China's Automotive Industry Sees Accelerated Restructuring in H1 2025 with Record Market Share for Domestic Brands

In the first half of 2025, the Chinese automotive market has exhibited distinctive characteristics of 'total growth, structural optimization, and energy transformation' driven by policy guidance, technological innovation, and corporate strategic adjustments. Sales data indicates that mainstream automakers have all achieved year-on-year growth, with new energy vehicles (NEVs) continuing to lead the market and domestic brands reaching a record market share. After the early-year price wars, the industry has shifted towards technological competition under policy regulation, with intelligence and globalization becoming core keywords. This transformation, driven by new energy, is propelling the Chinese automotive market towards a new stage of high-quality development. In the first half of 2025, the sales momentum in the Chinese automotive market continued to grow, with leading companies making significant efforts. Domestic brands and NEV models have become the absolute growth engines, optimizing market structure further. For instance, BYD, SAIC Motor, Geely, Changan, and Chery, collectively achieved over 68% of market share, firmly holding the market dominance, with explosive growth in NEV sales being a common feature. BYD led the industry with cumulative sales of 2.146 million vehicles, marking a 33.04% year-on-year increase and achieving 39% of its annual target of 5.5 million. Notably, the overseas market performance was remarkable, with 470,000 units sold abroad, nearing 60% of its annual target of 800,000. SAIC Motor reported cumulative sales of 2.053 million vehicles, a 12.4% year-on-year increase, with domestic brands contributing 1.304 million vehicles, up 21.1%. In the NEV sector, SAIC's sales reached 646,000 units, a 40.2% increase. Geely's cumulative sales reached 1.409 million vehicles, growing by 47%, with the NEV segment being the highlight at 725,000 units, a staggering 126% increase. This prompted Geely to raise its annual sales target from 2.71 million to 3 million, showing confidence in market demand. Changan's sales hit 1.355 million units, a near eight-year high, with NEV sales growing by 48.8%. Chery showcased impressive acceleration with 1.26 million units sold and NEV sales of 359,000 units, reflecting a 98.6% growth. Great Wall Motors sold 569,000 units, including approximately 35,000 from its high-end NEV brand Wey. New forces and niche brands showed a solid performance, with companies like Leap Motor and Li Auto leading the new energy segment. Leap Motor sold 222,000 units, maintaining its lead among new forces for four consecutive months, while Li Auto achieved sales of 203,900 units. XPeng Motors sold 197,000 units, surpassing its entire 2024 delivery volume, bolstered by its smart driving technology. Xiaomi Motors debuted its first SUV, the Xiaomi YU7, with sales exceeding 150,000 units. Industry experts attribute the strong performance to China's robust economic growth, boosting consumer purchasing power and leaving room for market expansion due to a relatively low car ownership base. Policy measures, such as vehicle replacement programs and incentives for NEVs in rural areas, have stimulated consumer demand, effectively driving sales growth. In terms of industry ecology, the automotive sector is experiencing profound changes across policy, technology, and globalization. In May, officials from the Ministry of Industry and Information Technology emphasized strengthening regulations against 'involutionary' competition in the automotive industry, promoting structural optimization, and ensuring a fair market environment, marking a significant turning point in market dynamics. As competition shifts towards technology, automakers are investing heavily in core areas such as battery life, smart driving, and vehicle systems, entering a new phase of 'cost reduction and efficiency enhancement.' In terms of technology, the differentiation of new energy routes and the upgrade of intelligence are progressing simultaneously. The electric vehicle sector focuses on range and charging efficiency, while hybrids and extended-range vehicles, represented by BYD and Chery, are capturing the fuel vehicle market. On the intelligence front, AI models are deeply integrated into manufacturing, with companies like Baidu and Huawei supporting the realization of L3 autonomous driving. Globally, Chinese automakers are shifting from single-export models to establishing overseas factories and localizing supply chains, with BYD’s overseas sales reaching 470,000 units in the first half of the year. Firms are also restructuring to optimize resources and lower costs, while enhancing core technologies. The automotive market is expected to see intensified competition in the second half of the year with the release of new models and the expansion of overseas production capacity, marking a critical step in transitioning China from a 'manufacturing giant' to a 'stronghold of intelligent manufacturing.'