In 2025, 1 in 4 new automotive vehicle sales globally are expected to be an electric vehicle – either fully electric or a plug-in hybrid. That is a significant rise from just five years ago, when EV sales amounted to fewer than 1 in 20 new car sales, according to the International Energy Agency, an intergovernmental organization examining energy use around the world. In the U.S., however, EV sales have lagged, only reaching 1 in 10 in 2024. By contrast, in China, the world’s largest car market, more than half of all new vehicle sales are electric.
The International Energy Agency has reported that twothirds of fully electric cars in China are now cheaper to buy than their gasoline equivalents. With operating and maintenance costs already cheaper than gasoline models, EVs are attractive purchases. Most EVs purchased in China are made there as well, by a range of different companies. NIO, Xpeng, Xiaomi, Zeekr, Geely, Chery, Great Wall Motor, Leapmotor and especially BYD are household names in China. As someone who has followed and published on the topic of EVs for over 15 years, I expect they will soon become as widely known in the rest of the world.
What kinds of EVs is China producing?
China’s automakers are producing a full range of electric vehicles, from the subcompact, like the BYD Seagull, to full-size SUVs, like the Xpeng G9, and luxury cars, like the Zeekr 009. Recent European crash-test evaluations have given top safety ratings to Chinese EVs, and many of them cost less than similar models made by other companies in other countries. A Wall Street Journal video explores a Chinese ‘dark factory’ – one so automated that it doesn’t need lights inside. What’s behind Chinese EV success? There are several factors behind Chinese companies’ success in producing and selling EVs. To be sure, relatively low labor costs are part of the explanation.
So are generous government subsidies, as EVs were one of several advanced technologies selected by the Chinese government to propel the nation’s global technological profile. But Chinese EV makers are also making other advances. They make significant use of industrial robotics, even to the point of building so-called “dark factories” that can operate with minimal human intervention. For passengers, they have reimagined vehicles’ interiors, with large touchscreens for information and entertainment, and even added a refrigerator, bed or karaoke system.
Competition among Chinese EV makers is fierce, which drives additional innovation. BYD is the largest seller of EVs, both domestically and globally. Yet the company says it employs over 100,000 scientists and engineers seeking continual improvement. From initial concept models to actual rollout of factorymade cars, BYD takes 18 months – half as long as U.S. and other global automakers take for their product development processes, Reuters reported.
BYD is also the world’s second largest EV battery seller and has developed a new battery that can recharge in just five minutes, roughly the same time it takes to fill a gas-powered car’s tank. An Xpeng M03, whose base model costs about US$17,000, is displayed at a car show in Shanghai in April 2025
