Auto boss says EV market share could hit 80 pct in China in 2025

The founder and CEO of Chinese car manufacturing Li Auto says electric vehicles sales could hit a staggering 80 per cent of all new cars sold in China by the end of 2025.

“By December 2025, NEVs will account for more than 80 per cent of all new vehicle sales in China” said Li Xiang on his WeChat account.

In February, the CEO predicted that China’s new energy vehicle (NEV) penetration rate would reach 70 percent by the fourth quarter of 2025, but has now increased his forecast to 80%.

Li compared the growth in EV production currently underway in China to the massive scale up of industrial production during World War II.

“The years 2023-2025 for China’s smart EV market will be like the last three years of World War II in history from 1943-1945” said Li Xiang.

Li Auto delivered 52,584 vehicles in the first quarter, up 65.8 percent year-on-year and up 13.53 percent from the fourth quarter of last year.

Electric vehicle sales in the world’s largest car market are booming. After hitting 25% of all new car sales in 2022, EV market share increased to around 35% in March with April figures due in the coming days.

During his recent podcast interview with The Driven (to be posted later this week) technology researcher Tony Seba agrees.

“I just came back from Shanghai. And what I saw was amazing. I mean, just the sheer quality for the cost of the EVS that Chinese automakers are producing is just stunning.”

“And also there are so many automakers in China that are achieving scale. This year EVs may well achieve 40 to 50%.” said Seba.

And it’s not just China. Even in Australia EV sales are growing quickly. Last month, the EV market share in Australia hit 8% in April, up from just 1% during during the same month in 2022. In the ACT, it reached 21 per cent.

The world’s rapid shift to EVs will have big winners and big losers. Tesla and Chinese automakers who moved early on EV production are set to see their lead increase while legacy auto brands from Germany, Japan and the US face an enormous challenges as market conditions change and countries introduce new pollution and emissions standards.