Lead

As the first week of 2025 dawned, the domestic new energy vehicle market ignited a fierce sense of competition. Statistical charts across various dimensions revealed significant moves by Geely and XPeng, challenging the dominance of BYD and Li Auto, respectively.

Produced by | Heyan Yueche Studio

Written by | Zhang Dachuan

Edited by | He Zi

Total Words: 2325

Reading Time: 4 minutes

At the outset of the new year, the domestic auto market witnessed subtle shifts in rankings, with ownership changes emerging as early as the first week.

Statistics indicate that Geely's Galaxy Starship 7 EM-i outperformed BYD's Song family to claim the top spot in the sales ranking of A-segment plug-in hybrid SUVs in the Chinese market for the first week of the year. Similarly, in the A0-segment pure electric vehicle sales ranking, Geely's Xingyuan emerged victorious. In the realm of new force automakers, Li Auto, which garnered significant attention in 2024, was surpassed by XPeng, relinquishing its title as the weekly sales champion of new force brands, a position it had held for 36 weeks.

△ Geely's Galaxy Starship 7 EM-i claims the sales crown in the A-segment plug-in hybrid SUV category in the first week

Competition Between Geely and BYD Heats Up

In 2024, BYD sold 4.2721 million vehicles, achieving a commanding lead not only in the domestic market but also globally.

△ BYD set a new sales record for domestic automakers in 2024

For Geely, it is challenging to accept that BYD has usurped its former dominant position in the fuel vehicle era. However, after years of focused development, Geely has amassed core competitiveness in areas such as electric technologies (batteries, motors, and electronic controls) and intelligent driving, launching a series of competitive new models. Notably, the three main models Geely launched in 2024 – the Geely Galaxy E5, Geely Xingyuan, and Geely Galaxy Starship 7 EM-i – have become Geely's trump cards in challenging BYD. Sales figures affirm that Geely Xingyuan and Geely Galaxy Starship 7 EM-i are fully capable of competing with BYD models in the same segment. Specifically, Geely Xingyuan rivals BYD Dolphin and BYD Seagull, while Geely Galaxy Starship 7 EM-i aims to tap into the market share of BYD Song, currently the backbone of BYD's sales.

△ Galaxy E5, Xingyuan, and Galaxy Starship 7 EM-i become Geely's trump cards in challenging BYD

Overall, while Geely Galaxy Starship 7 EM-i surpassed BYD Song family in sales ranking, its lead over Song Pro is slim, almost within the statistical error margin. Furthermore, BYD Song family's group advantage with three models is still evident. Galaxy L7, ranking behind BYD Song family, has a noticeable sales gap compared to BYD family models ahead of it. Therefore, while commendable, Geely's initial week atop the charts for Galaxy Starship 7 EM-i will still face numerous challenges in shaking BYD Song family's position, even in the niche market of new energy A-segment SUVs.

△ BYD's group advantage is still evident

Intensified Rivalry for the 2025 New Force Champion

XPeng's ascension to the top of the weekly sales ranking of new force automakers, surpassing Li Auto, came as a surprise to many. However, given that this ranking was released by Li Auto, it carries a certain degree of credibility.

Comparing sales figures from the last week of 2024 and the first week of 2025, Li Auto's sales dropped from 13,400 units to 6,700 units, whereas XPeng's decline was slightly smaller, falling from 10,100 units to 7,000 units during the same period. This shift allowed XPeng to establish its advantage and reclaim the title of sales champion among domestic new force automakers after years.

△ XPeng's M03 and P7+ models are hot sellers

XPeng's success is closely tied to the popularity of its M03 and P7+ models. As XPeng's entry-level sedan, M03's high cost-effectiveness has unlocked the key to sales growth. With increased deliveries, XPeng has successfully navigated its challenges. In 2025, XPeng will also venture into the extended-range market. Considering domestic consumers' preference for hybrid models, XPeng's sales are poised to reach new heights. Conversely, after completing the launch of its extended-range vehicle lineup, Li Auto's focus this year has shifted to multiple pure electric models. The disappointing sales of MEGA in 2024 once put Li Auto in an awkward situation of layoffs. Therefore, to excel in electric vehicle sales in 2025, Li Auto will undoubtedly need to introduce some new "trump cards".

In fact, besides XPeng and Li Auto, other domestic new force automakers in 2025 will also go all in to secure a place in the domestic auto market. AITO, Zeekr, Xiaomi, NIO, and AVATR are not only vying for rankings but also fighting for survival. After all, the examples of HiPhi, JYEV, and NIO Auto are right in front of them. NIO, which has launched two sub-brands – Ledo and Firefly, is facing a do-or-die situation in 2025. If sales continue to stagnate, NIO will be in real danger.

△ NIO, which has launched two sub-brands – Ledo and Firefly, is facing a do-or-die situation in 2025

2025: Beyond Price Wars

One week of sales figures alone is insufficient to indicate a change in the overall trend of the domestic auto market. However, judging by the momentum, the potential of Geely and XPeng cannot be underestimated, and competition in 2025 will only intensify compared to 2024.

In 2025, both Geely and XPeng have set relatively aggressive sales targets. With the merger of Zeekr and Lynk & Co, and the integration of Geometry into Galaxy, Geely has already delivered two punches, particularly with the Galaxy series aiming for 1 million sales in 2025, becoming Geely's main force in challenging BYD. As for XPeng, it will expand from pure electric vehicles to the extended-range market, with considerable potential for sales growth in the future.

△ The Galaxy series is Geely's weapon in challenging BYD

Neither BYD nor Li Auto will stand idly by. If the sales trend in the first week persists, Li Auto and BYD may initiate a new round of price wars, leading to another fierce competition in the domestic auto market. BYD's advantage in cost control through self-developed and self-manufactured three electric systems is difficult to shake in the short term. Meanwhile, Li Auto's gross profit margin leads among domestic new force automakers, giving it more confidence to engage in price wars than other new forces.

△ BYD's cost advantage is difficult for competitors to surpass in the short term

Apart from price wars, for BYD to grow more steadily, it needs to swiftly boost sales of FANGCHENBAO, Denza, and NEVS. Only with rapid sales growth of these three sub-brands can BYD's future performance be more stable. In the mid-to-high-end segment, the integrated Zeekr and Lynk & Co give Geely an edge over BYD. Moreover, Geely's portfolio includes Volvo, Lotus, and Smart, which are European brands with high positioning. Li Auto, in the extended-range market, must not only withstand the impact from AITO and NIO but also face competition from traditional automakers launching long-range plug-in vehicles. In the pure electric market, it must strive to seize market share from brands like NIO, XPeng, and Tesla, a feat unlikely to be achieved solely through price wars.

△ BYD urgently needs to boost sales of FANGCHENBAO, Denza, and NEVS

Commentary

Automakers must closely monitor market changes and promptly adjust their sales policies at the sales end. At the R&D end, they should launch more competitive models faster and seek breakthroughs in underlying technologies in intelligent driving, intelligent cabins, and electric technologies. No automaker can afford to relax in 2025; each must remain vigilant. In the first week of the new year, the domestic auto market was already brimming with a strong sense of competition. Even BYD, the sales champion among domestic automakers in 2024, and Li Auto, the sales champion among new forces, are facing formidable competitors. Whether they can successfully defend their positions in 2025 remains uncertain.

(This article is originally created by "Heyan Yueche" and cannot be reproduced without authorization)