Xpeng Motors emerged as China’s top-selling electric vehicle startup in January, bumping long-time leader Li Auto off the top spot in the traditional low season, as the company continues to see growing demand for its budget yet intelligent cars.
The monthly results have greatly boosted the confidence of its chief executive He Xiaopeng, who attended a government meeting in the southern Chinese city of Guangzhou on Wednesday, saying he expected Xpeng’s annual deliveries to double this year, local media outlet 21st Century Business Herald reported.
Why it matters: The sales figures mark the latest development in the fiercely competitive Chinese auto market, where established players such as BYD and Tesla have been cutting prices and offering discounts to defend their market share, putting pressure on smaller brands amid slowing overall demand.
- Having been the best-selling EV startup in China for two consecutive years through 2024, Li Auto kicked off 2025 with a larger-than-average sales decline, as year-end promotional activities had front-loaded demand in December last year. The company is also seen as a follower in autonomous driving – a race led by Tesla as well as local rivals such as Huawei and Xpeng.
Details: Guangzhou-headquartered Xpeng said its January deliveries more than tripled from a year earlier to 30,350 vehicles, of which more than half were its budget sedan MONA M03; its figures were also buoyed by strong demand for its P7+ sedan, which competes with the Tesla Model 3 in China.
- Li Auto said its monthly sales plunged by nearly half from December to 29,927 units in January, compared with Xpeng’s month-on-month decline of 17.3%, without specifying the reason. China’s biggest EV startup offered three-year and 0% interest financing for its customers through the month of December.
- Meanwhile, the passenger car sales of EV giant BYD fell by 42% from December to 296,446 units in January. Some of the other major Chinese EV makers, such as NIO, Leapmotor, and Xiaomi, also reported a sharp month-on-month decline in January of 55.5%, 40.8%, and 20%, respectively.
Context: January and February are traditionally low seasons for automakers in China, when people in the country mark the Chinese New Year with a seven-day official holiday.
- Sales of China’s New Energy Vehicles (NEVs), including all-electrics and plug-in hybrids, increased 26% year-on-year but fell 39% month-on-month during Jan. 1-19, according to figures from the China Passenger Car Association (CPCA).
- Li Auto turned a full-year profit for the first time in 2023, when the company delivered 376,030 vehicles and was ranked seventh in the list of top-selling NEV manufacturers by the CPCA, following established rivals including BYD, Tesla, and Geely. Its annual deliveries surpassed 500,000 units last year.
READ MORE: China’s EV startups reportedly set ambitious sales targets for 2025
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