New Energy Passenger Vehicle Sales Surpass 50% Penetration for the First Time in 2025

[Market Data] In December 2025, new energy passenger vehicle sales reached 1.329 million units, with an annual penetration rate of 53.3%—marking the first time it has exceeded half of total sales.

Key Metrics: Annual wholesale deliveries exceed 15.33 million; December penetration at 57.4%

December’s 1.329 million new energy vehicle (NEV) sales represent a 9% month-over-month increase. Full-year NEV sales totaled 12.3375 million units, up 15% year-over-year. Although the December penetration rate of 57.4% was slightly lower than November’s 60.1%, the full-year penetration rate of 53.3% represents a historic milestone by surpassing the 50% threshold.

Core Trends: BYD leads the market; Xiaomi and XPeng post strong growth

BYD remained the market leader with 3.0398 million units sold annually, though this marked a 13% year-over-year decline. Xiaomi achieved sales of 410,400 units, surging 200% year-over-year. XPeng and Leapmotor grew by 124% and 76%, respectively. Plug-in hybrid and extended-range electric vehicles both saw month-over-month increases exceeding 23% in December, emerging as key structural highlights.

Strategic Underpinnings: Policy phase-out and demand pull-forward effects become evident

With the year-end expiration of the purchase tax exemption policy and the exhaustion of local subsidies, the typical year-end buying surge was flattened. Some demand may be deferred to 2026, supporting a strong start to the 15th Five-Year Plan period.