Show notes
Welcome to pilot episode, or probably better to call it Episode Zero of EV News China – a limited-run of podcasts I’ll be doing from next Monday and then every weekday in July.
I’ll be sharing insights into China's EV revolution for listeners worldwide.
I'm Martyn Lee, and EV News China is not replacing EV News Daily. Let me say first up, I’ll be here with the usual global take on the EV industry. Instead, this will be series of bonus shows, which I hope will be essential listening for anyone interested in, or doing business with, the world's electric vehicle superpower.
I wanted to drop a pilot episode to explain my thinking, and what a moment to launch.
China has just reached an historic milestone that changes everything in the global automotive industry.
In May 2025, plugin electric vehicles captured 53% of China's passenger car market – meaning electric vehicles are now outselling traditional gasoline cars for the first time in history.
Think about that for a moment. The world's largest car market has just tipped electric. This isn't a prediction anymore – it's reality.
After 7 years of doing this podcast, pretty much every day apart from some breaks when we had two new additions to our family, or some mental health breaks, I’ve been doing this 7 days a week. And I can’t tell you a time when I’ve been more fascinated about how the rest of the world views the Chinese EV market. And in many cases, how it’s still a blind spot for them.
The Numbers That Matter
Let me put this in perspective with some hard data that business leaders need to understand.
Plugin vehicle sales in China topped one million units in May alone – in a market of 1.9 million total passenger vehicles. That breaks down to 31% pure battery electric vehicles and 22% plug-in hybrids and range extenders.
For the year so far, China has already sold over 4.3 million plugin vehicles, putting the country on track to exceed 10 million units by year-end – in China alone. To put that in global context, that's more than the rest of the world combined.
The leader? BYD dominates with 28.9% of the plugin market, delivering over 376,000 vehicles in May – a 14% year-over-year increase. Meanwhile, Tesla's China market share has dropped to just 4.6%, ranking fifth behind Chinese competitors.
The Tesla Reality Check
Speaking of Tesla, the numbers tell a sobering story for Elon Musk's company in China. Tesla sold about 58,000 vehicles in China during April 2025, down 6% from the previous year. More concerning, Tesla's retail sales to Chinese customers in the first eight weeks of Q2 2025 dropped 23% year-over-year.
This reflects a broader trend – Chinese consumers are increasingly choosing domestic brands. Tesla's China market share in the BEV segment fell from 11.15% to 6.36%, while Chinese rivals like XPeng delivered 33,525 vehicles in May, up 230% year-over-year.
The Financial Impact
The financial implications are staggering. BYD doubled its Q1 2025 net profit to 9.15 billion yuan, with operating revenue reaching 170.36 billion yuan, up from 124.94 billion yuan the previous year.
But it's not just about one company. The Chinese EV trio – NIO, XPeng, and Li Auto – are expected to see explosive growth in 2025:
NIO deliveries expected to double to 450,000 units
XPeng projected to reach 400,000 units, up 110%
Li Auto forecasted at 700,000 units, up 40%
These aren't small startups anymore – these are major industrial players reshaping global automotive supply chains.
The Technology Revolution
What's driving this transformation isn't just price – it's technology. Chinese companies are leading in areas that will define the future of mobility.
Solid-state batteries are moving from lab to production. China's Ministry of Industry and Information Technology included all-solid-state batteries in core industrial standards for the first time in 2025, signaling this technology has moved from corporate R&D to national strategic priority.
Artificial intelligence integration is accelerating rapidly. Over two dozen Chinese automakers, including BYD, are incorporating DeepSeek AI technology into their vehicles. BYD plans to offer preliminary self-driving capabilities in nearly all its models at no additional cost – making autonomous driving features accessible to mass-market consumers.
Ultra-fast charging is becoming standard. Chinese companies like XPeng offer five-minute charging delivering 210 kilometers of range, while the industry moves toward 800V architectures that handle high current flow for rapid charging.
Global Trade War Implications
But this technological leadership is creating geopolitical tensions. The United States now imposes a 247.5% tariff on Chinese EVs – that's 145% from recent tariffs, plus 100% from Biden-era levies, plus standard duties. Anyone trying to import BYD's $7,800 Seagull to the US would pay an extra $19,300 in tariffs.
Europe is taking a different approach, but Chinese brands still doubled their European market share in April 2025 despite tariffs reaching up to 35%. BYD faces a 17% EU tariff, yet still recorded 400% sales growth in the UK, where no tariffs apply.
The contrast is stark: in tariff-free markets, Chinese EVs are winning on merit.
The Infrastructure Foundation
Supporting this EV revolution is massive infrastructure investment. China aims to complete an expressway charging network by end of 2025, with over 5,800 out of 6,000 expressway rest areas already equipped with charging facilities.
The government has extended its vehicle trade-in subsidy scheme for 2025, offering up to RMB 20,000 for EV purchases when scrapping older vehicles. This policy has already attracted over 4 million applicants in its first six months.
What This Means for Global Business
So what does this mean for you – someone who might be an enthusiast of the EV transition, or maybe you work in the business of EVs or charging?
First, China is no longer an emerging EV market – it's the dominant one. Any global automotive strategy that doesn't account for Chinese competition is already obsolete.
Second, the technology gap is widening in China's favor. Chinese companies can design and launch new models in six months while German competitors require two years.
Third, supply chain dependencies are shifting. China controls a large share of battery-grade chemical production, and Chinese companies are rapidly expanding globally – BYD now operates in over 70 countries.
Looking Ahead
Over the coming 20 episodes of EV News China, during this limited run of podcasts, we'll dive deeper into these trends. We'll analyze quarterly earnings, decode policy changes, and track the technological innovations reshaping not just China, but the global automotive industry.
We'll help you understand what these developments mean for your business, your investments, and your strategic planning. Because in a world where China has achieved 53% EV market share, the question isn't whether electric vehicles will dominate – it's how quickly the rest of the world can adapt.
That's all for today's pilot episode of EV News China. Starting Monday, I’ll be here every weekday with the latest developments from the world's electric vehicle superpower. Sometimes it will just be a news show, sometimes we’ll dive into a specific topic.
Remember, EV News China is essential listening for anyone interested in, or doing business with, the world's electric vehicle superpower.