In 2024, government subsidies for scrapping old vehicles gave a significant boost to sales. The market share of electric vehicles already surpassed the 50% mark. At the same time, Chinese OEMs such as BYD, Chery, and Geely strengthened their positions considerably, increasingly displacing international competitors.
The industry also benefited from a broad upgrading: the share of domestic suppliers has now exceeded 90%, and regional value chains have been established. In parallel, new technologies such as autonomous driving functions, intelligent battery systems, and the integration of AI played a major role in differentiation. Charging infrastructure also expanded rapidly, with strong growth in both public charging points and battery swap stations.
For 2025, Frost & Sullivan forecasts further growth in passenger vehicle sales by 4.4% to nearly 29 million units. Electric vehicles are expected to expand their market share further and, through partnerships between OEMs, tech companies (including Huawei and Xiaomi), and start-ups, become more interconnected. This will intensify competition in the EV segment, while conventional powertrains will continue to lose importance. Overall, the industry will undergo further transformation and modernization driven by consolidation, new business models, and technological innovation.
