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Chinese EV startups hit record May sales as price war squeezes rivals

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June 2, 2025
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Chinese EV startups hit record May sales as price war squeezes rivals
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China’s electric vehicle market is undergoing a sharp shake-up, with May data revealing a growing divide between industry frontrunners and struggling startups.

Leapmotor and Aito, both backed by major legacy firms, posted record-breaking monthly deliveries, while others like Nio and Zeekr saw slower growth or monthly declines.

The competitive landscape is being reshaped by steep price cuts and new model launches, all taking place under the shadow of geopolitical trade tensions and mounting concerns of industry-wide debt risks.

Leapmotor, Aito deliver over 89,000 vehicles in May

Stellantis-backed Leapmotor surged ahead with a record 45,067 units sold in May, marking a 148% increase year-on-year.

The automaker introduced an updated version of its C10 SUV on 15 May, priced from 122,800 yuan ($17,045), with over 13,000 deliveries of this model alone. The company’s sharp growth reflects a targeted effort to capture the mid-market EV segment.

Meanwhile, Seres-backed Aito announced via social media that it delivered 44,454 vehicles last month, its best-ever performance.

On 30 May, Aito unveiled the Maextro S800, a high-end sedan priced from 708,000 yuan, aimed at China’s premium EV buyers. The company integrates Huawei technology into its models, helping it stand out amid increased consumer demand for smart features.

Industry leader BYD remained dominant with 376,930 units sold in May. While not a record, this was consistent with its recent monthly performance.

On 23 May, BYD slashed prices across 22 models, including a 20% reduction in its Seagull hatchback to 55,800 yuan. The price cuts triggered a decline in Chinese EV stocks, underlining the industry’s sensitivity to aggressive pricing tactics.

Rising competition, falling margins raise default fears

While the top performers maintained momentum, smaller or younger firms showed signs of slowing. Xpeng reported 33,525 deliveries in May, a drop from 35,045 in April.

However, the firm still recorded 230% year-on-year growth and has now exceeded 30,000 monthly deliveries for seven straight months.

On 28 May, Xpeng launched its Mona M03 Max and Plus models, priced at 129,800 yuan and 119,800 yuan respectively, in an effort to maintain consumer interest.

Xiaomi, the smartphone-maker-turned-EV-player, kept its performance steady with over 28,000 units sold. It teased a new YU7 SUV on 22 May, slated for launch in July.

Li Auto sold 40,856 vehicles, representing a 16.7% increase from May 2023. Geely-owned Zeekr delivered 18,908 cars, up just 1.6% year-on-year, despite offering free driver-assistance features since March.

Nio’s total deliveries dropped to 23,231 vehicles, although this was still a 13.1% increase compared to last year. Its new sub-brand Onvo contributed 6,281 units to the total, marking its strongest month yet.

The mixed performance among smaller players highlights rising investor concern that some firms may face liquidity issues similar to the collapse of Evergrande in the real estate sector.

BYD was recently accused of pressuring its dealer in Shandong over cash flow problems—claims the automaker has denied.

Overseas growth faces new trade barriers

Chinese EV makers are increasingly eyeing global markets, but expansion into the West is facing pushback. The European Union and United States have imposed tariffs on Chinese EV imports, creating a difficult regulatory environment for exports.

According to a report by the South China Morning Post, many companies are now redirecting their focus to emerging markets.

BYD, for instance, officially entered Benin on 24 April through a partnership with CFAO Mobility, marking a strategic pivot to Africa where EV adoption is nascent but growing.

New model launches drive consumer interest

Multiple EV manufacturers released new vehicles in May, highlighting how product innovation is now central to staying competitive.

Leapmotor’s refreshed C10, Aito’s Maextro S800, and Xpeng’s Mona M03 models all reflect efforts to segment the market more sharply—whether targeting value-focused consumers or high-income buyers looking for smart luxury features.

The push to introduce new models is not just about boosting sales volumes—it’s also a defence against razor-thin margins created by the ongoing price war.

As the market matures, product differentiation and brand alliances, like those with Stellantis and Huawei, are becoming more critical for long-term survival.

The post Chinese EV startups hit record May sales as price war squeezes rivals appeared first on Invezz


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