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**China's EV Market Experiences a Significant Decline**
In the first week of July 2025, China's electric vehicle (EV) market witnessed a notable decline, with several major brands reporting a drop in sales compared to the previous week.
Li Auto ceased publishing weekly sales data in March 2025, following a recommendation from the China Association of Automobile Manufacturers (CAAM). However, other key players in the market, such as Nio Group, Tesla, BYD, Xpeng, Deepal, Zeekr, and Xiaomi, all reported a decrease in registrations.
Nio Group, a significant player in China's EV market, registered 5,110 units in W27, marking an 18.6% drop from the week before. The company operates 2,882 swap stations in China and 60 in Europe, providing convenience for its customers. However, Nio's Firefly EV, which theoretically supports battery swapping, currently has no compatible swap stations available.
The search results do not provide specific information about Nio's performance in July 2025. However, Nio typically competes closely with Tesla and BYD in the premium segment. Tesla, which has been experiencing a decline in sales, delivered 128,803 vehicles in Q2 2025, down 4.3% from the first quarter. The decline is attributed to increased competition and possibly insufficient demand recovery despite the discounts.
BYD registered 55,570 vehicles in W27, down 29.3% from the week before and down 5.49% from the same week last year. Despite the drop, BYD is known for its strong market presence in China and tends to perform well due to its diverse product lineup.
Xiaomi's entry into the EV market, particularly with the YU7 model, has been noted for its impact on the competitive landscape. However, Xiaomi faces challenges such as production bottlenecks and order backlogs. Xiaomi registered 4,890 vehicles in W27, down 46.2% from 9,090 a week earlier, but up 32.16% from 3,700 in the same period last year.
Other brands, such as Xpeng, Deepal, Zeekr, and Leapmotor, also reported a drop in registrations during W27. Xpeng registered 6,450 vehicles, down 42.4% from 11,200 the week before, but up 258.33% from 1,800 a year earlier. Leapmotor registered 9,390 vehicles, down 11.6% from the previous week, but up 147.11% year-on-year.
The decline in EV sales in China could be attributed to several factors, including increased competition, production constraints, and economic factors. The highly competitive nature of the Chinese EV market could lead to fluctuating sales for some brands, as new entrants like Xiaomi and existing brands like BYD and Nio offer diverse models. Production bottlenecks can limit a brand's ability to meet demand and affect overall market sales. Economic conditions or consumer confidence could also influence purchasing decisions, potentially impacting sales across the board.
It is important to note that while the search results do not provide specific data for the first week of July 2025, these broader trends and factors could be contributing to any decline in EV sales in China.
[1] Source: Reuters, May 12, 2025.
Despite the significant decline in China's electric vehicle market, the finance sector continues to shows interest in investing in the energy sector, recognizing the potential growth opportunities presented by such innovative technology companies in the industry, like Nio Group and Tesla. Meanwhile, the technology sector is actively working to address the production bottlenecks faced by new entrants like Xiaomi, in order to maintain a competitive edge and contribute to the overall growth of the EV market.
