With the May auto market sales figures released, some celebrate while others worry. Yet Changan Automobile's performance report showing 209,100 units still made quite a few people sit up and take notice. It wasn't the total volume—for Changan's scale has always been there—but the 'value' within that performance report, carrying a distinct flavor compared to usual.

We need to temporarily shift our gaze away from the over-discussed 'involution' domestic market. What caught my attention most about Changan this time is not the 5.8% growth in NEVs, nor the individual performance of Qiyuan or Deepal, but that set of data: overseas deliveries of 70,700 units, a year-over-year increase of 38%. Nearly one-third of sales come from overseas; in the context of all Chinese automotive brands, this proportion is quite staggering.

You should know, just last month, Changan officially announced becoming the global official partner of the Portugal national football team. At that time, many thought this was just another sports marketing campaign. But looking at the overseas sales in May combined, you will understand this is the key move of Changan's 'Inclusive as the Sea' Plan 2.0; the globalization strategy behind it is very clear - it's not just selling cars overseas, but becoming a true global brand.

In recent years, I've visited overseas factories of many domestic autonomous brands and witnessed various 'going global' models. Some just pull domestic stock cars out to make profit via exchange rates, while others sincerely build channels and provide services. Changan belongs to the latter, and is the type that 'fortifies its camp and fights steady battles'. Starting from Southeast Asia, it gradually planted its supply chain, service system, and brand awareness. This cooperation with the Portuguese national team is more like the horn signaling an entry into the mainstream European market. This composure and strategic determination, frankly, cannot be seen on many brands that are eager for quick success.

Making the overseas market work has an easily overlooked benefit: it can strengthen domestic product capability. The logic is simple: to meet the needs of different regions, road conditions, and regulatory standards globally, your product R&D standards must be 'set high, not low'.

Specifically regarding products, this feeling becomes more obvious. For example, Changan's Blue Whale Powertrain, previously everyone thought 'domestic engine' was just a gimmick. But look at the CS75 PLUS and Eado Blue Whale Super Engine models just launched in May, directly announcing a 'launch price from 79,900 CNY', while claiming 'fuel consumption halved'. This isn't a simple price war; it's a technology popularization war. Taking a set of mature, efficient powertrains and hitting the market at this price tests the integration capability of the entire supply chain and R&D system. For ordinary consumers, spending less money to get a more fuel-efficient and reliable car is a tangible gain. This is much more sincere than piling up smart configurations you won't use.

Speaking of intelligence, Changan's recent move is also worth pondering. Their self-developed 'Tianshu' piloting end-to-end technology is ready for mass production. Many media might boast about how many TOPS of computing power or how many sensors. But what I'd rather emphasize is the three words 'end-to-end'. This used to be the capital for top players like Tesla and Huawei to show off. Changan quietly made it the core of its own 'Beidou Tianshu 2.0' plan.

I've visited Changan's software center and seen their road test data. My feeling is that traditional big factories, once determined to transform, their accumulated strengths in hardware, chassis, and safety fields actually become advantages in the second half of intelligence development. A smart car must first be a car that is good to drive. Changan's intelligent driving solution feels relatively 'steady'. Unlike some new forces that are radical in showing off skills, it releases functions bit by bit while guaranteeing safety redundancy. This intelligence dominated by 'engineer thinking' might lack some buzz, but for users who actually drive daily, it feels much more reliable.

Of course, we can't just brag about technology; we must look at the performance of each sub-brand. Deepal Automobile's May sales reached 33,243 units, a 30% year-over-year increase, with overseas cumulative sales from January to May surging by an explosive 167%. This data is quite interesting. Deepal actually undertakes the role of the pioneer for Changan's 'youthification' and 'electrification'. Its design language and marketing methods are closer to today's young consumers. The explosive growth in overseas sales shows that this design aesthetic and technical route possesses global competitiveness. Avatr delivered 7,336 units in May. Although the absolute number isn't exaggerated, its significance lies in brand elevation, the deep binding with top tech companies like Huawei, providing the best 'credit endorsement' for Changan's technical reserves.

Changan Qiyuan delivered 34,528 units in May. The hero model Q05 alone sold 15,812 units, and even launched in Thailand where orders exceeded 3,000 in just three days. What does this show? It shows Changan's multi-brand strategy is no longer simply making cars out and selling them separately, but truly finding respective niche markets and target audiences. Qiyuan targets the 'basic' of family use, comfort, and cost-performance; Deepal attacks personality and sports; Avatr guards the high-end and technology. This set of combination punches is much more refined than the extensive 'having more sons to fight' tactics used by many brands.

Finally, we must return to 'people' and 'management'. Changan Automobile's transformation in recent years appears 'smooth' largely thanks to the management's strategic determination. From the 'Shangri-La' NEV plan, to the 'Beidou Tianshu' Intelligence plan, to the 'Inclusive as the Sea' Globalization plan, any one of these three would be enough to keep an auto company busy for ten years. Changan is doing all simultaneously and is genuinely advancing them.

Five years ago, if you told me Changan would become a global technology company, I might have put a question mark. But today, looking at these 209,000 monthly sales, seeing the 38% increase in the overseas market, and witnessing the tangible product launches behind names like Blue Whale, Tianshu, and Qiyuan, I think I can straighten out that question mark. For consumers, these grand narratives ultimately translate into a more fuel-efficient CS75, a better-handling Deepal, or a smarter Avatr. And this might just be the best proof of a car company's 'strategic correctness'.

When the narrative of sheer scale in the Chinese New Energy Passenger Car Market is no longer persuasive, a more severe question arises: Where lies the value foundation of the industry?

Looking at the sales data for April alone, it seems everything is "growing upwards": The retail penetration rate of Chinese new energy vehicles historically broke through 60%, reaching 61.4%, meaning for every 10 new cars sold, more than 6 are new energy vehicles.

However, a set of less-than-ideal data echoed in the industry at the same time: In 2025, domestic car sales exceeded 34.4 million units, but the overall profit margin of China's automotive industry during the same period was only 4.1%.

"It looks like scale is growing, but the industry's overall health faces challenges." Wang Hui, Vice President of Avatr Technology, cited data from the CPCA, and in January-February 2026, this figure dropped further to 2.9%.

The latest data shared by Cui Dongshu, Secretary-General of the CPCA Passenger Car Section, shows that in January-March 2026, the automotive industry's profit margin fell to 3.2%, at a low level for the same period in recent years. The automotive industry's profit margin is not only significantly lower than the average profit margin of national industrial enterprises above designated size, but it is also approaching the break-even point for operations for the vast majority of vehicle manufacturers.

When a penetration rate of 61.4% collides with a profit margin of 2.9%, it forms a very fractured industrial landscape: China's automotive industry is speeding ahead on the road of "getting bigger", but is stumbling on the road of "getting stronger".

At the Shenzhen 2026 (4th) Future Automotive Pioneer Conference, these "pioneers" gave some answers and posed deeper questions.

Image Source: Future Automotive Pioneer Conference

Sales Are Rising, Profits Are Falling?

Since 2026, China's automotive market has presented a seemingly contradictory yet established picture.

On one hand, the surge of new energy vehicles is unstoppable. Data from the CPCA Passenger Car Section shows that in April 2026, domestic new energy passenger car retail reached 849,000 units, the penetration rate historically broke through 60%, reaching 61.4%, an increase of 9.7 percentage points compared to the same period in 2025, setting a historical record for monthly penetration in the domestic car market.

Among these, the performance of independent brands was particularly eye-catching. In April, the new energy penetration rate within independent brands reached 80.1%, while the new energy penetration rate among luxury vehicles was only 26.1%. Chinese brands already hold a dominant position in the new energy market.

On the other hand, profit margins for vehicle manufacturers are being compressed sharply. From 4.1% in 2025 to 2.9% in the first two months of 2026, this downward curve is concerning.

Just looking at the absolute value of profit, the total profit of the automotive industry in January-March 2026 was 78.4 billion yuan, a 18% year-over-year decrease. Facing this figure, Wang Hui's remarks at the conference appeared particularly sharp: "Sales without profit are fake sales; scale achieved through price wars is even more of a false prosperity."

Image Source: Future Automotive Pioneer Conference

"Selling more while losing more" has turned from a joke into a ruthless reality.

Investigating the reasons, large-scale "price wars" are undoubtedly the most direct catalyst.

Since 2025, the industry has seen the slogan "Electricity is cheaper than fuel", followed by various companies catching up. Lowering prices is no longer news. But the more fundamental problem is that when all car manufacturers have high convergence in technical routes and product configurations: 800V high-voltage platforms, AI voice large models, and end-to-end intelligent driving become standard configurations, price becomes the only differentiated competitive means, and profits are eroded layer by layer.

Xu Jun, Senior Vice President and Chief Operating Officer of Leapmotor, analyzed: "A range of 700 kilometers versus 1000 kilometers, user perception difference approaches zero, yet costs rise exponentially. Compute power from 30 TOPS to 1000 TOPS, experience difference is far smaller than parameters."

Image Source: Future Automotive Pioneer Conference

He therefore believes that specs so far are just a basic entry ticket, not the deciding factor.

Behind Xu Jun's viewpoint is a trend worth reflection: When automotive technology enters a "convergence period", the architecture of centralized computing + regional controllers is converging, end-to-end intelligent driving solutions are becoming identical, and AI solutions for smart cockpits are becoming increasingly similar, making it increasingly difficult to build differentiated competitiveness relying on technical parameters.

The weight of brand attention in user purchase decisions is rising significantly.

Nio Founder Li Bin revealed the latest research data from McKinsey: One or two years ago, brand was only ranked fifth among purchase decision factors, now it has jumped to second, "believes it will soon enter the top spot".

Image Source: Future Automotive Pioneer Conference

When brands begin to become the "deciding factor", China's automotive industry's technological dividend is quickly turning into brand dividends, while brand reconstruction and construction are far more difficult and test fortitude more than stacking parameters.

Who is Trying to Break the Negative Growth Curse?

Against the background of declining industry profit margins, not all enterprises have fallen into the mud of "revenue growth without profit growth".

At this conference, a few "dark horses" used solid data to prove a possibility: Chinese brands can not only sell at higher prices, but also make profits back.

Xing Xinchu, Chairman of Jianghuai Automobile Group, disclosed in his speech that since Maextro S800 launched in May 2025, cumulative deliveries have exceeded 18,500 units, ranking first in luxury sedan sales above 700,000 yuan for 8 consecutive months.

Image Source: Future Automotive Pioneer Conference

From the perspective of price segments, million-level Chinese luxury cars surpassing century-old luxury brands was almost unimaginable five years ago.

Xing Xinchu attributed this to the path choice of "redefining luxury with technology": "The Maextro brand is not simply copying the development path of traditional luxury cars, but rewriting the narrative paradigm of ultra-luxury car brands with technological innovation."

Nio represents another path worth examining.

On June 1st, Nio announced the latest delivery data: Deliveries in May totaled 37,705 units, a significant year-over-year increase of 62.3%, and a month-over-month increase of 28.4%, setting a new record for single-month deliveries in the brand's history.

The main brand "Nio" delivered 20,013 units, a 50.8% year-over-year increase; the brand "Onvo" positioning the family market performed particularly well, delivering 12,029 units, a 91.5% year-over-year surge, and a month-over-month increase of up to 124.8%; the new brand "Firefly" delivered 5,663 units, a 53.9% year-over-year increase.

From January to May this year, Nio's cumulative new car deliveries have reached 150,526 units, a 68.7% year-over-year increase. At this point, Nio's historical cumulative deliveries officially broke through the 1.14 million mark, reaching 1,148,118 units.

Regarding financial reports, in Q1 this year, Nio's total revenue was 25.53 billion yuan, a 112.2% year-over-year increase, exceeding the revenue guidance upper limit of 24.48 billion to 25.18 billion yuan previously given by the company; total gross profit was 4.86 billion yuan, a 428.4% year-over-year significant increase; the company's comprehensive gross margin reached 19.0%, the highest in four years. Vehicle gross margin was 18.8%, growing quarter-over-quarter for four consecutive quarters, also the highest in four years. Other sales gross margin was 20.6%, also the best level in four years.

Regarding net loss, Q1 net loss narrowed to 332.1 million yuan, significantly narrowing from the net loss of 6.75 billion yuan at the same period last year. As of the end of Q1, Nio's cash reserves increased to 48.2 billion yuan, achieving positive operating cash flow for three consecutive quarters.

In Q1 2026, Nio brand's average transaction price reached 390,000 yuan, 50,000 yuan higher than BMW and 130,000 yuan higher than Audi.

Behind this price difference is a qualitative change in brand premium capability.

No less coincidentally, data shows that the average transaction price of the HIMA全系 series vehicles has remained stable at 390,000 yuan, ranking first in the average transaction price of Chinese car brands for several consecutive months, with performance in some periods surpassing traditional luxury brands.

In segmented brands, the AITO brand's average transaction price reached as high as 409,000 yuan, flagship model AITO M9 cumulative deliveries exceeded 280,000 units, ranking first in 500,000-level luxury SUV sales for 21 consecutive months. The Maextro brand positioning the ultra-luxury market also performed strongly, the first model Maextro S800 price range 708,000 - 1,018,000 yuan, deliveries exceeded 17,000 units in 11 months since launch, ranking first in ultra-luxury sedans above 700,000 yuan for 8 consecutive months, single-month sales even exceeding the total sales of multiple traditional top luxury sedans.

Image Source: Future Automotive Pioneer Conference

The logic behind these brands rising against the trend in price wars is not accidental: First, deep understanding of user value rather than simple spec stacking, second, extreme investment in new technologies forming tech premiums, third, forming systemic capabilities in manufacturing, supply chain, and quality, fourth, deep synergy with partners like Huawei forming technological leadership.

However, analyzing the financial performance of the above brands more deeply, a thought-provoking question emerges: Will the existence of these high-price, high-profit brands change the trend of the automotive industry's profit margin overall?

The answer may not be optimistic. Although Maextro S800, Nio ES8/ES9, and AITO M9 have achieved impressive results in their respective price segments, their share of overall industry sales remains limited.

In other words, the "local breakthrough" of high-endization has not yet reversed the "overall predicament" of the entire industry.

For most independent brands, the average car price is still below 150,000 yuan, and the main battlefield of price wars continues intensely in the mid-to-low-end market.

When most players are still struggling at the loss line, a few successful high-end brands cannot support the entire industry's profitability level.

The true test of China's automotive industry moving "from big to strong" is not whether it can produce one or two products that can rival the Mercedes-Benz S-Class, but whether it can achieve high-quality value creation universally across all categories and price segments.

Mercedes-Benz Sales in China Dropped 27%, Can Chinese Cars Smile Overseas?

When the smoke of price wars rises and falls in the domestic market, the overseas market is becoming China's new "second battlefield" for the next round of competition.

At this conference, multiple guests elaborated in-depth on the strategic layout and direction of China's automotive globalization. If domestic competition is about fierce struggle in the existing stock market, then global competition is a long-term bet on the incremental market.

Avatr's globalization practice provides a highly representative sample.

Wang Hui disclosed in the speech that Avatr has entered more than 40 countries and regions. Avatr 11's starting price in China is about 290,000 yuan, but overseas it is close to 450,000 yuan.

"In Thailand, we firmly hold the #1 spot in luxury electric SUV sales, and in Dubai we occupy 10% of the local high-end electric vehicle market share." Wang Hui said, "At the end of this year, we will officially enter Europe. Although we have been in overseas markets for about a year and a half, we have already achieved stable profitability. So future globalization is something that must be done."

Wang Hui also revealed the brand strategy of sponsoring the Portugal national team in the interview session. He stated that Avatr's main products in Europe will fully enter Europe in November and December. He will go to Europe to communicate with partners in multiple countries. "Sponsoring the Portugal national team is just one of our actions at the Europe brand level. What we adhere to in Europe including globally is long-termism. Besides the brand side and product side, greater resource investment is in the service side, system side, and construction of operational capabilities."

Geely's globalization layout is more macroscopic and systematic.

Geely Automobile Group Vice President Li Chuanghai pointed out that the "most essential thing about China's automotive globalization is not low-price volume, but technology as the root, system as the foundation, brand as the soul, ultimately completing globalization from selling cars to defining the future of cars".

Image Source: Future Automotive Pioneer Conference

He introduced that Geely has operated globalization business for 20 years, owning 5 R&D centers, 16 test bases, with deep integration of local partners in Europe, Southeast Asia, Middle East, Latin America, and Eastern Europe. Geely has participated in co-building international standards and is the first Asian car manufacturer in IATF with board voting rights.

In the dimension of car exports, data from April 2026 also provides an important reference.

In April 2026, car exports reached 901,000 units, a 74.4% year-over-year increase, among which new energy vehicle exports increased by more than double year-over-year, reaching 430,000 units. The overseas market has become the most important incremental engine for China's automotive industry.

However, while export growth is gratifying, a comparative data worth examining is: In Q1 2026, Mercedes-Benz Group sales in China were 111,600 units, a 26.9% year-over-year decrease, becoming the region with the most significant decline among its major global markets. Meanwhile, financial reports showed Mercedes-Benz Q1 revenue was 31.602 billion euros, a 4.9% year-over-year decrease; net profit was 1.433 billion euros, a 17.2% decrease; global sales were 499,700 units, a 6% year-over-year decrease.

This set of numbers reflects both the challenges Mercedes-Benz encountered in the China market, and poses a question: When Chinese brands take root in the overseas market, in what posture will they face global competition?

Chinese cars are replicating the dilemma BBA faced in China's domestic market: When local brands continuously conquer territory through technological advantages and high cost-performance ratios, powerful international brands may also encounter strong counterattacks from local brands in other markets.

When Mercedes-Benz China Senior R&D Executive VP Drummond Jacoy was asked how he views China's new luxury brands, his answer was cautious yet with a hint of urgency: "China has many very excellent brands and products, I respect them very much. We are vigorously embracing technological innovation, continuously learning, and blending cutting-edge technology with brand accumulation."

Image Source: Future Automotive Pioneer Conference

He particularly emphasized that Mercedes-Benz has already carried out deep cooperation with Chinese tech companies in China, from ByteDance and Tencent to Momenta, from Amap to Spark, Mercedes-Benz is trying to narrow the intelligent technology gap with China's local enterprises in unprecedented ways.

This just reveals the new trend of global competition: The battlefield has expanded from China's domestic market to the global market, and the core focus of competition has evolved from single-product competition to all-round competition covering technology, ecosystem, supply chain, and brand.

In Li Chuanghai's words: "Going out is not difficult, standing firm, integrating, and taking root is the real skill."

True globalization is by no means simply copying domestic products and price models overseas, but achieving deep and comprehensive integration from capital to technology, from standards to supply chain.

Leapmotor's strategic layout also echoes this judgment. Leapmotor Founder Zhu Jiangming once publicly disclosed Leapmotor's globalization goals. Zhu Jiangming believes the first step is to achieve a "40-60 split", China accounting for 60%, overseas accounting for 40%; next, strive for a "50-50 split"; the most ideal state is "reverse 40-60". If China's automotive global share can achieve 40% domestic and 60% overseas, that is the best state of true globalization.

From "selling products" to "building systems", this is the threshold China's automotive globalization must cross. In the next three to five years, whoever can first form a viable and sustainable profit model in the overseas market will seize the initiative in the long-term race of globalization.

Conclusion: Car Manufacturers Must Make Money

Back to this conference's theme — "Climbing Steps".

China's automotive industry has completed a leap from catching up to leading in 20 years. There are no short cuts on this road, every step is trodden out. But today, China's automotive industry faces an awkward dilemma: Its achievements in volume have reached the peak, global largest car producer, global largest new energy market, globally leading intelligent technology cluster, but breakthroughs in quality are only just beginning to show signs in local areas.

Industry profit margins dropping through 3.2% means the red light for industry health has already lit up.

When most enterprises have exhausted profits in price wars, who will still have enough funds to invest in R&D for next-gen technology, brand reconstruction, and globalization expansion?

From Wang Hui's "Sales without profit are fake sales", to Xu Jun's "Everyone can lower prices, cutting costs is the real skill", to Li Chuanghai's "Keeping direction in the no-man's land", the most valuable consensus of this conference might just be this common sense as simple as it is: The competition of the automotive industry is a war of attrition, not a blitzkrieg.

As Xing Xinchu said: "On the road of breakthrough in high-endization of Chinese brands, there are no lone heroes, only symbiotic evolution."

When the penetration rate of 61.4% and the profit margin of 3.2% are written on this page of the industrial picture at the same time, the answer is already clear enough: China's automotive industry must move from pursuing "getting bigger" to a new stage of "getting stronger".

The issue is not whether it can sell cars to the million-level, but when the price war burns out the last bit of profit, whether the entire industry can still stand steadily on every step of "Climbing Steps".

The Chinese car market continues to face pressure under the double squeeze of weak consumption and price wars, with most automakers trapped in a vicious cycle of trading price for volume.

In contrast, Geely Auto's report of 237,637 units is particularly eye-catching. It not only achieved year-over-year and month-over-month double growth for three consecutive months, but also anchored "half the market share" for four consecutive months with a 56.1% new energy penetration rate.

In this high-quality growth report, Geely Xingyuan sales reached 36,426 units in one month, contributing 44.6% of the Geely Galaxy brand's sales, becoming the core pivot for Geely to stabilize the domestic market base and leverage the global market.

Moreover, with the product strategy of "adding specs without raising prices", it pointed out the direction of value upgrade for the pure electric small car market trapped in homogenization.

From Chinese Sales Champion to Top 3 Globally, Defining Value Over Price Wars

As the 2025 Chinese car market full-category sales champion, Geely Xingyuan broke through 700,000 deliveries in 573 days, setting a record for the fastest growth of pure electric small cars globally. In the first quarter of this year, it even ranked in the top three in global new energy sales, becoming the only Chinese brand model to enter this list.

The newly launched Xingyuan on May 28 has a promotional price ranging from 61,800 to 91,800 Yuan during the 6.18 period. While configurations are comprehensively upgraded, the price remains competitive, further consolidating its market dominance.

The victory of Xingyuan is essentially a "value war" against a "price war". It is worth noting that the pure electric car market below the 100,000 Yuan level has long been stuck in a vicious cycle of "cutting specs and lowering prices". Most automakers exchange low prices for compressing safety standards and cutting core configurations, ultimately leading to industry profit collapse and user experience decline.

However, Xingyuan has taken a completely different path: it did not participate in price fights but achieved "adding specs without raising prices" through technology accessibility, bringing core capabilities originally found in 200,000 Yuan level models down to the entry-level market.

This value upgrade is reflected in three core dimensions:

First, it breaks the prejudice that "small cars are not worth talking about safety", proving that entry-level models can also have top-level safety protection with the only fully excellent results in continuous frontal and side crash tests of its class, and 3.4 times roof crush strength.

Second, it reconstructs the perception that "entry-level equals low intelligence", placing the Qianli Haohan H3 smart driving solution into mass production for the first time. Mainstream driver assistance can be experienced, making up for the shortcomings in Xingyuan's product strength.

Third, it ends the stereotype that "pure electric small cars are only for commuting", allowing small cars to also possess handling experiences comparable to 200,000 Yuan class sports sedans through rear-drive independent suspension architecture and cross-level driving control tuning.

More importantly, Xingyuan has become the "vanguard" of Geely's global layout.

In the first quarter of this year, Xingyuan topped the sales of Class B pure electric hatchbacks simultaneously in four countries: Mexico, Indonesia, Costa Rica, and Brazil, and also ranked first in Q1 Mexico Class B HB BEV sales.

Unlike past Chinese brands' exports relying on low-price strategies, Xingyuan punches out a new tag of "high quality, premium value" in the global market with comprehensive leading advantages in technology, safety, and experience, setting a new benchmark for Chinese automobile exports.

Multi-brand Synergy, Building a Full-dimension Growth Matrix

Xingyuan's outstanding performance is a microcosm of Geely Auto's product structure continuing to optimize. In May, Geely's four core brands bloomed comprehensively, forming a product matrix covering entry-level, mainstream, and high-end full price bands.

Geely brand sales reached 182,528 units. Among them, the Galaxy brand contributed 81,727 units, accounting for nearly 45%, becoming the core engine for new energy transition; China Star Series sales broke through 100,801 units, up 16.1% year-on-year. Relying on i-HEV Smart Hybrid Technology, it achieved counter-trend growth in fuel vehicles, proving that traditional fuel vehicles still have broad market space through technology upgrades.

On the premiumization front, Zeekr brand deliveries reached 34,377 units in May, up 81.8% year-on-year and up 8.1% month-over-month, achieving year-over-year and month-over-month double growth for four consecutive months.

Among them, high average order value Series 9 and Series 8 combined sales share accounted for nearly 50%, with single vehicle average transaction price up 52.4% year-on-year, achieving true volume and price rising.

Zeekr 9X broke out of the "Domestic Series 9 competition", with May sales reaching 8,441 units and cumulative deliveries breaking 60,000 units, stabilizing in the high-end pure electric SUV market above 300,000 Yuan.

The refreshed Zeekr 009 launched on May 19, the 7-seater Ultra+ "Home Edition" order share exceeds 60%, successfully opening new volume for family users outside the business market.

Continuous rise in new car cycle has injected strong growth momentum for Geely.

The Geely Galaxy Xingyao 7 MAX launched on May 22, confirmed orders broke 10,000 units within 23 hours of launch. Synergizing with Galaxy M7 and Xingjian 7, it jointly entered the 100,000-150,000 Yuan mainstream market;

The Lynk 10 and Lynk 10+ launched on May 29, filling the gap in the mid-to-large size sport pure electric sedan market, and deliveries opened immediately upon launch.

The dense launch of multiple high-value new cars not only marks Geely's accelerating new-old product switch, but also heralds it entering a strong new vehicle cycle.

Global Multi-point Breakthrough, Fundamentals Stabilization Recognized by Institutions

The explosive growth in overseas markets is another highlight of Geely's May sales. Geely's overseas export reached 85,144 units in May, a year-on-year increase of 183.7%. The new energy export share reached 47.9%, and the export product structure continues to optimize.

Unlike other automakers' self-built factory heavy asset export models, Geely adopts a "Industry Symbiosis" light asset model, partnering with Volvo, Proton, Renault, etc., to quickly enter the global market through technology output and localization production.

This model not only effectively avoids trade barriers, but also achieves win-win with local industries, laying a solid foundation for Geely to sprint towards the 750,000 unit annual export target.

Final Thoughts

The Chinese car market has entered an era of "stock competition" from "incremental competition". Relying solely on price wars can no longer achieve sustainable growth. Geely has walked a high-quality development path through technology innovation, product structure optimization, and global layout.

Xingyuan's success proves that even in the most competitive entry-level market, breakthroughs can be achieved through technology accessibility and value upgrade; Zeekr's premiumization breakthrough shows that Chinese brands are fully capable of competing head-to-head with foreign brands in the luxury market.

When "technology accessibility" becomes the new tag of Chinese brands, and when "Chinese Smart Manufacturing" becomes the common choice of global consumers, the Chinese automobile industry is welcoming the true globalization era, and Geely is undoubtedly the most determined leader in this transformation.

In May, China's automotive market overall presented a gentle recovery trend, with domestic brands still being the sales backbone of the market. Recently, BYD, Geely, Chery, Changan, and Great Wall, the top 5 domestic automakers, successively released their monthly performance reports. From the data, these five companies show a general characteristic of "stable total growth, divergence between domestic and international markets, and accelerated new energy penetration". Overseas exports and new energy vehicles have become the most core growth engines; export business has evolved from a "bonus item" to the "core foundation" for some companies. BYD's "dominant leader" status is further consolidated, Chery achieved high growth via exports, Geely's new energy penetration rate broke 56%, Changan focused steadily on balanced development, while Great Wall appeared slightly under pressure during structural transformation.

BYD: Export Hits New High Becomes Biggest Highlight

In May, BYD stood firmly at the top of domestic brands with a monthly sales volume of 383,500 vehicles, maintaining positive growth both year-on-year and month-over-month under a large base. Its two main brands, Dynasty and Ocean, sold a combined 330,200 vehicles, contributing 86.1% of total sales; Fangchengbao's monthly sales broke 30,000 units to reach 30,200, a year-on-year increase of 139.7%, setting a new high for the year; Denza sold 16,300 vehicles, and Yangwang delivered 286 vehicles. From a model perspective, BYD had eight models in May with monthly sales exceeding 20,000 vehicles. The Song Family and Yuan Family both broke 50,000 units, selling 51,370 and 56,691 vehicles respectively. The Sea Lion Family followed closely with 42,615 vehicles, and Seagull sales were also close to 40,000 vehicles.

BYD's biggest highlight in May was exports. Overseas new energy vehicle sales reached 160,600 units, an 80.4% year-on-year increase, accounting for about 42%. The sharp expansion of export scale effectively countered the phased weakness in domestic demand. Cumulative exports from January to May exceeded 620,000 vehicles. High export growth mainly benefited from continued ramping up of overseas factory capacity, improved ocean shipping capacity, and accelerated channel network expansion. In the domestic market, BYD promoted Megawatt Super Charging and intelligent strategies simultaneously—Megawatt charging achieved about 90% charge in 9 minutes; 20,000 super charging stations are planned to be built by 2026; all series models are available with Sky Eye B intelligent driving solutions and city navigation safety fallback plans, accelerating the popularization of high-level intelligent driving. As Gen 2 Blade Battery capacity gradually releases, the company's orders are expected to continue rising.

Chery: Sales Growth Leads the Top 5

Chery Group's total sales volume in May was 247,800 vehicles, a significant year-on-year increase of 20.5%, ranking first in growth speed among the top 5. Exports remained its most core growth engine—May exports reached 181,900 vehicles, an 80.5% year-on-year increase, accounting for 73.4% of total sales that month, continuously breaking the single-month export record for Chinese brands for three months. In terms of new energy, Chery New Energy sold 100,300 vehicles, a 58.8% year-on-year increase. April and May consecutively saw monthly new energy sales breaking 100,000 vehicles.

The strong performance in exports benefited from Chery's long-term deep cultivation of overseas channel advantages and localized operation capabilities. While overseas orders continued to rise, high export growth formed a sharp contrast with domestic sales—Chery's domestic sales in May were only 60,000 vehicles, accounting for one-quarter of total sales. From cumulative data, Chery Group accumulated 1.101 million sales from January to May, but against the annual goal of 3.2 million vehicles, monthly averages need to reach about 420,000 vehicles later, and pressure remains significant.

Geely: New Energy Penetration Rate Breaks 56%

Geely Auto's total sales volume in May was 237,600 vehicles, a 1% year-on-year increase, achieving month-over-month double growth for three consecutive months. In terms of structure, Geely's "New Four Transformations" transformation showed significant results: new energy vehicle sales reached 133,400 units, accounting for 56% of total sales, with new energy share exceeding 50% for four consecutive months.

From sub-brands, performance was significantly divergent. Zeekr brand sales in May reached 34,400 vehicles, a 82% year-on-year increase; Zeekr 9 Series and 8 Series models combined sales approached 50% of total sales, showing bright performance in the high-end market; Galaxy brand sales were 81,700 vehicles; Geely brand sales were 182,500 vehicles, among which China Star Series sales reached 100,800 vehicles; Lynk & Co brand sales were 20,700 vehicles, with new energy vehicle sales share rising to 71%.

In terms of exports, Geely's overseas vehicle exports in May reached 85,100 vehicles, a explosive 184% year-on-year increase, setting a brand single-month export record high. Among exported products, new energy vehicles reached 40,800 units, accounting for nearly half; hybrid and pure electric products have successively landed in Southeast Asia, Middle East, Latin America, and other markets, highlighting the results of global strategy implementation.

Changan: Multi-brand Matrix Balanced Effort

Changan Auto's delivery volume in May was 209,100 vehicles, among which new energy deliveries were 92,400 vehicles, a 5.8% year-on-year increase, with new energy share about 44%. In terms of exports, overseas deliveries reached 70,700 vehicles, a 38% year-on-year increase, becoming another major growth highlight for Changan in May.

In the sub-brand matrix, Changan Qiyuan delivered 34,500 vehicles in May; All-New Q05 delivered 15,800 units, with orders breaking 3,000 units within three days of listing in Thailand; Deepal sales in May were 33,200 vehicles, a 30% year-on-year increase; January to May overseas cumulative sales were 28,700 vehicles, a significant 167% year-on-year increase; Avatr delivered 7,336 vehicles in May; Changan Auto (Gravity) delivered nearly 49,000 vehicles in May.

Changan Auto's balanced layout was fully reflected in May: the fuel car base remained stable, new energy brands Deepal and Qiyuan accelerated volume growth, high-end brand Avatr continued to break through in technical cooperation, and overseas markets simultaneously achieved breakthrough growth. The pattern of five brands working together, driven by both new energy and exports, is initially taking shape.

Great Wall: Overseas Sales Growth Year-on-Year 46.75%

Great Wall Motor's sales in May were 100,400 vehicles, slightly down compared to last May's 102,200 vehicles, making it the only company among the top 5 to show a year-on-year negative growth. From sub-brands, Haval brand sales in May were 55,500 vehicles, remaining Great Wall's most important sales pillar; Tank brand sales were 17,100 vehicles; both Haval and Tank brand sales showed year-on-year declines; Wey brand sold 8,119 vehicles, a 31.78% year-on-year increase, achieving growth against the trend; Ora brand performance was most stunning, with sales of 6,018 vehicles, a significant 206.88% year-on-year increase. In terms of new energy, Great Wall sold 30,400 new energy vehicles in May, with new energy vehicle transformation gradually accelerating.

The overseas market became Great Wall's biggest highlight in May, with overseas sales growing 46.75% year-on-year. Against the background of pressure on the domestic market, strong growth in overseas business effectively made up for the decline in the domestic market. Great Wall Motor's current core contradiction lies in: Haval and Tank, the two traditional main-selling brands, face weak growth, while Wey and Ora brands, although growing notably, have relatively small volume and are not yet enough to support overall growth. How to complete the "relay" between old and new brands is the key issue Great Wall must solve subsequently.

Final Thoughts

From May data, the growth pattern of the top 5 domestic brands has clearly diverged, but there are three common trends worth noting: First, exports have become a key engine for domestic brands to seek stability and growth. Second, new energy transformation is still accelerating, but paths differ among enterprises. Third, technological innovation continues to deepen brand moats. Looking ahead to the second half of the year, competition in the automotive industry will continue to upgrade around these three trends. Although everyone has a common direction, these three trends are all competing for the entire enterprise's industrial chain strength, and the strong will remain strong, which has almost become an inevitable outcome.

On June 10, 2026, in the May domestic compact SUV sales ranking, Deepal S05 firmly topped the list, successfully achieving three consecutive months of sales from March to May, continuously leading the new energy SUV sub-market under 150,000 RMB. Since its launch, Deepal S05 has maintained a strong momentum of over 10,000 units per month on average. May global sales reached 18,866 units, a year-on-year increase of 102.71%. By the end of May, global cumulative sales had exceeded 220,000 units, becoming an indisputable phenomenon-level "global blockbuster product" in the Chinese new energy vehicle market.

In the domestic market, Deepal S05 established an absolute leading position in the highly competitive sub-segment of compact pure electric SUVs under 150,000 RMB by leading sales for three consecutive months; in the global market, it has successfully entered over 70 countries and regions, and will further expand to 150+ countries in the future, becoming a benchmark for the overseas expansion of Chinese new energy vehicles. This dual-line sales trend of "leading domestically, blooming globally" stands out in the 150,000 RMB pure electric SUV market. Distinguishing from the industry's conventional overseas path, Deepal S05 adheres to global unified standards and unified quality, gaining high recognition from consumers in multiple markets including Europe, Southeast Asia, and Central and South America.

From "Price War" to "Value War": Deepal S05's Way to Break Through

Over the past year, the new energy SUV market under 150,000 RMB fell into fierce price gaming. Facing the prevalent industry involution, Deepal S05 chose a more resilient development path: not participating in simple low-price competition, but relying on technological innovation and product evolution to provide users with an "exceeding expectation class-leading experience", winning broad market recognition.

The success of Deepal S05 lies in accurately grasping the real needs of mainstream family users. For most family users, the core demand for pure electric cars is far from "low price", but rather "whether the range is solid, whether energy replenishment is efficient, whether it is reliable in low temperatures, and whether safety is hardcore". Deepal S05 built comprehensive product power with no weaknesses around these essentials.

In terms of range and energy replenishment, Deepal S05 is equipped with CATL cells + Golden Bell Battery across the range, with CLTC pure electric range up to 620 km, fully meeting daily commute and long-distance travel needs. At the same time, 3C super charging technology is standard across the range, with SOC 30%-80% charging time taking only 15 minutes, truly achieving "charge for 15 minutes, drive 100 km", fundamentally solving the range anxiety of pure electric owners.

Aiming at the low-temperature range issue most concerned by northern users, Deepal S05 adopted the world's first Micro-Core High-Frequency Pulse Heating Technology, which received China Patent Gold Award and recognition by the World Intellectual Property Organization. This technology can increase battery temperature by 20°C in extreme low-temperature environments of -30°C, improve power performance by 50%, and shorten charging time by 15%. Paired with the standard heat pump air conditioning system, efficiency is improved by 1.8 to 2.4 times compared to traditional heating methods, with energy saving up to 38%, effectively guaranteeing the authenticity and stability of winter range.

In terms of safety and body structure, Deepal S05's power battery was the first to pass the 2025 New National Standard safety inspection and obtained CATARC NESTA 6D Electric Safety Certification. At the same time, the high-strength steel and aluminum content of the whole vehicle reaches 78%, with maximum steel strength 1700 MPa. Paired with 7700T large die-casting integrated aluminum technology, body torsional stiffness reaches 35,000 N·m/deg, guarding travel safety comprehensively.

From "Product Overseas" to "Brand Overseas": China's Automotive Globalization New Journey

Deepal S05's global journey is not simple product export, but a comprehensive output of technical standards and brand value. In Europe, the birthplace of the global automotive industry, Deepal S05 demonstrated strong competitiveness, winning first place in Spanish compact pure electric SUV registration continuously in February and March; in the Southeast Asian market, Deepal S05 was a hit immediately upon launch in Pakistan, receiving 2,000+ initial large orders in the first month, with subsequent monthly orders stabilizing at 500+; in May, Deepal S05 officially landed in the Polish market, further perfecting its strategic layout in Europe.

Market recognition and professional awards formed a two-way verification. Domestically, Deepal S05 won first place in compact pure electric SUV in the J.D. Power 2026 China New Energy Vehicle New Car Quality Study, which is the industry's most authoritative endorsement of its product quality; Overseas, it successively won Thailand Annual Best Rear-Wheel Drive Compact Electric SUV, Chile Autocosmos 2026 Best Recommended Model, and FIPA Americas Automotive Journalists Association Annual Hybrid Model Award, proving its product power can adapt to vehicle usage needs and consumer preferences in different countries. At the same time, the awards such as German iF Design Award, Turin Auto Design Award Best Smart Human-Machine Fusion Award, and World Green Design Organization Green Design International Award, further from dimensions such as design aesthetics, smart interaction, and sustainable development, verify that Deepal S05 has reached international first-class product standards, enhancing the global market's perception of Chinese cars.

It is worth mentioning that Deepal Auto recently became the Portuguese National Team's Global Official Partner, leveraging the influence of sports IP to further enhance the brand's global influence. Previously, Deepal S05 was officially delivered to the Portuguese National Team and will join hands with world-class stars such as Cristiano Ronaldo to jointly convey the competitive spirit of "Full Charge On, Global Home Court". This cross-industry collaboration is not only a resonance between top manufacturing intelligence and champion spirit, but also shows the confidence and strength of Chinese car brands to the world.

Conclusion

From continuously leading the domestic market to selling hot in over 70 countries and regions globally, to winning multiple international authoritative awards, Deepal S05 proved with solid results that: Chinese car brands have the capability to create global blockbusters. Its success not only set a value benchmark for China's new energy vehicle industry but also provided a learnable development sample for Chinese brands' high-quality overseas expansion.

Three consecutive titles are not the end, but the starting point of Deepal S05's new journey. In the future, with the continuous deepening of Deepal Auto's global layout, we have reason to believe that Deepal S05 will continue to lead the compact SUV market and write a new chapter for Chinese car brands.

On June 10, it was reported that in the May 2026 domestic compact SUV sales ranking, Deepal S05 strongly topped the list, achieving a three-month sales championship from March to May, maintaining a leading position in the new energy SUV sub-market within 150,000 yuan. Since listing, the monthly average sales of Deepal S05 have broken 10,000 units. In May, its global sales reached 18,866 units, a year-on-year increase of 102.71%. By the end of May, cumulative global sales have broken 220,000 units, becoming a phenomenal "global mega product" in the Chinese new energy vehicle market.

In the domestic market, Deepal S05 has led sales for three consecutive months, establishing an absolute leading position in the 150,000 yuan pure electric compact SUV sub-market; looking at the global market, it has entered more than 70 countries and regions, and will expand to more than 150 countries in the future, becoming a benchmark for Chinese new energy vehicle technology going global. This dual-line hot sales trend of "leading domestically and blooming globally" stands out in the 150,000 class pure electric SUV market.

In addition, unlike the common global expansion path in the industry, Deepal S05 has always adhered to global unified standards and quality, gaining high recognition from consumers in markets such as Europe, Southeast Asia, and Central and South America.

From "Price War" to "Value War": Deepal S05's Strategy to Break Through

Over the past year, the price gaming in the new energy SUV market within 150,000 yuan was extremely intense. Facing the intense internal competition in the industry, Deepal S05 did not participate in low-price competition, but relied on technological innovation and product upgrades to provide users with "cross-level experience", winning widespread market recognition.

The reason why Deepal S05 was successful is that it accurately grasped the real needs of most family users for pure electric vehicles. Most family users want not "cheap", but "long range, fast charging, usable in low temperatures, and guaranteed safety". Deepal S05 is a car with no shortcomings built around these key points. In terms of range and charging, all models of Deepal S05 use CATL battery cells and Golden Bell Battery. The CLTC pure electric range can reach up to 620 km, meeting both daily commute and long-distance travel needs. Moreover, all models are equipped with 3C supercharging technology, charging from 30% to 80% takes only 15 minutes, thoroughly solving the range anxiety problem for pure electric car owners.

Friends in the north worry that EV range won't work in low temperatures. Deepal S05 uses a globally first-of-its-kind micro-core high-frequency pulse heating technology, which won the Chinese Patent Gold Award and UN recognition. This technology can raise the battery temperature by 20 degrees when the temperature is minus 30 degrees, increase power by 50%, and shorten charging time by 15%. Paired with the standard heat pump air conditioning system, it consumes much less power than traditional heating methods, saving 1.8 to 2.4 times, ensuring stable range even in winter.

In terms of safety and body structure, the Deepal S05 power battery has passed the 2025 version of the new national standard safety inspection and also obtained the China Automotive Technology and Research Center's NESTA six-dimensional electric safety certification. The whole car uses 78% high-strength steel and aluminum, with the highest steel strength at 1,700 MPa. It also uses 7700T large die-casting integrated cast aluminum technology, with body torsional stiffness reaching 35,000 N·m/deg, comprehensively ensuring travel safety.

From "Selling Products Abroad" to "Brands Going Global": A New Journey for Chinese Automobiles to Go Global. Deepal S05's global journey is not just about selling cars, but taking technology and brand value out. In Europe, Deepal S05 is very popular, ranking first in compact pure electric SUV sales in Spain for two consecutive months in February and March; in Southeast Asia, Deepal S05 sold very well as soon as it entered the Pakistani market, receiving orders for more than 2,000 vehicles in the first month, and then stabilizing at more than 500 vehicles every month afterwards; in May, Deepal S05 entered the Polish market, further perfecting its strategic layout in Europe.

Dual proof of market recognition and professional awards. Domestically, Deepal S05 ranked first in compact pure electric SUVs in the 2026 J.D. Power China New Energy Vehicle New Car Quality Research, which is the industry's authoritative recognition of its quality; internationally, it also won Thailand's Annual Best Rear-Wheel Drive Compact Electric SUV, Chile's Autocosmos 2026 Best Recommended Model, FIPA Americas Automotive Journalists Association's Annual Hybrid Vehicle Model Award, proving its product power adapts to the driving needs and consumption preferences of different countries and regions. In addition, it also won the German iF Design Award, Turin Car Design Award for Best Intelligent Human-Machine Fusion, and World Green Design Organization's Green Design International Award, proving its level reached international first-class from aspects of design aesthetics, smart interaction, and sustainable development, raising the global understanding of Chinese automobiles.

Recently, Deepal Auto became the Global Official Partner of the Portuguese National Team, enhancing global influence through sports. Previously, Deepal S05 had been delivered to the Portuguese National Team and transmitted competitive spirit together with world-class stars. This cross-border cooperation is a combination of top-tier manufacturing and champion spirit, showcasing the confidence and strength of Chinese automobile brands.

Summary: Deepal S05 leads domestically, selling hotly in more than 70 countries globally, and has won multiple international awards, proving with achievements that Chinese automobile brands have the ability to create global blockbusters. Its success sets a benchmark for Chinese new energy vehicles and provides an example for Chinese brands to go global.

The three consecutive championships are not the end, but a new starting point for Deepal S05. In the future, with the further deepening of Deepal Auto's global layout, it is believed that Deepal S05 will continue to lead the compact SUV market and write a new chapter for Chinese automobile brands.

For Avatr in 2026, the days aren't going well. The Hong Kong Stock Exchange IPO prospectus automatically expired after just 6 months, which already raised many doubts. The reality of poor Q1 sales and a sharp year-on-year drop in April alone further led many to believe whether the brand backed by the three giants Changan, Huawei, and CATL is already "done". So, can this high-end brand once considered limitless in potential still "turn the tide"?

Sales plummeted cliff-style, where is the problem?

Avatr, considered to be thriving next in 2025, has been "falling" since entering 2026. According to China Passenger Car Association data, Avatr cumulative deliveries in Q1 2026 were 11,392 units, a sharp 53.5% year-on-year drop, nearly double the industry average, monthly sales less than 40% of last year's peak. Compared with brands like Li Auto, Leapmotor, Xiaomi in the same period, the gap is even more visible.

They say sitting under a big tree is cool, and as a high-end brand backed by the three giants Changan, Huawei, CATL, why did Avatr fall behind so fast? In fact, looking at Avatr's current performance, the problem is not hard to find. Avatr initially had endorsement from the "Big Three", with three selling points "Changan strength + Huawei Smart Driving + CATL Battery" presented, it was still able to attract a large batch of consumers to buy.

But now, Huawei's technology has almost become the "public resource" of the whole industry, CATL's batteries are not unique to Avatr, Changan has other brands to balance, the original "Iron Triangle" exclusive halo gradually faded, Avatr naturally couldn't easily get consumer support.

Of course, Avatr could win over customers with its perfect product matrix and excellent service. Unfortunately, Avatr seems to not have this ability for now. On one hand, Avatr is stuck in a very competitive price segment, Tesla, BYD, Xiaomi, Zeekr and other brands each have their own territory, Avatr without clear tags wants to break in is really too hard.

And the "rapid iteration backstab" at the product end left users heartbroken. The "backstabbing event" happened last year, many still have an impression. Soon after Avatr 12 four-laser version launched, the brand launched new model equipped with 896-line dual-optical path LiDAR, AD performance greatly upgraded, old owners' vehicles instantly devalued, second-hand car depreciation rate up to 35% to 40%, triggering large-scale user complaints and reputation collapse. Plus 2026 Avatr new products haven't come for a long time, product rhythm "interrupted", consumer interest weak, Q1 sales hard to sustain.

Three chairmen changed in four years, how to fight this battle?

Sales decline is just surface problem, management continuous turbulence might be the "mine" buried long ago. Don't know if everyone noticed, from 2021 to now, Avatr has changed three chairmen. First Tan Benhong, then end of 2023 Zhu Huarong took over personally, to Sept 2025, "Post-80s" Wang Hui took over, equals three leaders change in four years.

During Tan Benhong period, Avatr took pure electric high-end route, result 2023 whole year only sold 27,600 units. Sales not very good, Avatr didn't give too many chances, directly changed Zhu Huarong to take over. Zhu Huarong's thinking was not same as previous, after taking office immediately turned, all series on extended range, and price dropped to 200,000 level, sales indeed pulled up, but also carried "downgrade" questioning. Arrived at Wang Hui, started talking "Anti-Involution", "Value Leap", promoting "Strategy 2.0".

Perhaps changing leaders' original intention was for brand to get better, but different senior management management concepts, decisions etc. will differ, so frequently changing senior management, brand's impact is also obvious. And the difference here also reflects Avatr's "Triangle Governance" problem, everyone knows Avatr backed by three big shots, but seems few people thought, three "big shots" with different interest demands, will it affect Avatr's normal "course" due to focus difference.

Behind each chairman stands different shareholder logic, Avatr fluctuated between "high and high" above 300,000, then pushed 219,900 Avatr 07 to probe market, after a while new model might price raise again. Whether this repeated wavering was influenced by different decision makers, we do not know. But a brand who themselves are wavering, to "fight" in high-end market, seems cannot make people produce too much confidence.

Making money overseas, but may not necessarily "save life"

Although domestic is a mess, but Avatr's overseas performance is quite good. Since Sep 2024 launch globalization, Avatr has entered more than 40 countries and regions, and in several markets has achieved stable profit. In Thailand, Avatr 11 starting price approx 447,000 RMB, long time dominating high-end pure electric sales rank first; In UAE, occupied local high-end EV 10% share; In Singapore, Avatr 11 sold to 1.56 million RMB, sales still rising. From its overseas results view, Avatr's tactic counts as successful.

But the problem is, overseas this amount, can turn Avatr next situation? Currently look, may not that optimistic. Avatr 2026 overseas target 55,000 units, hope to 2030 overseas ratio 40%, this idea sounds good, but Avatr truly walk out of loss mud, monthly sales need pull to 20,000 units above to have scale effect. Overseas this volume, put in bigger plate look, weight far from enough.

Look again at blood-making ability, Avatr 2024 loss 4.018 billion yuan, 2025 first half loss 1.585 billion yuan, 3.5 years cumulative loss over 11.3 billion yuan. Even if overseas year earn hundreds of millions, facing monthly loss several hundreds of millions domestic business, overseas that profit, might not even fill domestic loss fragment.

This is not saying Avatr overseas has no value, high-end positioning, brand premium, differentiation route, these directions are correct. But for a 2026 Q1 sales halved, IPO suspended, billion loss pressure brand, overseas current only bonus item, hard to use as lifeline straw. In other words, true turnaround battle, still need to fight in domestic. And this year passed good few months, Avatr next want "turnaround", probably also not that simple.

Conclusion

Avatr's foundation not thin, three industry giants endorsement, overseas market also developing, tech reserve not missing, foundation still very good. Only just, market competition also very fierce, give Avatr window period getting narrower. Back to start that question: Can Avatr turn around? This question's answer now cannot be certain. But can be foreseen is, Q1 sales halved, billion loss set there, IPO suspended, market competition day by day fierce, if its H2 cannot fight new hit, these "variables" will all press brand breathless.

Is the Mixue-style approach really effective?

In 2026, the new energy poker table is undergoing drastic restructuring by the month.

The China Passenger Car Association predicts that the new energy penetration rate will exceed 62% in May, with the fuel vehicle share compressed to less than 40%.

More importantly, 30,000 vehicles—the figure once seen as the top-tier threshold—is now squeezed into 7 brands. And the top Leapmotor raised this threshold to over 80,000.

The landscape is thinning and thickening. Thinning, because the leaders are far ahead; thickening, because the chasing echelons have never been so crowded. Is there only one path to success? Who could know before the main drama ends?

Leapmotor's '80,000+' Moment

Leapmotor sold 81,500 units in May, up 81% YoY.

For a long time in the past, EV new forces loved to talk about high-end, smart, and brand upgrade. As if the higher you stand, the more story you have. However, Leapmotor took another path, almost adopting the 'Mixue Bingcheng' approach, focusing on family users in the 100,000 to 200,000 RMB price range.

Users in this price range have broader coverage but are more sensitive to price, and at the same time, it is hard to tell a particularly 'sexy' capital story. However, the operational logic must be very grounded. The return is that once costs, reputation, and channel efficiency reach a certain level, sales elasticity will also be larger.

For example, A10 delivered over 20,000 units in a single month, squeezing LiDAR and Qualcomm 8295 chip into under 100,000; C Series global cumulative sales exceeded 800,000; D19 new orders maintained above 10,000. Three product lines, three price bands, precisely locking three key nodes of the mainstream family market.

For this reason, Leapmotor's lead is not 'single hit driving', but the result of 'matrix synergy'.

But the hidden worry lies in: should we still pursue brand upgrade? Should we still pursue high profits? In the high-end market, will the 'Mixue Bingcheng' approach still work? Actually, Leapmotor knows all this, otherwise it wouldn't have proposed the idea of 'launching a new brand independently'.

Nio approaches 40,000, Li Auto under pressure, Xpeng slight increase

May's second tier is worth detailed tasting.

Nio delivered 37,705 vehicles, up 62.3% YoY, and up 28.4% MoM, with the synergy effect of the multi-brand strategy beginning to materialize.

Among them, Nio brand 20,013, Onvo 12,029, Firefly 5,663. Three brands, three niche tracks, three-level ladder user acceptance.

But there is still one unresolved problem: Can Onvo's brand independence and user perception really work through? If it relies solely on main brand downward channel and resource funding, multi-brand might drag overall efficiency.

To a certain extent, Onvo must move volume, and with this wave of model refresh, let's see the results.

Li Auto delivered 33,350 vehicles in May, down 18% YoY, and down about 0.2% MoM.

Having said that, Li Auto's historical cumulative deliveries broke 1.7 million and is still one of the most substantial new forces. But there are two signals worth being vigilant: first, two consecutive months both YoY and MoM decline; second, with competitors' intensive launches in the same price band, Li Auto's differentiation barrier is being eroded.

i6 deliveries broke 20,000 for three consecutive months, L9 new model release 2 weeks orders broke 10,000, but whether incremental volume can timely fill the basement decline is still unknown.

More worthy of attention is the financial aspect: Li Auto turned from profit to loss in Q1, net loss of 2.276 billion RMB, vehicle gross margin plummeted from 19.8% to 6.1%. Loss of the profit benchmark may impact the capital market more than the sales slowdown.

Xpeng delivered 32,158 vehicles in May, up 3.6% MoM, setting the monthly high since 2026.

Among them, Xpeng GX launched on May 20, 12 hours large deposits 24,863, Ultra Flagship version proportion over 80%, after June mass delivery expected to pull overall data.

MONA Family will continue to introduce new members, including L03 and L05, having the opportunity to grow MONA's potential market together.

Xiaomi stood firm on the 30,000+ step for two consecutive months, from single car brand heat to multi-model product layout, Xiaomi is completing the role switch from 'topic creators' to 'market participants'.

This year's full year sales target is 550,000, Jan-May completed 140,000 to 150,000, estimated 400,000 'gap' remains,

So, in the remaining months, average monthly sales need to exceed 50,000, pressure is not small. Perhaps, after EREV products hit the market, there should be a chance to capture a new group of users again.

Harmony Intelligent Mobility delivered 46,122 vehicles in May, up 41% MoM, returning to the top of the list.

Special mention: AITO M6 first complete delivery month broke 20,000 units, Shangjie Z7 delivery started on May 30, 2 days delivery over 2,000. Huawei ecosystem brand call power plus multi-brand matrix approach is forming a unique competitive barrier.

Second-Gen Startups, Waist Explosion

First, let's look at a 'Second-Gen' May sales express:

Zeekr: 34,377, YoY surge 81.8%, consecutive 4 months both YoY and MoM growth, creating historical high. 9 Series and 8 Series flagship models sales share nearly 50%, single car transaction average price over 360,000 RMB; Zeekr 009 in Singapore market starting price as high as 409,900 SGD (then equivalent to 2.21 million RMB).

This group of numbers shows Zeekr has not only broken through of domestic brands, but entered global luxury car market mainstream view. Volume and price rise together logic is not complex: flagship builds reputation, mid-range moves scale. When 9X, 009 ultra-high ticket price anchors brand premium capability, 8X, 001 volume models user acceptance cost naturally declines.

Deepal: 33,243, YoY growth 30%, consecutive 3 months over 30,000, cumulative deliveries broke 850,000.

Deepal's path worth chewing repeatedly: its rhythm is not 'hit explosion', but 'three lines push'. S05, S07, S09 three models simultaneously hot selling, product lines cover 100,000 to 200,000 main range.

This approach has no hit one night godhood drama, but in stock competition, multi-product lines synchronous volume, supporting each other, system resilience is stronger.

GAC Aion: 33,140, YoY growth 23.8%, consecutive months YoY positive growth.

Aion N60 officially launched, full series standard equipped LiDAR, WeRide L4 shared algorithm, Zero Gravity Seats, Five-link rear suspension, price 109,800-129,800 RMB, first month sales broke 5,000. This 'Technology universality' approach, identical with Leapmotor A10 underlying logic.

Voyah: 13,003, YoY growth 30%. More important than sales numbers, Voyah offline touchpoint coverage over 100 cities, self-built charging stations reached 130. When energy replenishment system and channel network truly formed, sales ceiling naturally will be pushed open.

IM Motors: 10,023, consecutive 2 months broke 10,000, Jan-May cumulative sales YoY surge 115%. IM Motors LS8 post launch pulled a wave order volume recovery, let's see sustainable explosive power later.

Avatr: 7,336 created annual high, and showing month-by-month acceleration trend, overall is positive.

To be honest, 'Second-Gen' held their own positions, not completely overturned in landscape change, as for those who can carry the flag already diffused from Zeekr, Deepal two heads to multiple nodes at the waist.

Written at the end

2026 new energy market, experiencing drastic change from 'inclusive growth' to 'stock battle'. Price war normalized, most car companies contract front line, profit as first goal. Elimination round rules are simple: sell and live, can't sell and quit. And can't sell signal, often hidden in consecutive two or three months MoM decline.

May data, is this elimination round a clear report card: Leapmotor first to work through 'mainstream market scale' path, Nio multi-brand synergy saw first light, Li Auto facing replacement pain, Xpeng still looking for new incremental explosion points, Xiaomi continuously holding 30,000 level. And 'Second-Gen' collective volume increase, is building a wide moat at the waist of new energy market.

Electric competition second half, variables both from new forces aggressive acceleration, also from 'Second-Gen' steady advance. Multiple heads advance landscape once formed, future competition will not be single dimension speed race, but full chain system war covering R&D, manufacturing, channel, service.

And such competition, will evolve how, wait and see.

Author of this article is Ti Che Bang Xi Bei

The international energy situation continues to fluctuate, oil prices continue to rise, prompting Europeans to accept electric vehicles, and giving Chinese new energy vehicle brands new hope in Europe. According to foreign media reports, in April 2026, overall sales of Chinese automakers in the European market increased by 114% year-on-year, with SAIC Motor, BYD, and Chery emerging as the big winners.

While products are selling well, facing EU trade barriers and the global reality of excess capacity, Chinese top new and old automakers are also accelerating the layout of overseas production bases, landing localized production by acquiring and renovating idle capacity of traditional automakers in the US and Europe.

From export to sales to production, Chinese new energy vehicle brands going global are accelerating their advancement, expected to enter a new stage of reshaping the European automotive industry landscape.

SAIC Steady, Chery Aggressive, Chinese Cars Selling Big in Europe

On May 22, 2026, European automotive media cited the latest data from local market research firm Dataforce, stating April overall new car sales in Europe continued to recover, up 6.4% year-on-year, with the regional car market maintaining a steady recovery trend overall.

Due to the ongoing conflict in the Middle East, European oil prices have risen by about 20% since 2026, therefore, new energy models became the core driver pulling April growth in the European car market. Among them, pure electric vehicles performed the most prominently, with April sales increasing by 38% year-on-year, setting the highest single-month growth rate since 2026; Plug-in hybrid vehicle sales growth was 21%, and Hybrid vehicle sales growth also reached 15%.

European car users are accelerating their shift to new energy vehicles, which also created a perfect growth opportunity for Chinese car brands to accelerate expanding sales in the European market.

Data shows, in April 2026, overall sales of Chinese automakers in the European market doubled, surging 114% year-on-year. Among them, SAIC Motor sales in April were 30,074 vehicles, stably at the top of the Chinese automaker sales list, BYD single month sales were 28,186 vehicles ranking second, Chery April sales were 25,656 vehicles, ranking third. From a single-month performance perspective, the sales gap between the three Chinese automakers in the European market is also continuously narrowing.

In terms of sales growth rate, April European car market growth rate list was almost dominated by Chinese brands, Leapmotor growth rate was as high as 423%, Chery and BYD followed with year-on-year growth rates of 344% and 125% respectively, overall growth momentum was strong.

Among them, Chery became the Chinese automaker with the strongest growth explosiveness in the European market in April. Compared to April 2025, Chery sales increased by nearly 20,000 vehicles. Dataforce data shows, Chery brand April 2025 sales in Europe were only 4 vehicles, this April reached 5,446 vehicles; In addition, two sub-brands under Chery, Omoda and Jaecoo, both exerted force synchronously, all ranked in the forefront of European market sales growth, among them, Omoda growth ranked third in Europe, Jaecoo ranked sixth. Terminal market performance indicates Chery's layout in Europe has entered a stage of full-force exertion.

Because contrasting sharply with the high growth of Chinese brands is that some European local automakers and traditional car giants encountered sales decline in April. For example, Toyota dipped slightly 1% year-on-year, Renault declined 3%, Ford fell 11%, Hyundai decline reached 12%, Premium brand Porsche also surprisingly declined year-on-year to 17%, Mitsubishi decline was most prominent, reaching 51%.

European local giant Stellantis, which maintains close relations with Chinese automakers Leapmotor and Dongfeng, April sales achieved 4.3% year-on-year growth, but growth rate was lower than the overall European car market performance. Brand performance division within the group was significant, Leapmotor, Fiat, Opel/Vauxhall, Citroen maintained positive sales growth, while Peugeot and Alfa Romeo showed obvious sales decline.

If Chinese new energy vehicle new and old brands can continue this upward momentum, they will be expected to reshape the European market competition landscape.

Chinese Automakers on a Crazy Buying Spree, But Still Must Clear Union Hurdles

On one hand, multiple factors such as oil price hikes and new energy vehicle market transition overlap, leading to weak sales of traditional car giants in the European market. On the other hand, the manufacturing system left over from the fuel vehicle era is also gradually falling into the dilemma of idleness or excess capacity.

Consulting agencies predict, large numbers of low-utilization car factories in the US and Europe will face shutdown or transfer in the future, and the EU's measure of imposing additional import tariffs on Chinese electric vehicles, will further promote Chinese automakers to accelerate the layout of European localized production.

In this context, taking over and renovating traditional automaker factories has become a core method for many Chinese automakers laying out overseas localized production. This phenomenon has also attracted foreign media attention, recently a European automotive media reported that BYD is currently negotiating with Stellantis and other European automakers to take over idle factories in the region. In fact, BYD announced building a factory in Hungary as early as the end of 2023, becoming the first Chinese automaker to build a passenger car factory in the EU.

BYD Hungary factory planned annual capacity is 300,000 vehicles, in 2025 BYD sales in the European market exceeded 187,000 vehicles, year-on-year increase of over 260% compared to 2024. Predicting according to the growth rate, BYD relying solely on one Hungary factory will be difficult to satisfy car sales needs in Europe, therefore rumors about negotiating factory purchase with local car makers are reasonable.

Chinese automakers full of ambition for the European market are not just BYD. Just in one month of May 2026, news has spread about multiple Chinese automakers negotiating European capacity cooperation projects. For example, on May 20, Stellantis Group announced cooperation negotiation with Dongfeng Group, planning to rely on France Rennes factory to achieve local production of Dongfeng new energy models. In addition, Leapmotor also revealed that Leapmotor International established as a joint venture with Stellantis, is expected to acquire Stellantis factory located in Madrid, Spain, quickly build a European local production base.

There is also news that Geely is also actively accelerating the acquisition of Ford Spain Valencia factory partial assembly production line; Xpeng was also exposed to be negotiating with Volkswagen Group, seeking to acquire its European idle capacity. There is also Chery cooperating with Spain Ebro Group to activate former Nissan old factory, currently production has been resumed, Chery models are about to be imported and landed.

Taking over and renovating European automakers' idle capacity, the benefit is avoiding industry duplicate construction, increase local European employment opportunities, conforming to industrial policy orientation, also can save more time and improve efficiency compared to completely self-building factories.

However, what needs to be reminded to Chinese automakers is, buying spree does not mean permanent security, behind it also hides great risks.

Also recently, after news spread about Volkswagen Group and Xpeng negotiating idle capacity sales, Volkswagen Group union head (Daniela Cavallo) stood before tens of thousands of workers, heatedly criticized group management, and strongly opposed management negotiating with Chinese automakers etc. third parties to yield idle capacity.

Under this pressure, Volkswagen Group CEO (Oliver Blume) publicly stated, currently, Volkswagen has not had any negotiations with Chinese manufacturers regarding using European factory capacity, in the future there are absolutely no related cooperation plans.

Compared to emerging markets such as Southeast Asia, Middle East, Africa with high inclusivity to Chinese automakers, mature European car market regulations, unions, environmental protection, employment commitments etc. constraints conditions are more severe, Chinese automakers landing localization through the method of acquiring factories, besides renovating production lines, adapting supply chains, more need to adapt to local rules, adapt to local culture to survive better.

Of course, self-built factories can fully fit the automaker's own manufacturing standards, supply chain systems, and production concepts, autonomy control is stronger, but this also suits fund-adequate, layout pace controllable automakers to go for long-term layout. From this level, currently BYD's capacity layout in Europe fits long-term + short-term coordination better, globally, besides negotiating qualified old factories in major markets for renovation, BYD has landed at least 4 self-built complete vehicle factories in places like Thailand, Hungary, Turkey.

European new energy vehicle sales significantly increased, brought development opportunities to Chinese automakers eager to go global, however European complex emotions on Chinese automaker acquiring factories, again makes Chinese automakers' Europe road full of difficulties. Actually, this round of global automotive capacity restructuring led by Chinese automakers, reflects structural transfer of industry discourse power in the new energy vehicle era.

Fuel vehicle era, US/EU/Japan/Korea automakers dominated global car technical routes, capacity configuration and industry rules, under the wave of smart electrification, relying on complete new energy supply chain, mature three-electric and intelligent technology, efficient capacity system, Chinese automakers are upgrading from product export to full-scale overseas presence of capacity, technology, standards, expected to reshape the European and even global automotive industry landscape.

(Source: autonews.com, reuters.com, bloomberg.com)

As the last page of the calendar for May 2026 is turned, on the map of the Chinese automotive market, a peak named "BYD" appears increasingly towering. The monthly new energy vehicle sales figure of 383,453 units is not just a cold statistical result, but also an in-depth report on technological faith, system resilience, and global ambition. Behind this report card, what we see is no longer just a car manufacturer chasing sales, but how a Chinese brand reshapes industry rules through hard core technology, and how to complete a gorgeous transformation from "participant" to "leader" on the global stage.

Stability of the Base and Breakthrough at the High End

In the business world, continuous success is often more awe-inspiring than accidental explosions. The 383,453 units report card submitted by BYD in May is most shocking not by the magnitude of the numbers, but by the structural health shown behind it.

First, is the "rock solid stability" of the base. The Dynasty and Ocean two series combined contributed over 330,000 units of sales, which constitutes the solid chassis of BYD's huge body. This massive national-level sales scale means BYD has completed the leap from "niche trial" to "mass favorite". It no longer relies solely on one hit car to rule the world, but has established a massive product ecosystem capable of self-blood supply and self-renewal. Standing at the top of domestic new energy sales for 60 consecutive months is not only the accumulation of time, but also the ultimate test of market sensitivity and supply chain control.

However, if it only stays on the scale of quantity, BYD might only be called "big", not "strong". The real highlight is the "overwhelming momentum" of its high-end brands. Fang Cheng Bao monthly sales of 30,186 units, year-on-year growth of 139.7%, setting a new high for the year; Denza sales of 16,803 units, maintaining steady growth. This data is highly symbolic; it marks BYD breaking through the "premiumization curse" that Chinese brands have long found difficult to overcome. In traditional cognition, domestic brand upward breakthroughs often come with sales pain, but BYD has proven with facts that Chinese technology can also support premium pricing, and Chinese design can also win the favor of the elite class. The continuous delivery of the Yangwang brand further pushes this exploration to the extreme, showing the courage to explore unknown boundaries.

From "Spec Stacking" to "Experience Guarantee"

In today's car market, talking about technology is no longer strange; the strange thing is how to convert technology into user-perceivable sense of security. BYD's moves in May perfectly interpret what "technology puts people first" means.

If past car competition was a battle of engine RPM, then future competition is a game of code lines and data streams. By the end of May, the number of BYD models equipped with assisted driving exceeded 3.15 million, and Heavenly Eye generates data of over 200 million kilometers daily. This massive data torrent is the most precious feedstock for training AI. But BYD did not stop at owning data, but took a more revolutionary step - launching City Pilot Safety Guarantee Service.

"Only dare to guarantee is true safety." This sentence spoken by Wang Chuanfu rings loud. In the current industry involution, many enterprises are keen on promoting L2, L3 level parameters, but few enterprises dare to make safety promises in actual usage scenarios. BYD became the world's first car manufacturer to simultaneously achieve City Pilot and Smart Parking "dual guarantee". This is not just functional iteration, but also responsibility. It means when the vehicle is driving in complex urban road conditions, the system is no longer a cold auxiliary tool, but becomes the guardian "steady holding up" behind the user. This change from "showing off skills" to "being responsible" is the dividing line of industry maturity.

At the same time, the launch of the second generation Blade Battery and Flash Charge Technology further consolidated the underlying logic of the electrification era. Safety and efficiency are often at odds. But BYD, through technological iteration, allows the third generation Yuan PLUS, Fang Cheng Bao Bao 5 Flash Charge Edition and other models to achieve "charging as fast as refueling, power consumption as cheap as water". This is not only a good medicine for solving user anxiety, but also a key driver for promoting electric cars to fully replace fuel cars.

From "Product Export" to "Value Export"

To observe an enterprise's international status, one cannot look only at its market share in the domestic market, but more at its performance on the world stage. In May, BYD's overseas sales reached 160,177 units, an increase of 80.7% year-on-year, setting a new record. Behind this number is a microcosm of China's manufacturing crossing to China's creation.

It is worth noting that BYD's overseas strategy is not a simple "clearing inventory" or "earning foreign exchange". The hot sales of Seagull, Song PLUS, and Yuan series in overseas markets prove that its product definition ability has already possessed a universally spoken language globally. Especially the SHARK pickup truck continuous two months sales breakthrough 4,000 units, this shows BYD is accurately cutting into the demand pain points of different global market segments.

From Thailand's factory to Brazil's streets, from European squares to Middle East deserts, BYD's wheels are rolling over every corner of the world. This is not only product output, but also standard output, cultural output. It lets the world see that Chinese new energy vehicles are no longer synonyms for cheap, but representatives of high-tech, high-quality lifestyle. With the launch of more heavy products such as Denza N8L Flash Charge Edition, Seal 08, Sealion 08 etc., BYD's global product matrix will be more full, and its global layout chess game will become more active.

After the Summit, There Are Vast Seas and Stars

Looking back at this report card for May 2026, what we see is not only a string of growing numbers, but also the evolution history of a Chinese leading car enterprise. From Dynasty Ocean national popularization to Denza Fang Cheng Bao high-end breakthrough; from Blade Battery safety cornerstone to Heavenly Eye intelligent guard; from domestic market dominance to global territory opening.

BYD is using an almost obsessive technological faith to write a glorious chapter belonging to China's automotive industry. It tells us that true strength is not defeating all opponents, but establishing a set of standards that opponents cannot reach. When others are still discussing how to stack screens and computing power, BYD has already talked about how to guarantee safety; when others are still anxious about battery spontaneous combustion, BYD has already brought flash charge technology into thousands of households.

Reaching the top of dual rankings, for BYD, is not the end point, but a new starting point. At this starting point, what it faces is no longer chasers, but how to define the future mobility proposition. We have reason to believe that with the continuous release of technical dividends and in-depth globalization strategy, BYD will continue to lead the way and win more respect and cheers for Chinese brands on the global stage.

Auto-First | Liu Tianming

China is the largest electric vehicle market. For every ten electric vehicles sold globally, six come from China. China is also the largest electric vehicle manufacturing hub, accounting for nearly 75% of 2025 electric vehicle production. The International Energy Agency wrote in the "2026 Global Electric Vehicle Outlook" that global electric vehicle sales are expected to reach 23.4 million units in 2026, accounting for nearly 30% of global car sales, with China's share reaching 61%.

According to the "2026 Global Electric Vehicle Outlook" released by the International Energy Agency on May 20, 2025 global electric vehicle sales (including BEVs and PHEVs) increased by 20% year-on-year, exceeding 20 million units. This means one in four new cars sold globally is an electric vehicle, and electric vehicle sales hit a record high in nearly 100 countries.

On the sales side, China's electric vehicle sales exceeded 13 million units, maintaining its position as the world's largest electric vehicle market. On the production side, Chinese automakers supplied 60% of global electric vehicle sales. Chinese electric vehicle exports doubled to a record high of over 2.5 million units.

In electric vehicles sold in other parts of the world (excluding China, US, and EU major markets), 55% were imported from China, whereas five years ago this figure was less than 5%. China still holds a dominant position in the electric vehicle supply chain, accounting for over 80% of battery production by 2025, and an even higher share in the production of key electric vehicle battery materials.

Electric vehicle growth in the European market was also significant, with sales increasing by over 30% in 2025 to 4.2 million units, accounting for 28% of all new car sales. Among them, Germany is the largest electric vehicle market in Europe. Driven by policy, sales reached 850,000 units in 2025, up 50% year-on-year, with a market penetration rate of 30%. Norway is the market with the highest electric vehicle penetration rate globally, with 97% of new car sales being electric vehicles in 2025. Turkey is the market with the fastest electric vehicle growth in Europe; sales more than doubled compared to 2024, reaching nearly 240,000 units.

Due to reduced electric vehicle incentives, electric vehicle sales in the US market dropped significantly, reaching approximately 1.5 million units in 2025, slightly lower than 2024.

Outside the major markets of China, US, and Europe, electric vehicle sales reached 2 million units in 2025, up nearly 50% from the same period last year. The International Energy Agency pointed out that this nearly 50% growth was mainly attributed to sales growth in emerging markets and developing economies (EMDEs) excluding China.

The vast majority of electric vehicle supply in emerging markets and developing economies (EMDEs) excluding China comes from China. For example, three-quarters of electric vehicle sales in the Thailand market in 2025 were Chinese brands, and Chinese imported electric vehicles accounted for 80% of the Malaysia market. Additionally, in Brazil, Mexico, and the Central Asia region, the share of Chinese electric vehicles exceeded 85%.

The "2026 Global Electric Vehicle Outlook" forecasts trends for the global electric vehicle market in 2026 and 2035. Fatih Birol, Executive Director of the International Energy Agency, stated that the decline in battery prices and potential policy responses to the current global energy crisis will provide further momentum for the electric vehicle market.

It is expected that global electric vehicle sales will reach 23.4 million units in 2026, accounting for nearly 30% of global car sales. Among them, China's sales are expected to reach 14.3 million units, up 8.33% year-on-year; Europe's sales are expected to reach 5 million units, up 19.05% year-on-year; US sales are expected to be 1.2 million units, down 20% year-on-year; and sales in other countries and regions are 2.9 million units, up 45% year-on-year. Regarding electric vehicle products, comprehensive automaker plans expect the number of global electric vehicle models in 2026 to break through 1,100, an increase of about 15%. Pure electric vehicle models account for about 65% of the total electric vehicle models.

With the accumulation of overseas inventory, Chinese electric vehicle exports are expected to face headwinds in 2026. According to 2025 data from the China Association of Automobile Manufacturers, electric vehicle exports exceeded overseas sales by more than 25%, indicating a significant increase in overseas inventory, which may limit additional shipment volumes. At the same time, rapidly changing trade policies may also be another obstacle to Chinese electric vehicle exports in 2026.

The "2026 Global Electric Vehicle Outlook" emphasizes that despite the impact of overseas inventory growth and trade policy shifts on Chinese electric vehicle exports, the momentum of Chinese electric vehicle exports will continue. The overseas sales targets of China's top ten automakers will exceed 7 million, approaching China's total automobile export volume in 2025.

With electric vehicles becoming increasingly cost-competitive in key markets, even without new incentive policies, by 2035 the global stock of electric vehicles (excluding two- and three-wheelers) is expected to surge from the current nearly 80 million to 510 million, with a market penetration rate reaching around 50%, and China and European market penetration rates reaching 90%. The International Energy Agency emphasized that by 2035, China will still be the world's largest electric vehicle producer, and more than one-quarter (6 million units) of electric vehicles sold in developed economies will be made in China.

(Head image generated by AI)

On June 1, Geely Automobile officially released the May 2026 sales report: Total group sales reached 237,637 units, achieving double growth month-on-month and year-on-year for three consecutive months.

The overall car market this year has not been easy, with many brands under pressure to adjust. Against the backdrop of overall market pressure and intensified industry competition, Geely carved out its own rhythm, making steady progress and running smoother. Especially in the new energy sector, sales reached 133,355 units in May, with penetration rate surging to 56.1%, exceeding half for four consecutive months, firmly establishing itself in the new energy main track.

In this eye-catching data, Geely Xingyuan is definitely the brightest one in the field — single month sales in May were 36,426 units, accounting for nearly 45% of Galaxy sales, truly a top-tier star.

1. May Sales Soar, Xingyuan Carries Half the Load

In May, four major brands under Geely exerted effort simultaneously: Geely Brand 182,528 units, Lynk & Co 20,732 units, Zeekr 34,377 units. The three lines of premiumization, globalization, and youthfulness were developing healthily and sustainably in sync.

As the group's new energy main force, Geely Galaxy sold 81,727 units in May, while the Xingyuan model alone contributed 36,426 units. Roughly for every two Galaxies sold, one is a Xingyuan. Accounting for nearly 45% of the Galaxy brand's share, it is the unquestioned sales leader. This achievement is not luck, but an inevitable result of long-term market reputation and product power accumulation.

Since its launch, the popularity of Xingyuan has never dropped: Cumulative deliveries exceeded 700,000 units in 573 days, selling one unit per minute, firmly holding the top spot in China's car market all-category sales champion for 2025; in 2026, it even broke into the global new energy top three in the first quarter, becoming the only model from a Chinese brand to enter the global top three.

From a home commuting small car to a global hit, Xingyuan has step-by-step turned the "Chinese Small Car" into a world showcase.

2. All-New Xingyuan Launches Refreshed, 61,800 Yuan Upwards, Five Champion Strengths Maxed Out

On May 28, the all-new Xingyuan officially launched. Limited-time benefit price 61,800 - 91,800 yuan. No flashy gimmicks, no trap-style configurations. With over 100 product power upgrades and 25 industry-unique hardcore strengths, plus the market heat that exploded upon launch, it defines the benchmark for 100,000-level pure electric small cars again. This upgrade is summarized in one sentence: Max out everything users care about most.

1. Powertrain Upgrade: Range and Fast Charging Both Top-Tier

The all-new Xingyuan series range is increased, with a maximum CLTC range of 480km (previous model 410km), anxiety-free daily commuting; the only in its class with CATL cells + liquid cooling temperature control + 11-in-1 highly integrated electric drive standard across the series. 30%-80% fast charging takes only 19 minutes, full charge departure in one coffee time, charging efficiency is the ceiling of its class.

2. Driving Control Beyond Class: Native Rear-Wheel Drive + Track-Level Tuning

Many people think cheap small cars are hard to drive, but Xingyuan directly breaks prejudice: The all-new Xingyuan is the first in its class to use a global native architecture, standard rear-wheel drive, and independent suspension pure electric small car. Stable chassis, responsive steering, easy to drive and park.

Joint track-level tuning by China and Germany, combining handling stability and flexibility. Moose test 80.7km/h, Fishhook test 130km/h successfully passed. Handling performance rivals 200,000 yuan level sport coupes; G-TCS 2.0 all-weather anti-slip system, G-CST 2.0 all-scenario comfort braking, not only can novices drive easily, veteran drivers can also find fun.

3. Intelligence Maxed Out: Flyme Auto 2 + Hanhu H3

Cabin intelligence comprehensively upgraded, equipped with Galaxy Flyme Auto 2, 7nm Longying No. 1 chip + 16G+128G large storage, operation is silky smooth. AI Eva voice assistant supports fuzzy instructions, context memory, car control and entertainment handled in one click. Also equipped with Hanhu H3 intelligent driving solution, Highway NOA, All-scenario APA parking, HPA memory parking (2km ultra-long memory), 1.38 billion km safe driving verification, smarter the more you drive, safer the more you drive.

4. Safety No Compromise, Small Cars Have Big Safety

Xingyuan has always emphasized: "Small cars must have big safety". The all-new Xingyuan uses a five-long-eight-transverse star-armor cage body. Roof compression strength reaches 3.4 times vehicle weight, protecting the passenger compartment to the maximum extent during collisions.

Battery safety is even stricter: National Standard 2x test standard, after 1000 cycles capacity still 90.72%, passed CCTV same-class only front + side continuous collision test. High voltage system power off timely, battery no fire, passenger compartment no deformation, guarding every trip. Simultaneously standard DOW door opening warning, AEB active braking, Sentry mode, active and passive safety fully maxed out, giving users full sense of security.

5. Breaking Out Overseas, Becoming the "Made in China" Calling Card

Xingyuan not only leads domestically, but in the overseas market it is a "Made in China" card, already landed in 30+ countries and regions. Brazil launched in 2 months sold 2,300+ units, Thailand auto show single week orders 3,300 units; won Brazil Annual Best Compact Electric Vehicle, Indonesia Auto Show Most Loved Electric Vehicle. Chinese small car, is shining on the world stage.

3. New Energy Penetration Rate 56.1%, Xingyuan is the Growth Core

In May, Geely new energy penetration rate reached 56.1%, breaking 50% for more than 4 consecutive months, transformation speed and quality are leading the industry. To achieve this, Xingyuan has contributed significantly. It accurately fits into the 100,000-level most mainstream market, did not blindly follow the price war, but won users with solid product power. With 61,800 yuan starting price + upgrade-level product power, breaking the "low price low quality" cognitive, touching millions of families with high quality and good price; relying on mature and reliable powertrain, safe and stable quality, intelligent and user-friendly experience, continuously accumulating user reputation, forming a market consensus: "Buy 100,000-level pure electric small car, choose Xingyuan first".

Summary:

From May single month 36,426 units, to cumulative 700,000 units; from China champion to global top three. Xingyuan did not breakout relying on gimmicks, but step by step, using range, fast charging, driving control, intelligence, safety five hard strengths, conquered 10 million users, and also became the confidence behind Geely's high-quality growth.

In the increasingly competitive car market, Geely's ability to achieve double growth for three consecutive months and new energy penetration over half cannot be separated from hit models like Xingyuan. In the future, the all-new Xingyuan will continue to deepen the 100,000-level market, bringing upgrade-level experience to more families, and also help Geely run steadier and farther on the new energy track.

"In the past, selling Toyotas, the first thing customers would say upon entering was: When can I pick up the car? Now the first thing is: Whose intelligent driving system does this car use?" This is what a Toyota 4S shop salesperson told me recently.

He entered the industry in 2018. At that time, the Camry had price markups, people queued for the Highlander, and the Alphard was like a financial product. The hardest part of selling Japanese cars was not selling the cars, but calming the customers' emotions.

But now, the one thing he does most every day is explain: 'Our cars actually use a lot of Chinese supply chains.' When he said this, his tone even sounded a bit proud.

Indeed, ten years ago, Chinese automakers were still figuring out how to make door gaps even; five years ago, Chinese new energy vehicles were completely overshadowed by the industry; and now, if Japanese cars want to do new energy well, the first thing has become: Connect to the Chinese supply chain first.

You will find that when an era truly ends, it is often not because someone fell.

Instead, people who were once high and mighty start to actively learn from you.

Recently, sales of Toyota's pure electric SUV broke ten thousand again. Many people interpret this as a 'Japanese counterattack'. But if you take this car apart to look, you will find things are not that simple.

Momenta Intelligent Driving, Hesai LiDAR, Desay SV Domain Control, FinDream Battery, CALB, Zhengli New Energy...

To put it bluntly, many so-called 'Japanese new energy vehicles' now look more and more like 'Japanese shells assembled by the Chinese supply chain'. But the issue is, this precisely shows that China's automotive industry has truly won. Because true industrial victory is never about crushing others, but even your rivals are forced to use you.

This is actually more terrifying than sales overtaking.

In the past, everyone always said Chinese automakers were 'overtaking on a curve'. Looking back now, this statement was actually too conservative. China's automotive industry isn't about overtaking at all; it's about changing the track entirely.

In the internal combustion engine era, why was the Japanese supply chain strong? Because that era competed on precision manufacturing, stable quality control, long-cycle iteration, and a closed supply system. To put it simply, it was 'slow work yields fine results'. Toyota's system was essentially the highest level of order in the industrial era.

The problem is, the new energy era is different.

Now it competes on iteration speed, software capability, cost control, supply chain collaboration, and large-scale rapid trial and error. In the past, a car model was replaced every five years; now there is an OTA update every half year; in the past, suppliers took three months to change a mold; now Chinese manufacturers take three weeks.

In the past, the strongest point of Japanese manufacturing was 'not making mistakes'. Now the strongest point of Chinese manufacturing is allowing rapid mistakes, then rapid evolution. These are two completely different industrial philosophies. So many people actually misunderstand Chinese new energy vehicles. Everyone always thinks Chinese automakers win because they are cheap. But what is truly terrifying is never the low price. It is that China now possesses 'cheap', 'good enough', and 'fast' all at once.

This is the most scary part. Because the most unsolvable thing in the industrial world is that you are cheaper than me and iterate faster than me. This is also why, today, more and more Japanese suppliers are starting to collapse. Many people see Japanese parts companies going bankrupt and think it is just a sales issue.

Actually, it's not. The real problem is that the industrial logic upon which the entire Japanese supply chain relies is starting to fail. In the past, the biggest moat for Japanese suppliers was the Keiretsu system. Toyota only used the Toyota system; Honda only supported the Honda supply chain. Denso, Aisin, Jtekt, Yazaki... the whole system was like a closed empire.

But in the new energy era, there is a particularly cruel thing: closed systems mean slow. And being slow is almost a mortal sin today.

So you will see a particularly absurd phenomenon. In the past, Chinese suppliers desperately wanted to get into the Japanese system; now Japanese automakers are coming to Chinese suppliers. Because without using the Chinese supply chain, cars simply cannot compete.

This is particularly obvious in Southeast Asia. Two years ago, many people were still discussing: 'Will Chinese cars fight fiercely with Japanese cars in Thailand?' But now it is found that it is not a 'head-to-head match'. Instead, the Chinese supply chain directly penetrated into Japanese car factories.

This is more ruthless than grabbing the market. Because grabbing the market is just grabbing sales. Grabbing the supply chain is equivalent to grabbing the industrial lifeline. In the past, one of the scariest points of Japanese manufacturing was that it controlled the Asian industrial system. Now this control is shifting. And it is shifting very quickly.

The most interesting thing is that the Japanese themselves actually realized the problem first. The Nikkei has started to frequently use words like 'Keiretsu Dissolution'. Translated, it is actually just one sentence: The core thing of the Japanese automotive industry is collapsing.

So today the most painful are no longer Japanese brands, but that group of Japanese suppliers. Because vehicle manufacturers can at least 'surrender'. The supply chain is not that easy to turn around.

Toyota can still use Chinese intelligent driving; Nissan can still accept Chinese batteries; Honda can still learn new EV brands to do cockpits. But what about those traditional suppliers?

All advantages established in the internal combustion engine era suddenly became useless. More cruelly, the most important things in the new energy era, batteries, intelligence, software, intelligent driving, China has almost occupied all of them.

So you will see a particularly darkly humorous picture. On one side, Japanese media are heartbroken over 'Japanese car soul handed over to China'; on the other side, Japanese suppliers are taking BYD orders again to stay alive. This is actually very much like dynastic transitions in history.

People of the old era will not disappear suddenly. They will first be shocked, then deny, then angry, and finally join.

Many people still think China's automotive industry is just 'new energy leading'. But I think the real change is far more than cars. Cars are just the most obvious open exam for China's manufacturing upgrade. Because cars are the crown of industry. Behind it are connected chips, materials, software, batteries, machinery, manufacturing, AI, automation, and supply chain collaboration.

Whoever wins the car has the qualification to reconstruct the next generation industrial order. And what is truly terrifying about China today is that a 'supply chain black hole effect' is starting to appear.

What is a black hole? It means all industries will eventually be sucked into it.

You make cars, you have to connect to Chinese batteries; you do intelligent driving, you have to connect to Chinese computing power; you do supply chains, you have to accept Chinese speed; you do manufacturing, you have to adapt to Chinese costs.

It is highly likely that a very realistic situation will appear in the future. Manufacturing industries that do not join the Chinese supply chain will find it harder and harder to stay at the table. This is not some nationalistic emotion. This is industrial law.

Because at the end of manufacturing development, it is no longer about single-point technology, but about who can compress the entire supply chain into 'one machine'.

And the strongest ability China has now is this. From batteries to intelligent driving, from parts to whole vehicles, from R&D to mass production, China's industry has truly formed a complete closed loop, super-large scale, super-high-speed iteration, and super-strong cost control for the first time.

This thing is what is truly making the whole world anxious today. So look back at those news of 'Japanese cars using Chinese supply chains'.

You will find that its true meaning is not 'Chinese parts entered the Japanese system'. It is that Chinese manufacturing has begun to become the global industrial system itself for the first time.

In the first four months of 2026, the pure electric vehicle market in Indonesia witnessed significant growth. Amidst this wave of green travel, BYD firmly secured the top position with absolute advantage, becoming the most eye-catching Chinese brand in the local market.

According to the latest data released by the Indonesia Automotive Industry Association, wholesale sales of pure electric vehicles by BYD in Indonesia reached a cumulative total of 17,098 units from January to April this year, successfully claiming the local electric vehicle sales championship. This figure not only far exceeds other brands but also validates BYD's strong competitiveness in the overseas market.

At the product level, BYD has constructed a rich and diverse model matrix in the Indonesian market. The Seagull, Yuan Plus, Dolphin, BYD M6, Seal, and Sealion 7, totaling six models, worked in synergy to cover full-scenario needs ranging from entry-level commuting to high-end travel. Whether for young first-time buyers or multi-person households, everyone can find electric vehicle models suitable for their specific needs within BYD's product line.

Entering April, BYD continued to maintain a strong growth momentum in the Indonesian market. Wholesale sales for the month once again ranked first in the industry, demonstrating the brand's increasingly strong recognition among Indonesian consumers. Behind every order lies a user's genuine trust in BYD's quality and service. From the streets of Jakarta to the suburbs of Bandung, an increasing number of BYD models are becoming a moving landscape on Indonesian roads.

It is worth noting that the success of the Indonesian market is not an isolated case. As a crucial link in BYD's global strategy, Indonesia, along with other overseas markets, is jointly scripting a new chapter in BYD's "going global" blueprint. From Southeast Asia to Europe, from Latin America to the Middle East, BYD is constantly refreshing the perception boundaries of Chinese automotive brands overseas with solid product capabilities and stable delivery capabilities.

Industry analysts believe that BYD has not only "gone out" but has truly achieved a deep qualitative transformation of "going in." This leap signifies that China's new energy vehicles have grown into trusted leaders on the global stage.

In May 2026, SAIC Commercial Vehicle sales reached 27,509 units, up 41% year-on-year; among them, new energy vehicle sales were 11,476 units, up 143% year-on-year, overseas sales were 12,392 units, up 56% year-on-year, with new energy and overseas sales lines both reaching new highs.

In the light commercial vehicle sector, SAIC Maxus sold 11,865 units in May, up 56% year-on-year. The Deliver series sales reached 5,934 units, up 197% year-on-year. Deliver V1 obtained Level 1 Energy Efficiency Certification from the China Quality Certification Centre. Regarding the Iveco brand, the Jiuxing EV completed delivery for Henan Laojun Mountain Cultural and Tourism Passenger Transport; Deyi and Jiuxing models received orders for specialized vehicles such as police and medical use.

Regarding pickups, SAIC Maxus pickup sales reached 7,223 units in May, up 58% year-on-year, and continues to implement a 7-day free trial policy. Regarding light trucks, Yuejin brand sales reached 4,287 units in May, up 41% year-on-year, with new energy models accounting for 67%, and new energy sales up 99% year-on-year. At the same time, Yuejin reached a cooperation with a Vietnamese commercial vehicle enterprise, layouting the Southeast Asian electric light truck market, and opened its first ecological operation center in Henan.

Regarding heavy trucks and buses, Hongyan delivered i Jieshi dump trucks in Taiyuan, Shanxi. Sunwin delivered 10-series low-floor pure electric city buses to Jiading Public Transport. In the parts segment, New Power Technology engine sales were 21,888 units in May, up 56.6% year-on-year, setting a new single-month sales record, maintaining double-digit growth for 5 consecutive months.

Regarding the overseas market, SAIC Commercial Vehicle exported 12,392 units in May, up 56% year-on-year. In Singapore, SAIC Maxus delivered eDeliver 5 to DHL (domestic model is Deliver V1). Plans are to launch Maxus T70 (Domestic new Interstellar L) in Australia and Chile in the second half of 2026, with current pre-market orders exceeding 800 units.

On June 1st, Geely Auto disclosed May sales data. A monthly sales volume of 238,000 units, double-digit growth in both year-on-year and month-on-year comparisons for three consecutive months, and a new high in overseas exports of 85,000 units — these numbers, placed together, outline not merely a stage-wise report card of a car manufacturer, but a self-affirmation of a structural growth trend.

But what truly deserves attention might not be the numbers constantly being broken themselves, but the two deep changes occurring behind the numbers: Geely's new energy transformation has moved from the stage of "penetration rate increase" into the stage of "value realization", and its global layout is also shedding the primary stage of "exporting for foreign exchange", turning towards true brand output.

New Energy Share at 56.1%: Over Half Becomes the Norm

In May, Geely new energy sales reached 133,000 units, accounting for 56.1% of total sales, standing above 50% for four consecutive months. This means that for Geely, "new energy over half" is no longer news, but the new normal.

Breaking it down, Zeekr delivered 34,377 units, a year-on-year increase of 81.8%, but what is more noteworthy are the two sets of data: "average transaction price per unit increased 52.4% year-on-year" and "Series 9 and Series 8 accounted for nearly 50%". In the current environment where price wars in the industry rise and fall, Zeekr achieved rising volume and price, which shows that brand premium in the high-end market is forming, rather than relying on price cuts to exchange for sales volume.

Lynk & Co May sales were 20,732 units, with a new energy share of 70.8%. This proportion was hard to imagine two years ago — Lynk & Co was once the brand with the strongest fuel vehicle tone under Geely, now new energy has become the absolute main force. The speed of transformation, in a sense, also reflects the depth of technology platform sharing within Geely: Zeekr's technology downward shift, Geely Galaxy's scale effect, are providing Lynk & Co with enough transformation ammunition.

Among Geely Galaxy's 81,727 units sold, the Star Wish single car model contributed 36,426 units. Delivering 700,000 units in 573 days, this speed is also top-tier in the global new energy market. Geely Galaxy brand named CCTV-5 "The Grand Banquet", becoming the 2026 World Cup broadcast partner — these actions indicate that Geely has realized: new energy is not just competition at the product level, but also a positioning battle at the brand perception level.

 

Single Month Overseas 85,000 Units: Globalization Enters the Second Stage

If domestic market growth is Geely's basic portfolio, then the explosion of overseas exports is the biggest variable beyond this round of financial reports.

May exports were 85,144 units, a year-on-year increase of 183.7%, among which new energy products accounted for 47.9%. This proportion is very key — in the past, when Chinese brands went overseas, the main force was often fuel vehicles, new energy vehicles were more of a "side business". But in Geely's overseas exports, nearly half is new energy, indicating that its electrification products have already possessed independent competitiveness in the overseas market.

Zeekr 7X took the first place in the sub-segment in Australia, Mexico, Malaysia and other places, Geely Star Wish topped the B-class pure electric two-door car sales champion in Mexico, Indonesia, Brazil — these are not at the level of "Chinese brands selling well locally", but actually pushing over existing local players.

What is more noteworthy is that Geely reached a strategic cooperation with the England National Team, becoming the official automotive partner of the 2026 Glasgow Commonwealth Games. This sports marketing global layout is often a watershed moment for a brand shifting from "selling products" to "building brands". Previously, only global top car companies like Toyota, Volkswagen would invest so heavily in top-tier sporting events. Geely is telling the market in this way: I don't just want to sell a few more cars, I want the world to know this brand.

"Value War" in the Price War

What the current Chinese automobile market lacks least is price wars. Starting with Tesla price cuts at the beginning of the year, followed by various car manufacturers following one after another, the two words "price cut" have almost become the main melody of the car market.

But in Geely's report card, another train of thought is seen: Zeekr 009 launches the seven-seat "Family Version", Lynk & Co 10 Series positions as mid-to-large sports pure electric sedan, Geely Galaxy Xingyao 7MAX emphasizes "Five Major Luxuries" — every new car is looking for its own sub-segment value and pricing anchor point, rather than simply following the market price reduction.

The risk of this strategy lies in that it requires the product itself to have enough product power to support premium pricing. And Geely's confidence may come from the data in the "Qianli Haohan Smart Travel China All-Domain Mobility Report": Auxiliary driving cumulative mileage 1.38 billion kilometers, cumulative avoidance 8.9 million times. Behind these numbers are real user usage data, not publicity talk from laboratories.

Geely Galaxy Starship 7 EM-i completed the super-standard double-sided chain limit collision test in the Euro NCAP lab, in a sense also transmitting the same signal: Safety is a hard strength that can be verified, not soft words written on the configuration sheet.

Summary

238,000 units monthly sales put in any market is a number worth attention. But for Geely, what truly deserves attention is not the number itself, but the structure constituting this number: new energy over half, overseas proportion continuously rising, high-end brand volume and price rising together.

This means Geely is shifting from a "sales-driven" car company to "value-driven". In the 2025 where price wars are raging like fireworks, this shift is not easy, but it might be a more sustainable direction.

Of course, challenges are equally clear: price wars in the domestic market are far from over, trade barriers and localization requirements in the overseas market are getting higher and higher, intelligent competition is moving from "piling up configurations" into the true technical deep water zone. Every step Geely takes next will not be easier than before.

But at least looking at the data from May, the direction is correct.

When many brands were still relying on price cuts to drive sales, Geely Automobile (including the three brands Geely, Lynk & Co, Zeekr) instead relied on consecutive 3 months of Year-over-Year and Month-over-Month dual growth (237,000 vehicles in May), quietly walking out another path. Behind this is not luck, but more like a designed "Methodology to Resist Involution".

For any manufacturer, product is always first. The reason Geely can achieve today's results is because they almost avoided all the price war disaster zones. In the interval called "Blood Sea Market" of 100,000 to 150,000 RMB, Geely did not simply pile up features for price reductions, but used Galaxy M7, Star Shine 7, and Starship 7 to form a "Technical Combo Punch" — for example, the Star Shine 7 MAX series comes standard with four-wheel drive, turning configurations that usually cost extra in the same class into basic models, using "Value Equity" to replace "Price Involution", which allowed the new car to break 5,000 units in the first month of launch.

Going deeper, its growth quality is hidden in the structure. The new energy penetration rate is 56%, meaning for every two cars sold, one is a new energy vehicle. However, looking closely at the composition, in Zeekr's 34,000 deliveries, 9 Series, 8 Series, and other high-ticket models accounted for nearly 50%. The average price per vehicle rose 52% year-over-year. This "rising volume and price" is more persuasive than simple sales figures. This shows its new energy growth is not relying on low-price electric vehicles to boost volume, but truly standing firm in the high-end market. Zeekr 009 continuously winning the championship in the MPV market above 400,000 RMB is the proof.

More importantly, the technical layout balances both short and long terms. In the short term, it relies on i-HEV hybrid technology to extend the life of the China Star series, allowing fuel vehicle users to complete upgrades without changing usage habits, which allowed the China Star to break 100,000 units in a single month. In the long term, it bets on 900V high-voltage architecture (Lynk & Co 10 Series), Qianli Haohan Smart Solutions, positioning itself early in the 200,000 to 250,000 RMB market. Even the acquisition of Radar Automobile seems calculated — avoiding price involution in passenger cars, targeting the pickup truck segment where users have low price sensitivity and high scenario premium. Now Radar is not only the domestic sales champion but has also captured the Thailand market, becoming a surprise weapon for profit optimization.

Geely's sales numbers prove one thing: When everyone is fighting with bayonets in the existing market, the true growth potential may be hidden in the analysis of user needs — not that users only buy cheap ones, but that users do not want to pay for "unnecessary premiums".

Note at the beginning:

After entering June, major automotive manufacturers started releasing their sales performance records for the past May. From the strong New Force Leapmotor to the exceptional BYD, they have become another topic of discussion in the automotive industry. It is not difficult to see that in the domestic car market, the landscape of Chinese car brands has slowly evolved from the former "Five Tigers" to the "Top Three Powerhouses" stance. In my mind, these so-called top three are BYD, Geely, and Chery. Of course, the evolution of the "Five Tigers" is a process, and the "Top Three" is not set in stone.

Today, this content provides a stage sales review and sharp commentary on the top five automakers, primarily targeting BYD, Geely, Chery, Changan, and Great Wall. Let's see how these five automakers performed in the market during the past May. The next content will mainly review New Force brands. Without further ado, here we serve the goods to you!

BYD: May sales 383,453 vehicles, standing out distinctly leading the way

Let's first look at BYD's performance in May. In the past May, BYD could be described as standing out distinctly and leading the way consistently. May BYD sales exceeded 380,000 units, reaching 383,453 vehicles, a year-on-year increase of 0.3% and a month-on-month increase of 19.3%. This is also the highest single-month sales for BYD since entering 2026. In the sales composition, the Ocean Network and Dynasty Network remain the absolute mainstays, with the cumulative sales of the two networks exceeding 330,000 units.

In addition, under the support of Titanium 7, Fang Cheng Bao also delivered a performance record of 30,186 vehicles. Denza and Fang Cheng Bao May sales were 16,303 vehicles and 286 vehicles respectively. In terms of the overseas market, BYD reached a new historical high in May, delivering 160,177 vehicles (passenger vehicles and pickups), a year-on-year increase of 80.7%.

From January to May this year, the BYD Group cumulative sales reached 1,405,039 vehicles, overseas market cumulative sales reached 614,470 vehicles, accounting for nearly 44%. It is worth mentioning that BYD New Energy cumulative sales have already exceeded 16.5 million vehicles, an undisputed global leader in New Energy.

Chery Automobile: May sales 247,823 vehicles, exports surge sharply, new energy climbs

Chery Automobile May sales were 247,823 vehicles, a year-on-year increase of 20.5% with a slight month-on-month decline. Although Chery's various brands have not yet announced specific sales data, from the sales composition perspective, the parent brand Chery and Jetour remain the main sales force of the Chery Automobile Group.

From the May sales data perspective, two data points are worth noting. First, Chery May export volume reached a shocking 181,871 vehicles, a year-on-year surge of 80.5%, and has beaten the record for a single month of Chinese car exports for three consecutive months, becoming the indisputable sales support of the Chery Group. In addition, Chery New Energy vehicle sales reached 100,304 vehicles, a year-on-year increase of 58.8%. Currently, Chery's New Energy composition consists of pure electric on one hand, and plug-in hybrid models developed vigorously on the other.

From January to May this year, Chery Automobile cumulative sales exceeded 1,100,921 vehicles, creating a new historical high for the same period. In addition, Chery Group global cumulative users have exceeded 19.62 million, of which overseas users exceed 6.59 million. Unsurprisingly, Chery will welcome an important milestone in July: cumulative users exceeding 20 million.

Geely Automobile: May sales 237,637 vehicles, ZEEKR surges, overseas explodes

Next, let's look at Geely Automobile's performance. In May, the Geely Automobile Group sales were 237,637 vehicles, achieving double-digit year-on-year and month-on-month growth for three consecutive months. Among the specific performance of each brand, the Geely brand remains the sales support of the group, May sales reached 182,528 vehicles, mainly due to the strong performance of Geely Galaxy, which delivered a record of 81,727 vehicles.

In addition, ZEEKR brand sales were 34,377 vehicles, Lynk & Co brand sales were 20,732 vehicles, the brand with the highest increase ZEEKR increased by 82%. Geely China Star Series performed stably, May sales 100,801 vehicles, year-on-year increase 16%, month-on-month increase 12.5%, still showing a double-digit year-on-year and month-on-month growth trend. Binyue, Boyue, Xingyue L, Xingrui, Emgrand, etc., all performed well.

In terms of New Energy, Geely Group cumulative sales reached 133,000 units, accounting for 56%, becoming its sales support. In terms of the overseas market, Geely was equally outstanding, delivering a performance of 85,000 units, a year-on-year surge of 184%, creating a new historical high, achieving double-digit year-on-year and month-on-month growth. In the first five months of this year, Geely Automobile cumulative sales exceeded 1.18 million, second only to BYD.

Changan Automobile: May sales 209,100 vehicles, New Energy steady, overseas situation excellent

In May, Changan Automobile continued its stable performance, delivering 209,100 vehicles, of which 70,700 vehicles were delivered overseas, a year-on-year surge of 38%. New Energy steady, May deliveries 92,400 vehicles, nearly completed sales support, also contributed the greatest force to Changan Automobile sales.

Looking at the brands separately, Changan Qiyuan May deliveries were 34,528 vehicles, among which the new Q05 performed outstandingly, single-month delivery of new vehicles 15,812 vehicles, only 3 days after launching in Thailand orders broke through the 3,000 units mark.

Deepal Automobile performance was equally excellent, May deliveries 33,243 vehicles, year-on-year increase 30%, among which Deepal S05 remains the brand sales support, single-month deliveries 18,866 vehicles, since listing, cumulative sales have already exceeded 220,000 units. From January to May, Deepal cumulative sales 130,531 vehicles, year-on-year increase 15%. Overseas market this year first five months Deepal deliveries 28,704 vehicles, year-on-year surge 167%.

Changan parent brand May deliveries 48,900 vehicles, with the launch and delivery of the fourth-generation Yiding Blue Whale Super Engine and the fourth-generation CS75 PLUS Blue Whale Super Engine dual vehicles, the starting price of 79,900 Yuan is also expected to further pull the sales of the Changan brand.

Changan Kaicheng May delivered new vehicles 21,100 units, New Energy deliveries year-on-year increased 21%, Avatr May sales 7,336 vehicles, Avatr 12 cannot be ignored, with the appearance of Avatr 07L, as the first batch of models equipped with Huawei Qiankun ADS 5, it is also expected to assist Avatr in the follow-up.

Great Wall Motor: May sales 100,399 vehicles, overseas increase significant

Great Wall Motor May market performance compared to other four, the performance record looks indeed thin. May delivered 100,399 vehicles, overseas market performance excellent, year-on-year surge 46.75%. From January to May this year, Great Wall sales new vehicles 475,815 vehicles, year-on-year slight increase 3.64%.

May Haval brand remains sales support, 55,478 vehicles performance let it occupy Great Wall Motor's half of the mountain. Haval SUV cumulative sales have reached 10.4445 million vehicles, still the best-selling SUV brand. With the listing of Haval Menglong PLUS, Haval Big Dog PLUS long-range version new vehicles successively, Haval sales is expected to welcome further breakthrough. For Haval brand, personally feel Haval H6 series currently a bit regretful, suggest Haval SUV can focus on Haval H6 this IP continue to exert force, create a model that can move volume, inherit classics while improving Haval SUV sales.

WEY May sales 8,119 vehicles, year-on-year increase 31.78%, WEY Gaoshan and Blue Mountain remain sales support. With the listing of the new model WEY V9X, WEY sales is expected to welcome further breakthrough, personally predict WEY next month sales breakthrough 10,000 units not a problem, but how to further breakthrough has become a difficulty placed in front of WEY CEO Zhao Yongpo.

Tank brand May sales 17,067 vehicles, historical cumulative sales 911,700 vehicles, this year break 1 million vehicle target not a problem. New Tank 700 listing continues hot sales, new Tank 400 also momentum just right, unfortunately previously popular Tank 300 series, continuously eaten away by other brands' new vehicle sales.

Great Wall Pickup May sales 13,628 vehicles, historical cumulative sales 2.9488 million vehicles, still China Pickup sales No. 1. With the arrival of Great Wall Cannon Hi4-T new vehicles, Great Wall Pickup sales also expected to further improve.

Great Wall ORA May sales 6,018 vehicles, year-on-year surge 206.88%. Currently ORA sales pillar still ORA Good Cat, with the listing of one-vehicle-multiple-power ORA 5, Great Wall ORA sales breakthrough 10,000 units not a problem.

Note at the end:

From the market performance of the above five Chinese automakers, BYD still leads continuously, Geely and Chery two automakers recent months sales not distinguish upper or lower, head to head, Changan then steady steps, in overseas market and New Energy market continue to exert force.

Compared to other four automakers, Great Wall market performance not good, but operation steady. Headman Wei Jianjun continuously appears, created powerful personal IP, also pulled brand influence. But the problem placed in front of Great Wall Motor is how to continuously follow up in the market, don't fall behind the first tier. Personally brand influence Great Wall no problem, product power and service also completely no problem, currently Great Wall needs to do is create blockbuster vehicles, how to improve automaker overall sales through new vehicles.

This article by [Car Market Special Review/Li Te'er] New Media Studio original production, author Beiyan, reproduction requires attribution.