• BYD’s record deliveries cements status as a best-selling brand

• Carmakers face slowdown in exports, uncertain domestic outlook

Zhejiang Geely Holding Group Co.’s premium electric car brand Zeekr saw sales climb 87% to 222,123 last year, missing its 230,000 goal.

Chinese electric vehicle makers led by BYD Co. saw a late-2024 sales boom that’s set to give way to another bruising year as carmakers face risks to demand both at home and abroad.

Industry heavyweight BYD shipped a record 4.27 million EVs and plug-in hybrids last year. Meanwhile, Li Auto Inc. delivered more than 500,000 cars, and Stellantis NV partner Leapmotor doubled sales to more than 293,700.

Other popular marques, including Nio Inc. and Xpeng Inc., fell short of their targets despite the end-of-year pick up in demand. Zhejiang Geely Holding Group Co.’s premium electric car brand Zeekr saw sales climb 87% to 222,123 last year, missing its 230,000 goal. The wider Geely auto group, including its namesake brand, delivered 2.18 million cars, up 32% year-on-year.

The mixed results signal another year of fierce competition for the world’s biggest auto market, which has endured a relentless price war that’s seen major manufacturers carve out a bigger share while smaller players are being pushed to the brink. Growing trade tensions with key trading partners like the European Union have hit China’s EV exports and the country’s top industry group has urged the government to extend concessions for trading in older vehicles to spur domestic sales.

A customer tries the dashboard onboard a Zeekr 007 electric vehicle at the Zeekr Center in Shanghai.

Those uncertainties are clouding the start of 2025, despite the better-than-expected 2024 result. China’s total passenger car retail sales may increase just 2% to 23.4 million vehicles in 2025, from 5.7% growth last year, according to Cui Dongshu, secretary general of the country’s Passenger Car Association.

“We have seen a rebound of more established automakers, such as Geely and BYD, and this momentum may continue in 2025, as well as strong growth from companies like Xiaomi,” he said. “Exports are facing more pressure with geopolitical issues, and therefore domestic sales are expected to play a more important role.”

That’s likely to put even more pressure on Chinese carmakers to roll out newer models or tech-laden offerings that are popular with the country’s increasingly picky buyers.

An Aito 9 electric vehicle at the Paris Motor Show in October.

Brands under Huawei Technologies Co.’s Harmony Intelligent Mobility Alliance, including Aito, collectively delivered more than 444,000 cars last year. After smashing through its initial delivery target of 100,000 electric SU7 sedans, Xiaomi Corp. Chairman Lei Jun said the sales target for its EV division will be lifted to 300,000 for 2025, with an SUV slated for launch this year.

Legacy automakers also risk losing further market share. SAIC Motor Corp., the state-owned partner of Volkswagen AG, and Guangzhou Automobile Group Co., the partner of Toyota Motor Corp., are expected to see their 2024 deliveries decline by 20%.