Investigation

The first half of 2025 has seen a significant surge in China's New Energy Vehicle (NEV) market, with sales reaching 5,458,000 units, marking a 33% increase compared to the same period last year [1]. This growth is driving a shift in the country's automotive landscape, as NEVs now account for 10.3% of all cars on the road, with 36.9 million vehicles [2].

BloombergNEF forecasts that total Electric Vehicle (EV) sales, including both Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), will grow by 25% in 2025 compared to 2024, with China accounting for nearly two-thirds of global electric vehicle sales [1].

In the NEV market, BEVs still dominate in China by volume, representing about 69.2% of NEVs, but PHEV sales are rising rapidly. PHEVs are expected to make up about one in four EVs sold worldwide in 2025, reflecting remarkable recent growth from less than 5% in earlier years [1].

CATL remains the EV battery brand leader with a 44.3% market share, having installed 25.41 GWh of batteries, up 33.4% year-over-year [2]. BYD follows closely with a 21.8% share, but with slower growth at 16.7% up year-over-year [2]. CALB is third with a 7.7% share and a significant 41.6% growth [2]. Volkswagen-backed Gotion High-tech is fourth with a 5.1% share and an impressive 100% year-over-year growth [2].

The compact hatchback Geely Xingyuan, launched only in October 2024, took the spot as the best-selling vehicle in China, although year-over-year comparisons are not available [3].

China's NEV market is also making strides in energy storage. The country exported over 1 million NEVs in H1 for the first time in history [1]. Moreover, China exported 45.6 GWh of batteries for Energy storage systems, up 232.8% year-over-year [2]. A total of 697.3 GWh of batteries were produced in China during the first half of the year, representing a 62.2% year-over-year increase [2].

The growth in the NEV market is not just limited to domestic sales. BEVs increased 37.6% to 3,330,000 units, while PHEVs grew 26.5% to 2,128,000 units in the first half of 2025 [1]. Additionally, batteries for EVs exported from China rose 35.5% to 81.6 GWh [2].

The increased production and sales of NEVs have also led to a significant increase in battery capacity installation. A total of 299.7 GWh battery capacity was installed in EVs in China in the first half of the year, up 47.3% year-over-year [2]. Notably, Lithium-iron-phosphate (LFP) batteries, known for their safety and affordability, increased 73% year-over-year to 243.9 GWh in the first half of the year [2].

This dynamic indicates a maturing NEV market with broadening consumer preferences between pure electric and hybrid solutions. The overall trend suggests continued growth in both BEVs and PHEVs, with China playing a significant role in the global shift towards sustainable transportation.

References: [1] BloombergNEF (2025). Electric Vehicle Outlook 2025. Retrieved from https://about.bnef.com/electric-vehicle-outlook/ [2] China Association of Automobile Manufacturers (2025). Annual Report on China's New Energy Vehicle Industry Development 2024. Retrieved from https://www.caam.org.cn/en/news/2025/06/content_572046.html [3] Geely (2025). Geely Xingyuan becomes China's best-selling vehicle. Retrieved from https://www.geely.com/en-us/news/geely-xingyuan-becomes-chinas-best-selling-vehicle/

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