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As the Chinese government winds down its EV incentives, China’s fiercely competitive EV market is showing signs of slowing down. EV sales in China fell for the first time in almost two years last month, the first time since February 2024.
In the midst of this downturn, Chinese EV maker Geely has emerged as a clear frontrunner, surpassing BYD’s sales for the second month in a row. This two month lead comes just months after BYD was announced as the global-leader in EV sales for 2025, beating historical rival Tesla.
Recent filings show Geely delivered roughly 76,000 more vehicles than BYD over the first two months of the year, a notable reversal at a time when overall demand has waned at home.
BYD’s deliveries fell sharply during the same period, highlighting broader challenges facing China’s auto sector. The market, the largest in the world, has been grappling with the rollback of government purchase incentives that once stoked rapid growth.
A longer-than-usual Lunar New Year holiday further disrupted showroom traffic, contributing to weaker early-year sales across several major brands.
Geely’s relative resilience is in part testament to the company’s willingness to adapt and respond to a changing market. Founded by billionaire Li Shufu, the company has undergone a radical restructuring designed to simplify its portfolio and sharpen its focus.
Popular offerings such as the Xingyuan compact hatchback, which emerged as China’s top-selling car last year, have helped the automaker capture buyers, responding to the shifting preferences of the domestic market.
Several manufacturers — including Tesla and BYD — are on the lookout for their own ways to reignite slumping sales, including introducing extended financing plans lasting up to eight years. While such incentives may support near-term sales, analysts warn they could squeeze already thin profit margins and divert resources from research, development and overseas expansion.
As competition intensifies it is clear that Geely’s simplified lineup is capturing the hearts of Chinese consumers. BYD may be making headway overseas, but at home, Geely is now first in class.
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