I. Overview of the Overall Market
Sales Volume: According to data from the CPCA (China Passenger Car Association), the wholesale sales of new energy passenger vehicles in China reached approximately 1.18 million units in July 2025, marking a 25% year-on-year increase but a 4% month-on-month decline. From January to July, cumulative wholesale sales totaled 7.63 million units, reflecting a 35% growth YoY.
Market: Policy subsidies across regions have played a significant role in driving sales, with consumer purchasing confidence continuing to strengthen. The market has exhibited a "busier-than-expected off-season" trend. Some automakers have effectively boosted sales through strategies such as launching new models and promotional campaigns. Additionally, in late July, the NDRC (National Development and Reform Commission) allocated the third batch of subsidy funds for trade-in programs, which is expected to further revitalize market activity.
II. Performance of Major Automakers
According to the sales data in July, sales of electric vehicle startups continued to show year-on-year growth. Among them, XPeng and Leapmotor experienced relatively rapid increases, while automakers such as Li Auto and GAC Aion saw a year-on-year decline in sales, reflecting intensifying market competition. Notably, despite the sales drop for some brands, the launch of new models is expected to provide further momentum for future sales growth.
Source: Mysteel
BYD: In July, BYD's sales reached 344,000 units, marking an 8.8% month-on-month decline but a slight 0.6% year-on-year increase. Among them, passenger vehicle sales totaled 341,000 units, up 26% YoY. EV sales stood at 178,000 units, surging 40.3% YoY, while plug-in hybrid (PHEV) sales reached 163,000 units, growing 14.8% YoY. Additionally, BYD exported 81,000 EVs in July. From January to July 2025, BYD's cumulative sales hit 2.49 million units, reflecting a 27.4% year-on-year increase.
XPeng Motors: In July, XPeng achieved a record-high monthly delivery volume of 37,000 units, soaring 229.4% YoY and rising 6% MoM. The MONA M03 currently serves as the primary driver of sales. XPeng also unveiled two new models-the XPeng G7 and an all-new XPeng P7-further expanding its product lineup.
Leapmotor: In July, Leapmotor achieved a record-breaking monthly delivery volume of 50,000 units, marking a year-on-year surge of over 126% and a month-on-month increase of 4.4%. This is the first time the company has surpassed the 50,000-unit milestone in a single month, setting a new historical high.
Li Auto: July sales for Li Auto totaled 30,000 units, reflecting a year-on-year decline of nearly 40% and a month-on-month drop of 16%. The primary reasons for the sales downturn include intensified competition in the hybrid vehicle market and sales cannibalization caused by Li Auto's newly launched electric models, which diverted demand from its extended-range electric vehicles (EREVs). The company's first all-electric SUV, the Li i8, debuted on July 29 and is scheduled to begin deliveries on August 20.
III. Summary and Outlook
Overall, with the continuous launch of new models and advancements in technological innovation, the "reshuffling" of the EV market will further accelerate. Ultimately, carmakers that stand out will be those capable of accurately understanding user demands while maintaining a technological edge.
