China's leading electric car manufacturer BYD recorded record sales of 514,809 electric and hybrid vehicles in December. This marked the third consecutive month with sales exceeding 500,000 vehicles and increased annual sales by 41% to a total of 4.3 million units. The export market also showed strength: international sales rose by 58% in 2024 to over 57,000 vehicles.

BYD's success was complemented by strong results from its local competitors. Li Auto also achieved a record month in December with 58,513 vehicles sold, raising the annual sales to 500,508 units. NIO recorded a growth of 73% in December with 31,138 vehicles sold and delivered a total of 221,970 units in 2024. XPeng delivered 36,695 vehicles in December, an increase of 82% compared to the previous year, reaching 190,068 vehicles for the entire year. The newcomer Xiaomi reported 25,000 units sold in December and a total of 135,000 vehicles since the debut of its first model in March.

Tesla has yet to announce its sales figures for the fourth quarter.

A government program that promoted the exchange of old vehicles for new ones significantly boosted demand in the fourth quarter. Additionally, many manufacturers lowered prices in December to meet their annual targets.

Angus Chan, analyst at Bocom International, described the December sales as expected but warned of possible price competition in the first quarter of 2025. An anticipated year-end demand could also slow growth at the beginning of the year.

Despite strong sales figures, Chinese EV stocks were under pressure on Thursday. BYD shares fell 2.7% in Hong Kong as the good results were largely priced in, according to Nomura analyst Joel Ying.

The extension of the state subsidy program remains a key factor that investors will pay close attention to in 2025.