Eliza Wong
China’s EV Landscape Reshuffled
The first half of 2025 brought seismic shifts in China’s electric vehicle market as major players released June delivery figures. Amidst intensifying competition, Leapmotor unexpectedly surged ahead to claim the new energy vehicle crown while NIO, XPeng and Li Auto scrambled to meet Q2 targets. This China EV Midyear Report reveals how aggressive pricing, new model launches, and organizational restructuring are defining the battleground.
Overall market growth slowed significantly in June, with sales momentum hampered by China’s subsidy reductions, consumer hesitation amid price wars, and crowded vehicle launches. Though all major startups achieved second-quarter guidance, strategic repositioning is accelerating ahead of Tesla and BYD’s impending price cuts. With fresh entrants like Xiaomi intensifying pressure, this China EV Midyear Report highlights critical inflection points.
Leapmotor Emerges as Uncontested Leader
The dark horse of China’s EV revolution posted staggering growth, delivering 48,006 vehicles in June—a 138.65% year-over-year increase. This capped six consecutive months of market domination.
Historic Delivery Milestones
– Achieved cumulative delivery of 80,000+ units by mid-June
– First-half total: 221,664 vehicles
– Recorded four consecutive months as top-selling EV startup
Driving this success is rapid product expansion. Following June’s launch of the 2026 C16 SUV, Leapmotor unveiled its B01 electric sedan priced at 100,000-150,000 yuan—directly competing with mass-market leaders like BYD. Senior VP Xu Jun (徐军) told investors: “With new-generation C11 debuting in July and B01 launching, we expect monthly deliveries to exceed 50,000 vehicles next month.”
Profitability Horizon Approaches
Leapmotor aims to leverage scale as it pursues its ambitious annual target of 500,000 deliveries. After achieving quarterly profitability earlier this year, executives confirm a full-year net positive goal—a potential industry game-changer.
Strategic Pivots Reshape Traditional Players
Li Auto Confronts Headwinds
Despite exceeding revised guidance by delivering 108,000 Q2 vehicles (total H1: 203,758 units), Li Auto saw June deliveries dip 24.06% year-over-year. Market dynamics forced significant adjustments:
– Four of six months showed sequential delivery declines
– Restructured leadership combining R&D/sales groups
– President Ma Donghui (马东辉) now oversees “Intelligent Auto” division reporting to Chairman Li Xiang (李想)
Founder Li Xiang (李想) emphasized acceleration: “Sales infrastructure upgrades will support i8 SUV deliveries in July, with the i6 model following in September.”
XPeng Gains Momentum
XPeng notched its strongest quarter ever with 103,181 deliveries (H1 total: 197,189), propelled by consistent sales of economy models:
– P7+ sedan surpassed 62,000 cumulative deliveries
– MONA sub-brand delivered 10,000+ units monthly for 10 straight months
The imminent XPeng G7 SUV launch—slated to challenge Tesla’s Model Y and Xiaomi’s SU7—signals aggressive premium segment expansion.
NIO’s Brand Diversification Payoff
NIO achieved its second-best quarterly performance in history (72,056 Q2 deliveries) through multi-brand segmentation:
– Flagship NIO: 14,593 June deliveries
– Budget brand Ledao: Record 6,400 deliveries
– Entry brand Firefly: Record 3,932 deliveries
Chairman Li Bin (李斌) concurrently rolled out the company’s self-developed Shenji NX9031 5nm autonomous driving chip: “Initial on-road performance validates our chip strategy.”
Technology versus Tactics
Product Pipeline Wars
With innovation cycles compressing, automakers are flooding the market:
– XPeng: July G7 premiere
– Leapmotor: July C11 refresh
– Li Auto: Dual i-Series EVs
– NIO: Q4 ES8 refresh + Ledao L80/L90
The China EV Midyear Report confirms premium models now average >4 launches monthly—triple Q1 2024’s rate.
Infrastructure Advancements
NIO highlighted its battery-swap network expansion as crucial for sustaining momentum. Li Auto’s restructuring prioritizes integrated software/hardware development amidst intensifying autonomy races.
Outlook Through December
Profitability Challenges
As Leapmotor barrels toward full-year profitability, rivals face mounting pressure:
– NIO targets Q4 breakeven
– XPeng pushes toward Q4 profit
– Li Auto prioritizes sales infrastructure investments
The China EV Midyear Report suggests narrowing losses as capex shifts toward software—Li Xiang (李想) confirmed increasing AI resource allocation.
Market Concentration Concerns
Growing bifurcation emerged as Leapmotor outpaced Li Auto by 17,906 H1 deliveries—nearly three times 2024’s gap. Auto analysts warn: “Carmakers lacking distinctive tech advantages risk marginalization against Tesla/Xiaomi/BYD price assaults.”
Winners Emerge in EV Survival Race
The China EV Midyear Report confirms Leapmotor’s breakout dominance through mass-market positioning and rapid scaling. The company’s trajectory could permanently disrupt China’s “Wei Xia Li” hierarchy. Meanwhile, tech milestones by NIO and Li Auto highlight deepening investment moats.
With deliveries aligning with targets, execution success will define second-half fortunes. As XPeng enters premium bracket and NIO expands entry-level offerings, market repositioning accelerates. Tesla’s expected midsummer price cuts loom as critical variables.
Follow upcoming quarterly earnings reports through August—particularly Leapmotor’s Q2 results on August 15—for definitive profitability signals. Subscribe to Yuan Trends for live delivery updates as July numbers hit August 1.
