Chinese EV manufacturers reported mixed delivery figures for May 2025 amid a price war affecting the industry.

Leapmotor, supported by Stellantis, delivered a record 45,067 vehicles, a 148% year-on-year increase, boosted by over 13,000 sales of its updated C10 SUV priced at 122,800 yuan (US$17,056).

Aito, backed by Seres, also hit a record with 44,454 deliveries following the launch of its ultra-luxury Maextro S800 sedan at 708,000 yuan (US$98,336).

BYD led the market with 376,930 vehicles sold, contributing to a 14.1% year-on-year increase, despite cutting prices on 22 models and denying allegations of financial pressure on a dealership.

Xpeng’s May deliveries fell slightly to 33,525 units from April but still reflected 230% year-on-year growth, with new Mona M03 Max and Plus models launched late May.

Xiaomi maintained over 28,000 deliveries, announcing a new YU7 luxury SUV for July.

Other makers saw modest growth: Li Auto delivered 40,856 vehicles (16.7% YoY increase), Zeekr 18,908 (up 1.6%), and Nio 23,231 (13.1% increase), with Onvo, Nio’s family brand, hitting its best performance this year at 6,281 units.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ China’s EV market mirrors classic industry consolidation patterns

The Chinese EV industry is showing clear signs of consolidation after years of explosive growth and new entrants.

BYD’s dominance with 376,930 cars sold in May and 31.4% overall market share in 2024 reflects how the market is concentrating around a few major players 12.

Meanwhile, mid-sized manufacturers like Leapmotor (with 148% year-on-year growth) are fighting for relevance through rapid scaling, while numerous smaller players struggle to maintain momentum.

This pattern resembles historical consolidation in other maturing industries, such as automobiles in the early 20th century, where an initial proliferation of competitors was followed by a shakeout period.

The China Association of Automobile Manufacturers’ urgent call to end the price war highlights the existential threat facing smaller manufacturers who lack the scale economies and capital reserves to survive prolonged discounting 3.

Industry experts increasingly view the current price competition as the beginning of a major restructuring rather than a temporary market condition.