{"id":5035,"date":"2026-01-06T12:37:25","date_gmt":"2026-01-06T04:37:25","guid":{"rendered":"https:\/\/bccmedianews.com\/?p=5035"},"modified":"2026-01-06T12:55:13","modified_gmt":"2026-01-06T04:55:13","slug":"year-end-commentary-from-the-auto-circle-what-should-we-watch-in-chinas-homegrown-brands","status":"publish","type":"post","link":"https:\/\/bccmedianews.com\/?p=5035","title":{"rendered":"Year-End Commentary from the Auto Circle: What Should We Watch in China\u2019s Homegrown Brands?"},"content":{"rendered":"\n

Recently, Nikkei<\/em> published an article predicting that China\u2019s auto sales in 2025 are expected to reach 27 million vehicles, potentially surpassing Japan\u2014whose automakers have held the top spot for more than two decades\u2014to take first place globally. This is, of course, inseparable from the efforts of China\u2019s homegrown brands: new-energy penetration exceeding 60%, exports exceeding 7 million vehicles, L3-level driver-assistance hitting public roads\u2026 Looking back on 2025, what major events happened in China\u2019s auto industry? Looking ahead to 2026, how should the industry respond to market competition as high growth slows?<\/p>\n\n\n\n

Keywords for China\u2019s Homegrown Brands<\/strong><\/p>\n\n\n\n

BYD: Bad luck, a frenzy of going overseas, solidifying the leader position<\/strong>
BYD\u2019s 2025 sales were 4,602,436 vehicles, up 7.7% year-on-year. Among them, pure EV sales were about 2.26 million vehicles, surpassing Tesla to become the \u201cglobal pure-EV No. 1,\u201d which can be called a major shift in the competitive landscape of the global electric vehicle market.<\/p>\n\n\n\n

Another standout achievement came from going overseas. Full-year overseas sales exceeded 1.04 million vehicles (including passenger vehicles and pickup trucks), surging 145% year-on-year, cumulatively covering more than 110 countries and regions, making it one of the fastest-growing Chinese automakers in exports.<\/p>\n\n\n\n

In fact, BYD\u2019s marketing this year still ran into some \u201csmall episodes.\u201d Early in the year, its high-profile push for \u201cDivine Eye, ushering in an era of mass-market intelligent driving\u201d (a strategy of \u201cintelligent-driving egalitarianism\u201d) coincided with a driver-assistance \u201cstorm,\u201d which caused the overall pace of deployment to be delayed. And in the face of more intense market competition, the sales contribution of its main-selling models seemed not to meet expectations either: Dynasty Network\u2019s 2025 sales were about 1.88 million units, down nearly 10% year-on-year.<\/p>\n\n\n\n

Looking to 2026, on the one hand, consolidating product strength is the foundation. According to the BCC Research, as new technologies such as \u201cmegawatt flash charging\u201d are comprehensively implemented and the algorithm update frequency of intelligent-driving systems increases, BYD will, from late February through July\u2013August, roll out facelifts across Dynasty Network and Ocean Network models in succession, with upgrade priorities concentrated on improved range and in-vehicle system enhancements. On the other hand, overseas markets are the primary growth driver. At present, BYD\u2019s complete-vehicle passenger-car plants in Thailand, Uzbekistan, and Brazil have been completed and put into production; its first European plant in Hungary is also about to commence operations, with localization efforts gradually strengthening. For example, Fudi Power has already achieved mass production in Thailand and supplies motors and engines to complete vehicles; the consolidated 11th Business Division (four core processes + interior\/exterior trim components) is responsible for acquiring molds and dedicated production lines from small suppliers that are unwilling to go overseas and setting up local production lines in Thailand; Fudi Technology is also considering investing in Thailand to produce components that are fragile during transport or bulky in size (such as wiring harnesses, A\/C heat-dissipation modules, and subframes).<\/p>\n\n\n\n

Geely: Strategic focus, revitalizing the main business
<\/strong>Geely Group\u2019s full-year 2025 sales were 3.0246 million vehicles, up 39% year-on-year, exceeding its full-year sales target.<\/p>\n\n\n\n

After the \u201cTaizhou Declaration,\u201d the execution efficiency and\u529b\u5ea6 (force\/intensity) of resource integration under the \u201cOne Geely\u201d strategy have been plain to see. Whether it was completing Zeekr\u2019s privatization, integrating R&D and manufacturing resources across brands, or even ruthlessly shutting down \u201cYixing Robot,\u201d a project led by founder Li Shufu\u2019s son Li Xingxing, Geely demonstrated its determination and capability to concentrate resources for a \u201cdecisive battle\u201d in the automotive field. By closely tracking the industry\u2019s top players and pursuing a strategy of building blockbuster models, Geely Auto\u2014represented by Geely Galaxy\u2014achieved nearly 2.5 million vehicles for the year and a 47% year-on-year increase.<\/p>\n\n\n\n

Looking to 2026, Geely Group\u2019s overall sales target may be set at 3.5 million vehicles, corresponding to a 15\u201320% increase. The new-energy sales target is expected to be 2.1 million vehicles, with the share continuing to rise to 60%. Cost control for newly launched high-volume models will be the top priority, and Geely will also continue to raise the proportion of self-developed battery supply to optimize the supply chain.<\/p>\n\n\n\n

Chery: The long-held IPO dream fulfilled, showcasing prowess overseas
<\/strong>Chery Automobile\u2019s full-year 2025 sales were 2,806,393 vehicles, up about 8% year-on-year. Overseas exports were 1,344,020 vehicles, up 17.4% year-on-year, ranking No. 1 in Chinese-brand passenger-vehicle exports for 23 consecutive years.<\/p>\n\n\n\n

Some say Chery\u2019s listing is the result and medal of China\u2019s auto industry moving from a very low starting point\u2014through reverse engineering to forward R&D\u2014steadily building foundational engineering capabilities, continuously striving upward, and going global. It is also attracting more and more overseas dealers to visit China and discuss cooperation. An interesting example is that the first batch of 220 units of its Mojia robots have all been delivered to overseas dealers, used for store traffic attraction, corporate brand promotion, and sales-support \u201cQ&A and problem-solving.\u201d<\/p>\n\n\n\n

Looking to 2026, the shift from \u201cmanufacturing\u201d to \u201cintelligent manufacturing\u201d will undoubtedly remain Chery\u2019s direction of striving, and the overseas market will be the same. Information from the BCC Research shows that Chery plans to set up a software R&D center in Germany focusing on localized software development, and to gradually realize localized procurement in overseas factories such as its Spain plant. Based on Chery International\u2019s many years of overseas operating experience and its delegation standards, after the mass production of the third model, it will grant independent sourcing authority and module-level cost-setting authority, further improving Chery\u2019s efficiency and competitiveness across different overseas regions.<\/p>\n\n\n\n

Changan: A new central SOE, a new atmosphere<\/strong>
Changan Automobile\u2019s full-year 2025 sales were 2.913 million vehicles, up 8.5% year-on-year, setting a sales high for nearly the past nine years.<\/p>\n\n\n\n

On July 29, China Changan Automobile Group Co., Ltd., upgraded into an independent central state-owned enterprise (central SOE), was officially inaugurated in Chongqing. Chairman Zhu Huarong remarked with emotion, \u201cThe world facing the new Changan is so vast\u2014I see nothing but full opportunities, with a feeling that it is inexhaustible and never-ending.\u201d One leadership team, efficient decision-making, professional talent, a younger team\u2014Changan Automobile has indeed shown the new look of a \u201cnew central SOE.\u201d And as the BCC Research shows, by establishing an official-account matrix under the new central SOE system and strengthening the central-SOE IP image, Changan Automobile aims to capture one-third of new-media channel share through its self-operated lead-generation system. Whether it is Deepal Auto or Avatr, their brand images have been thoroughly established and are steadily contributing sales.<\/p>\n\n\n\n

Looking to 2026, along with the management team\u2019s \u201cmilitary order\u201d pledge, the group\u2019s marketing budget will set a total increase of 30% based on the sales-growth target, shifting more resources toward younger brands such as Deepal.<\/p>\n\n\n\n

Harmony Intelligent Mobility: Product iteration efficiency and determination to go upmarket
<\/strong>Harmony Intelligent Mobility\u2019s full-year 2025 sales were 589,107 units, up 32% year-on-year, reaching \u201cone million deliveries\u201d in just 43 months, setting the fastest record among China\u2019s new-entrant brands.<\/p>\n\n\n\n

Whether it is the adjustment-and-correction efficiency shown by the facelift of the AITO M7, or the project-management capability in managing product programs across the \u201cFive AITOs\/\u2018Five Jie\u2019,\u201d compared with hard-core strengths such as intelligent-driving capability, Huawei\u2019s managerial \u201csoft power\u201d in the automotive field is gradually becoming evident, and its strategic determination to invest in the automotive field is clear. One piece of supporting evidence is the creation of the Maextro S800: its positioning fully benchmarks the Maybach product system; it does not consider sales targets; all of Huawei\u2019s top-tier core technologies will be applied to the Maextro models with cost not being a constraint; the core goal is to build Huawei\u2019s top-level product competitiveness.<\/p>\n\n\n\n

Looking to 2026, aside from the Maextro segment still being a blue-ocean market, Harmony Intelligent Mobility\u2019s market challenges remain significant. Therefore, on the one hand, the Maextro brand will successively launch an SUV (possibly launched in 2027) and an MPV (possibly released in mid-2026) developed on the same platform as the S800, forming a complementary product matrix. On the other hand, the downstream \u201ctrickle-down\u201d of core technologies will also empower sales across the other \u201cJie\u201d brands.<\/p>\n\n\n\n

NIO: The success of the second-brand strategy<\/strong>
NIO\u2019s full-year 2025 sales were 326,028 vehicles, up 46.9% year-on-year, setting a new historical high.<\/p>\n\n\n\n

Probably no one would have been so optimistic: NIO, which was still \u201cin the ICU\u201d at the start of the year, was able to achieve a \u201ccomeback from the brink\u201d by relying on its much-criticized multi-brand strategy. Ledao\u2019s full-year sales exceeded 100,000 units, and firefly (Yinghuochong), positioned as a boutique small car, also maintained monthly sales steadily above 5,000 vehicles. More importantly, NIO seems to have finally solved production-side issues and optimized its delivery chain (including optimization of insurance online processing and vehicle-registration filing processes, standardization and streamlining, etc.), and the brand momentum it has insisted on building is gradually releasing its potential.<\/p>\n\n\n\n

Looking to 2026, NIO\u2019s cost-control capability may be taking effect. Information from the BCC Research shows that through strategies such as reducing workstations and localizing core components, the manufacturing cost of the new ES8 has dropped by 20\u201330%, driving an overall shift in capacity allocation away from NIO\u2019s 5566 models and fully toward Ledao L90 and NIO ES8.<\/p>\n\n\n\n

XPeng: A vivid and distinctive tech identity<\/strong>
XPeng\u2019s full-year 2025 sales were 429,400 vehicles, surging 126% year-on-year, setting a new annual delivery record.<\/p>\n\n\n\n

Putting aside the repetitive \u201cXPeng imitates Tesla\u201d argument, what can indeed be seen is that after stabilizing its core auto business, XPeng is one of the rare automakers in China\u2019s circle that displays an exceptionally strong tech identity: from the end-to-end autonomous-driving VLA large model, to the new-generation humanoid robot Iron with a highly anthropomorphic catwalk gait, and the XPeng AeroHT \u201cLand Aircraft Carrier\u201d planned to achieve scaled mass production and deliveries in 2026, XPeng is step by step completing its industrial blueprint for \u201cphysical AI,\u201d and it has gained more future growth space that invites imagination.<\/p>\n\n\n\n

Looking to 2026, monetizing this tech identity may be the \u201cfinishing touch.\u201d XPeng plans to launch a limited-edition Robotaxi model for the consumer market in the second half of 2026 (based on L4 intelligent-driving technology). Whether it can transform from a vehicle manufacturer into an AI technology company is worth watching.<\/p>\n\n\n\n

Li Auto: Sales volatility, intensifying competition<\/strong>
Li Auto\u2019s full-year 2025 sales were 406,300 vehicles, down 18.8% year-on-year, failing to meet its annual target.<\/p>\n\n\n\n

Competition for the extended-range L-series products has intensified, and the pure-electric i-series products have not met expectations. Whether it can stage a recovery may depend on the next-generation version of its extended-range models next year.<\/p>\n\n\n\n

Looking to 2026, according to the BCC Research, Li Auto will comprehensively upgrade existing configurations, including increasing battery-pack capacity, iterating the extended-range generator version to improve thermal efficiency, comprehensively upgrading intelligent-driving software and hardware (including adopting self-developed chips), increasing interior screen size and resolution and enlarging the refrigerator size, adding lateral support to seats and improving bolstering and materials, optimizing chassis tuning and headlight styling design, and so on.<\/p>\n\n\n\n

Leapmotor: A new winner of economies of scale<\/strong>
Leapmotor\u2019s full-year 2025 sales were 596,555 units, up 103% year-on-year, becoming the biggest annual winner among \u201cnew entrants\u201d.<\/p>\n\n\n\n

Leapmotor may be the \u201cnew entrant\u201d player with the most thorough understanding of economies of scale; its experience in controlling the sales-to-inventory ratio and gross margin, among other things, is commendable. However, according to data from the China Passenger Car Association (CPCA), the RMB 100,000\u2013150,000 price band (USD equivalent not stated in the source) where Leapmotor\u2019s main force sits is also the most fiercely competitive price band in China\u2019s auto circle.<\/p>\n\n\n\n

Looking to 2026, whether the C-series models can hold steady, whether the D-series can help the brand move upmarket, and whether the A-series can meet demand in the small-car market will be tests Leapmotor must face one by one. And with Stellantis\u2019 resources, an overseas sales plan of 100,000 units may become the fallback move supporting development.<\/p>\n\n\n\n

Xiaomi: Smooth deliveries, reshaping the brand<\/strong>
Xiaomi Auto\u2019s full-year 2025 sales may exceed 410,000 vehicles, and Lei Jun bluntly said, \u201cI am very satisfied with this result\u201d.<\/p>\n\n\n\n

With two models advancing in tandem across different sub-segments\u2014Xiaomi SU7 (the sales champion among sedans priced above RMB 200,000; USD equivalent not stated in the source) and YU7 (ranked No. 1 in sales among mid-to-large SUVs for four consecutive months)\u2014Xiaomi Auto has gained a firm foothold in a fiercely competitive auto market, and it even once created a marketing whirlwind that other players in the auto circle found hard to match.<\/p>\n\n\n\n

However, brand momentum is a double-edged sword, and shifts in traffic winds are hard to predict.<\/p>\n\n\n\n

Looking to 2026, perhaps what Xiaomi can still do is make the product well, push forward the plan for the Wuhan plant to start production, and run through the story of the \u201chuman\u2013car\u2013home full ecosystem.\u201d According to the BCC Research, Xiaomi is planning three new models, including a full-size extended-range SUV benchmarking Li Auto\/AITO 9 series, an executive-sedan-class SU7 long-wheelbase version, and a YU7 sport version.<\/p>\n\n\n\n

There are many players, and the story is long\u20142026, let\u2019s wait and see!<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

[Disclaimer]<\/strong>: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.<\/p>\n","protected":false},"excerpt":{"rendered":"

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