Electric Vehicle Sales in China: What’s Fueling the Sudden Drop in June, and Which Brands Are Defying the Trend?
China’s leading EV makers, including Tesla, Nio, and BYD, see sharp insurance registration drops as June 2025 kicks off. Find out who’s winning.
- BYD insurance registrations: 54,850 (down 8.3% WoW)
- Tesla insurance registrations: 8,640 (down 33.5% WoW)
- Leapmotor registrations: +4.8% WoW growth, bucking the trend
- Xpeng May deliveries: +230% YoY
China’s booming electric vehicle (EV) sector hit the brakes in early June 2025, as fresh figures reveal a sweeping slowdown among the industry’s biggest names. Data compiled by automotive analysts and observers on Weibo show that the first week of the month brought dramatic, double-digit insurance registration declines across nearly all major brands — including giants like Tesla, Nio, BYD, and Leapmotor.
This trend comes as the market cools after a competitive spring surge, intensifying discount wars and signaling shifting momentum as new models prepare to debut.
Why Did China’s EV Insurance Registrations Plunge in June?
Seasonality and intense price competition combined to throttle insurance registrations in early June. Car deliveries almost always slow at the start of the month after brands push hard at month’s end for sales milestones and incentives. In 2025, deep discounts from BYD and others spurred an end-of-May rush, leaving early June looking lean.
- Nio Inc saw registrations for its Nio, Onvo, and Firefly brands plummet 19.6% week-over-week to 4,340 units.
- Tesla China plunged even further, down 33.5% to 8,640 vehicles registered.
- Xpeng tumbled 42.6%, and Li Auto slipped 31.1% as well.
- BYD, though still dominating, dropped 8.3% week-over-week but maintained an industry-leading 54,850 units registered.
The only bright spot? Leapmotor, which recorded a rare 4.8% week-on-week increase — the outlier in a sea of red numbers.
How Are Top Brands Navigating Turbulence in 2025?
Despite the slowdown, leaders are using different strategies to stay competitive:
- BYD launched aggressive discounts across its Dynasty and Ocean lines, triggering an industry-wide price war. Their May sales rose to 382,476 units, up 15.3% year-on-year.
- Tesla leverages Shanghai as an export hub, shipping 23,074 vehicles abroad in May alone, a 33% jump year-on-year — even as domestic retail sales slumped 30% compared with 2024.
- Xpeng and Li Auto both posted robust year-on-year delivery growth, with Xpeng up 230% and Li Auto up over 16% in May.
- Nio’s Onvo sub-brand surged 43% in May deliveries from April, while Firefly completed its first full delivery month at 3,680 units.
Xiaomi also accelerated its EV momentum by delivering over 28,000 units in May and announcing the YU7 SUV, set to launch in July.
Q&A: What’s Next for China’s EV Market?
Q: Will EV insurance registrations recover later this month?
Most analysts expect recovery in the second half of June as new models arrive and automakers seek to hit quarterly targets.
Q: Which brands are poised for growth?
Leapmotor’s record-breaking deliveries, Zeekr’s steady momentum, and Xiaomi’s new models suggest these challengers could close the gap with industry leaders by year’s end.
Q: What about international competition?
Tesla’s export strategy continues to pay off, but domestic titans like BYD, Nio, and Aito — Huawei-backed — are ramping up innovation and expanding globally.
How Can Buyers and Investors Respond to These Trends?
- Monitor brand pricing and promotional offers, especially from BYD, Nio, and Xiaomi.
- Watch for the launch of new models like Xiaomi’s YU7 and Zeekr’s coming updates.
- Track official sales figures and insurance registrations to spot early rebounds.
- Keep an eye on regulatory and subsidy changes via sources like CNEV Post and the China Passenger Car Association.
Stay Ahead: Don’t Miss the Next Wave of EV Disruptions!
- Subscribe to official automaker channels and news outlets.
- Set alerts to follow industry reports, including monthly insurance and delivery numbers.
- Compare key brands’ price cuts and new model announcements before making a purchase or investment.
- Revisit top sources like BYD, Nio, and Xiaomi EV for real-time updates.
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