China Extends Dominance in EV Market as Western Automakers Struggle

China solidified its position as the world's largest electric vehicle market in 2025, with domestic brands capturing nearly two-thirds of passenger car sales. BYD and Geely led the charge, while Tesla remained the notable foreign exception. Electric and plug-in hybrid sales surged 18% in China, contrasting sharply with slowing adoption rates in the U.S. and Europe.

"Chinese companies will continue to have a relatively clear advantage," said Cui Dongshu of the China Passenger Car Association, citing superior smart features and faster product cycles. CLSA analyst Xiao Feng predicts EVs will eventually claim 75% of the Chinese market, potentially squeezing out all but a handful of foreign automakers by 2030.

Meanwhile, U.S. automakers face mounting challenges. General Motors recently announced a $6 billion charge against its struggling EV division, reflecting broader industry setbacks. Regulatory shifts and tepid consumer demand have forced American manufacturers to scale back electrification plans.