Chinese electric vehicle sales are falling even as makers slash prices by up to 1.5 billion VND. Discover the market pressures and what’s next – read more now!
The Chinese electric‑vehicle (EV) market, once a runaway growth story, is now confronting a stark slowdown. Even as manufacturers offer price cuts of up to 1.5 billion VND (about $65,000), sales are falling, signaling deeper structural challenges.
Sales Decline Despite Aggressive Price Cuts
According to the China Passenger Car Association (CPCA), BYD – the sector’s flagship maker – saw a 5.1% dip in nationwide sales over the first 11 months of 2025. November alone recorded a 26.5% plunge versus the same month a year earlier, underscoring a decelerating market momentum.
While the industry slashes retail prices, the price‑sensitivity of Chinese consumers appears to be waning, partly because the overall vehicle fleet is approaching saturation.
Rising Competition from Tech Giants
New entrants from the tech world are shaking up the landscape. Huawei and Xiaomi, leveraging brand trust and ecosystem integration, posted sales growth exceeding 90% YoY. Their rapid ascent highlights a bifurcated market: legacy automakers struggle, while tech‑driven newcomers thrive.
Even the early‑stage U.S.‑listed Chinese EV startups – Nio, Xpeng and Li Auto – failed to break into the top‑10 best‑selling list for the month, illustrating the intensity of domestic competition.
Market Consolidation and Export Drive
Analysts note a deep‑cleaning phase: the top 10 firms now control roughly 95% of the Chinese EV market, a concentration far higher than a few years ago. To offset domestic headwinds, manufacturers are accelerating exports to ASEAN, Europe, Africa and Latin America.
China’s total EV output is projected to hit 27 million units in 2025 – a 17% increase year‑on‑year – potentially overtaking Japan’s projected 25 million. New Energy Vehicles (NEVs) already account for nearly 60% of passenger‑car sales, and China remains the world’s largest auto exporter since 2023.
China’s New Battery Safety Regulation
Effective 1 July 2026, the national GB 38031‑2025 standard will require EV batteries to be “non‑flammable and non‑explosive” under extreme conditions such as crashes, fast‑charging, short‑circuits and high temperatures. The rule also caps toxic‑smoke emissions.
This moves beyond the previous “risk‑warning” approach, aiming to restore consumer confidence and push manufacturers toward safer, higher‑density battery chemistries.
Implications for the Global EV Landscape
Stricter safety standards are expected to raise the technological bar worldwide, as Chinese firms compete on both price and safety. Traditional Japanese and European players may need to tighten their own battery protocols to stay competitive.
Lessons for Emerging Markets
Vietnam’s fast‑growing EV sector is already looking to China’s stringent standards as a benchmark while it develops its own national regulations for charging stations and residential battery storage. Aligning safety standards early could accelerate market acceptance and prevent costly retrofits later.
In summary, deep discounts alone cannot revive Chinese EV sales. Market saturation, fierce competition, policy shifts, and a new focus on safety are reshaping the industry—both at home and abroad.