Leapmotor Leads, Nio Surges Past Li Auto in China EV Shake-Up
A dramatic reshuffling in China’s electric vehicle market saw lower-cost producers surge ahead in August, while some premium-focused startups faltered, signaling a new phase of intense competition in the world's largest auto market.
Leapmotor established a commanding lead among startups, delivering over 57,000 vehicles. Meanwhile, Nio hit a record high, with sales driven by its new mass-market brand, allowing it to overtake slumping rival Li Auto for the first time.
The sharp divergence in performance underscores the pressure on automakers from a persistent price war and a flood of new models. Li Auto’s deliveries plummeted more than 40% year-on-year, while Huawei-backed Harmony Intelligent Mobility Alliance (HIMA) also posted a slight monthly decline.
The August results set a volatile tone as carmakers head into the traditional “Golden September, Silver October” peak sales season. The data suggests that multi-brand strategies and affordable models are becoming critical for navigating a market increasingly defined by fierce competition and shifting consumer priorities.
Leapmotor and Nio Reshuffle the Ranks
Leapmotor solidified its top position with 57,100 deliveries in August, marking its eighth consecutive month of growth. The company’s momentum was largely fueled by its recently launched B01 model, an affordable vehicle that has seen strong order intake. The performance highlights a successful strategy centered on a diverse product matrix and competitive pricing.
Nio reported record deliveries of 31,300 units for the month, a 55.2% year-on-year increase. The growth was powered by its sub-brands, with the mass-market Ledao brand delivering 16,400 vehicles and becoming the group’s primary volume driver. Its success, however, masked a significant downturn for Nio’s core premium brand, which saw deliveries fall by approximately 48% from a year earlier to 10,500 units. The company’s youth-focused Firefly brand also showed strong momentum, with deliveries growing 84% month-on-month.
Li Auto Stumbles Amid Competition
In a stark contrast to its rivals’ gains, Li Auto posted a sharp decline, with August deliveries falling to 28,500 units—a 41% drop year-on-year and a 7% decrease from July. The company attributed the slump to intense market competition and production transitions.
The automaker is currently ramping up production of its new i8 model and is set to launch the i6 in September, which may have prompted some customers to delay purchases. To reassure investors, CEO Li Xiang announced an ambitious sales target for its pure electric models, aiming for stable monthly sales of 18,000 to 20,000 units combined for its i6, i8, and MEGA MPV models.
Tech Giants Maintain Pressure
China’s technology giants continued their aggressive push into the auto sector. Xiaomi delivered over 30,000 vehicles for the second straight month, driven by strong sales of its SU7 sedan and the recently launched YU7 SUV. In a bid to sustain momentum, Chairman Lei Jun announced new purchase incentives for September, including discounts of up to 48,000 yuan (US$6,620) on the YU7. The company has raised its full-year delivery target for 2025 to 350,000 units.
HIMA, the automotive alliance led by Huawei, delivered 44,600 vehicles, a slight 7% dip from the previous month. Its Aito brand remained a strong performer in the premium segment, delivering 40,000 units, with its M8 and M9 models leading sales in their respective high-end price brackets.
Legacy Automakers Accelerate EV Push
Traditional Chinese automakers also demonstrated significant progress in their transition to electric vehicles, adding further pressure on startups.
Industry leader BYD sold 373,600 vehicles in August, with its new energy vehicle exports doubling year-on-year to 80,800 units. Geely reported a 95% year-on-year surge in its new energy vehicle sales to 147,300 units, which now account for 59% of its total volume. Great Wall Motor sold 37,500 new energy vehicles, contributing to its overall year-on-year sales growth of 22%.