December 2025 delivered a dynamic finish to China’s electric vehicle year. While growth briefly consolidated, key players like Huawei and Xiaomi reached new sales highs. Huawei’s Hongmeng series neared 90,000 monthly sales, and Xiaomi Auto surpassed 50,000 deliveries. Meanwhile, BYD solidified its export lead, and the race for L3 autonomous driving intensified.
December Sales: A Brief Consolidation Amidst Standout Performers
After sustained rapid growth, the market entered a brief correction. Among 15 major automakers, only 5 achieved both monthly and yearly growth. The average sales figure dipped to 94,427 units, largely due to slight declines from top-tier leaders like BYD and Geely. However, the median sales figure actually rose, driven by outstanding performances from third-tier brands.
New Highs and Rising Thresholds
Several brands set new monthly records, particularly in the mid and lower tiers. Zeekr, Denza, and NIO’s Firefly brand reached historic highs. The market’s competitive threshold continued to rise; no major automaker sold fewer than 30,000 vehicles in Q4. Furthermore, the number of brands exceeding 50,000 monthly sales increased from five to seven, including Leapmotor, Wenjie, and Xiaomi.
2025 Full-Year Results: Only 5 Automakers Hit Targets
With the year concluded, the final scorecard is clear. Of 14 automakers that set annual targets, only XPeng, Geely, Changan, Xiaomi, and Leapmotor met their goals. Others, like Li Auto and Aion Hyper, achieved less than 60% of overly ambitious targets. Despite this, China’s EV momentum was undeniable. Four automakers sold over 1 million units annually, and BYD’s pure EV sales (2.26 million) surpassed Tesla’s global figure for the first time.
The Global Export Shift
China’s role as an auto export powerhouse strengthened. November 2025 saw monthly exports exceed 700,000 vehicles for the first time. For the full year, exports were poised to break 7 million. Chery led in December exports, but BYD’s overseas sales soared past 130,000 for the second consecutive month—a dramatic rise from 30,000 monthly at the year’s start. BYD is expected to become the top Chinese automaker for global exports in 2026.
The L3 Autonomous Driving Race Heats Up
A major December focus was the commercialization of L3 conditional autonomous driving. After the Ministry of Industry and Information Technology issued its first permits, manufacturers rushed to apply. Changan claimed the first official L3 license plate, while BYD, BAIC BluePark, and Seres also announced permits or extensive testing. New players like XPeng and Xiaomi obtained L3 road test licenses in Guangzhou and Beijing, respectively. This sets the stage for intelligent driving to become a key 2026 battleground.
Huawei’s Ecosystem Power vs. Xiaomi’s Growing Pains
Huawei’s Hongmeng series reached 89,611 sales in December, fueled by ecosystem expansion to partnerships with five automakers, including SAIC. Its main Wenjie brand held strong in the premium segment with over 53,000 sales. Conversely, Xiaomi set a new high above 50,000 deliveries annually, reaching 410,000 units for 2025. However, it faced a growing public opinion crisis related to safety incidents and communication, presenting a key challenge for 2026.
The Resurgence of NIO and XPeng Through Price Cuts
Once-dominant new forces NIO and XPeng were pushed to the second tier by Huawei and Xiaomi’s buzz. Their response? A full push into lower-priced segments. This strategy proved successful, with both brands now achieving monthly sales around the 40,000 mark, demonstrating that competitive pricing remains a powerful tool in China’s crowded EV market.
Conclusion: A Market Poised for Global Impact
December 2025 underscored the vibrancy and complexity of China’s EV sector. While growth normalized, innovation and competition accelerated. With strong policy support continuing into 2026, the focus shifts from sheer volume to technological sophistication (like L3 autonomy) and global expansion. Chinese automakers, having conquered scale at home, are now firmly set on reshaping the global automotive landscape.
