.18 million units (+32%), while brands like Li Auto and Leapmotor recorded notable growth. However, some players like Nio and Xpeng failed to meet their targets, despite an improvement at the end of the year.
Zeekr, Geely's premium brand, saw its sales surge by 87% to reach 222,123 units, but fell short of its 230,000-unit target. This fierce competition, exacerbated by a price war, has particularly weakened smaller manufacturers.
Challenges for 2025: Internal and External Pressures
Local demand is becoming crucial in the face of increased pressure on exports, partly due to trade tensions with partners like the European Union. Cui Dongshu, the association's secretary-general, believes that giants like BYD and Geely will continue to dominate, while traditional manufacturers, such as SAIC and Guangzhou, risk losing up to 20% of their market share.
To thrive in a competitive and geopolitically tense environment, innovation and resilience will be essential. 2025 may well redefine the future of China's automotive industry.
