In the context of global energy transition and increasing awareness of environmental protection, the new energy passenger vehicle market is experiencing unprecedented changes and development. According to the latest data, in February 2025, the wholesale sales of new energy passenger car manufacturers in China reached 840,000 units, a year-on-year increase of 82%, and although it decreased by 5% month-on-month, the cumulative wholesale sales from January to February were 1.73 million units, a year-on-year increase of 49%. Behind this series of figures, is the vigorous pulse of the entire industry, the fierce competition of oligopolistic enterprises, and the strong rise of new power car companies, jointly writing a magnificent chapter in the new energy passenger car market.
1. Market structure: oligopoly and the rise of new forces
At present, China's new energy passenger vehicle market presents a clear oligopoly characteristic, with BYD and Tesla China continuing to dominate. BYD's wholesale sales of new energy passenger vehicles exceeded 310,000 units in February, continuing to lead the market. Its success is not only due to its leading position in battery technology, but also due to its continuous investment in intelligent driving technology. In 2024, BYD will integrate the R&D team to launch the "Eye of the Gods" high-end intelligent driving system, which will be installed on a variety of models. Tesla's wholesale sales in China in February were 30,688 units, ranking sixth. Despite the decline in sales, Tesla remains highly competitive in terms of technological innovation and brand influence, and its continuous innovation in autonomous driving technology and battery technology has allowed it to maintain its leading position in the global market.
New automakers such as Xpeng, Li Auto and Leapmotor also performed well, ranking in the top 10 with sales of 30,453 units, 26,263 units and 25,287 units, respectively. The rapid rise of these companies with intelligent and high-performance products has injected new vitality into the market. With its forward-looking layout in artificial intelligence technology, Li Auto has successfully won the sales championship of new forces.
Figure: Ranking of wholesale sales of new energy passenger vehicles in February 2025
2. Technological innovation: deep integration of intelligence and electrification
Technological innovation is the core driving force for the growth of the new energy passenger vehicle market. BYD's breakthrough in battery technology and intelligent driving technology has enabled it to maintain its leading position in the market. In 2024, BYD will realize the leap from 2D to 3D perception algorithm through data-driven large model technology, and further improve the perception, decision-making and execution capabilities of intelligent driving systems through end-to-end learning. Li Auto is committed to promoting the automotiveization of artificial intelligence, with the vision of "connecting the physical and digital worlds and becoming the world's leading artificial intelligence company". Through artificial intelligence technology, Li Auto is deeply integrating the physical world with the digital world, so that the limited space can be infinitely extended and expanded.
3. Market challenges: the delisting of policy subsidies and intensified competition
With the delisting of new energy policy subsidies, the market has entered a stage of transformation, and enterprises are facing new challenges. The reduction of policy subsidies may lead to an increase in cost pressure on some enterprises, which in turn will affect market competitiveness. At the same time, the intensification of market competition also makes enterprises must continue to invest in technological innovation and product quality to maintain market share. In addition, supply chain stability and cost control are also important challenges for enterprises. In 2023, SAIC-GM-Wuling successfully maintained its leading position in the commercial vehicle segment by optimizing supply chain management. Its continued success in the commercial vehicle segment provides valuable experience for the new energy passenger vehicle market.
4. Future prospects: diversification and globalization
In the future, the new energy passenger vehicle market will show a trend of diversification and globalization. Enterprises will pay more attention to the diversification of products and the global layout of the market. BYD performed well in overseas markets, with a total of 67,025 NEV passenger vehicles sold overseas in February. Its success in overseas markets provides a valuable reference for Chinese new energy vehicle companies. At the same time, enterprises will pay more attention to the deep integration of intelligence and electrification, and enhance product competitiveness through technological innovation. Li Auto's forward-looking layout in artificial intelligence technology has set a new benchmark for the industry. In the future, the deep integration of intelligence and electrification will become the mainstream trend of market development.
In short, the rapid growth and profound changes in the new energy passenger vehicle market not only reflect consumers' concern for environmental protection and sustainable development, but also reveal the fierce competition within the industry and the acceleration of technological innovation. In the future, with the delisting of policy subsidies and the intensification of market competition, enterprises will face more challenges and opportunities. Through technological innovation and market expansion, companies will be better able to meet these challenges and achieve sustainable development.
