March 2025 China NEV Market Analysis
China’s new energy vehicle market resumed its vigorous pace in March after a couple of challenging months earlier in the year. Automakers are now once again pushing full throttle in the quest for robust year-end performance.
Overall, monthly sales figures reflected positive momentum across the industry. Several brands, which had recently become cautious about publicizing their data, have reemerged with their numbers, even as a few remain reticent. The narrative remains largely unchanged at the top of the leaderboard.
Catalog
Record-Breaking Performances and Strategic Launches
BYD dominated the scene with a historic March – not only setting a new monthly sales record domestically but also surpassing 70,000 units in exports for the first time. Leading the charge with a quarterly total of 350,615 units, BYD’s aggressive strategy seems aimed at leaving its competitors trailing. The brand introduced advanced models such as the Han L and Tang L, featuring breakthrough technologies like 1-megawatt charging capabilities and powerful 580kW motors. Additionally, BYD has generously rolled out its God’s Eye C Advanced Driver Assistance Systems and DiPilot 100 software to its entire lineup, signaling a decisive move to outpace rivals.
Competitive Shifts and Market Ambitions
Not far behind, SAIC’s resurgence has propelled it into a strong second-place position, edging past Geely Group. Geely’s Galaxy series, in particular, displayed a significant rebound with over 90,000 vehicles delivered in March – marking an 18.3 percent increase month-on-month. Despite this progress, the Galaxy’s figures still account for only about a quarter of BYD’s numbers. However, the remarkable 545.9 percent year-on-year surge suggests Geely is gearing up to pose a formidable challenge to the market leader.
Leapmotor made a noteworthy impact by outperforming both Li Auto and XPeng, achieving 37,095 units sold. This performance represents a 46.7 percent improvement compared to February and an extraordinary 154.7 percent increase from March 2024. With the anticipated arrival of its new B10 model, Leapmotor is poised for an even stronger year, buoyed further by growing demand in European markets.
Stalwarts Facing Headwinds and Future Prospects
Li Auto, having rebounded in March and likely outpacing brands like AITO, celebrated the milestone of one million cumulative NEV sales – a first among China’s emerging players. However, its robust monthly gains of 39.6 percent were tempered by a modest 26.5 percent year-on-year increase, hinting at a slowdown after an explosive entry into every urban tier across China. The imminent launch of a fully electric i8 – a MEGA-inspired SUV with a refined design – could serve as a critical pivot for the brand.
GAC AION also enjoyed a revitalization in March, with its UT and RT models firmly on track. Delivering 34,082 vehicles, the brand posted an impressive 63.4 percent increase from the previous month, although its 4.8 percent year-on-year growth lags behind market expectations. This scenario may be partly attributed to BYD’s aggressive capture of the ride-hailing segment, prompting AION to explore opportunities, including potential exports.
XPeng, on its fifth consecutive month of exceeding 30,000 units, demonstrated steady recovery. Despite modest month-on-month growth of 9.0 percent, the 267.9 percent boost year-on-year underscores XPeng’s growing stability. Early successes of the refreshed G6 and G9 models have even led to a delay in introducing the G7, suggesting the brand is strategically pacing its rollout to consolidate momentum.
Xiaomi’s NEV branch saw March figures nearly reaching the 30,000 mark, fueled partly by the soaring popularity of its SU7 lineup – with waitlists stretching as far out as 46 weeks. The remarkable performance of the SU7 Ultra supercar and anticipation surrounding the upcoming YU7 model indicate significant production challenges ahead for Xiaomi.
Broadening Market Influence
Deepal posted 24,371 units for March, reflecting an 86.8 percent improvement from the previous year. The key question for the brand now is whether its new S09 SUV can successfully encroach on rivals like AITO and Li Auto, and whether expansion in markets like Australia will offer additional momentum.
On the other hand, Zeekr, despite a 105.5 percent year-on-year increase, managed just 15,422 units – a result that may be seen as underwhelming compared to its late-last-year performance. The brand is pinning hopes on the launch of the 007GT and potentially innovative financing options to catalyze sales growth.
Denza enjoyed a relatively strong month with 12,620 units sold, marked by a 48.2 percent monthly gain. Yet, with only a 22.8 percent improvement year-on-year, the brand’s broader breakthrough remains elusive. Its forthcoming N9 large SUV may be pivotal in capturing greater market share in a highly competitive segment.
Emerging brands like AVATR are clearly on the rise, notching their third best month ever with 10,475 units – a figure that translates into a staggering 102.1 percent monthly and 139.9 percent annual increase. With the upcoming introduction of the AVATR 06, the brand is positioning itself as a credible alternative to established names like Model 3 and NIO ET5.
Conversely, NIO’s premium marque appears to be struggling, with slight monthly improvements overshadowed by a 32.1 percent decline compared to last March. The brand faces challenges in retaining its competitive edge amid shifting consumer preferences toward more feature-rich and competitively priced alternatives. Upcoming updates to models such as the ET5 and ES6 may be crucial for NIO’s turnaround strategy.
Other players, like state-owned Voyah, continue to maintain steady but unspectacular sales at around 10,012 units, with models such as the Dreamer MPV – now also exported – anchoring its performance. Meanwhile, Luxeed’s modest output of 10,005 units implies either a recovery from earlier months or a slight downturn, despite strong year-on-year gains of 212.9 percent.
Looking Ahead: New Entries and Emerging Trends
BYD Leopard managed 8,051 units, marking a steady consolidation of its second-branded offerings. The upcoming Titanium 3, equipped with cutting-edge tech features including a roof-mounted drone for higher-end models, may well redefine the segment. With monthly gains of 62.9 percent and a 126.8 percent improvement year-on-year, this product could be a game changer in regions like Europe and Australia under the Denza banner.
A promising new entrant, ROX – formerly known as Polestones – has begun making inroads with its rugged off-roader, echoing the style of a Li Auto vehicle. Its success in markets such as Dubai indicates a growing global appetite for versatile NEVs.
Lastly, even the top-tier segment appears to be experiencing a cooling phase. Yangwang, the most premium brand in the portfolio, recorded a mere 133 unit sales for March. While the upcoming U7 model might inject some much-needed dynamism, sustaining premium sales in an environment of intensifying competition remains a formidable challenge.
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