In Short : Some unexpected winners have emerged from China’s escalating EV pricing battle. Since 2022, the leading company BYD has been surpassed in a number of performance indicators by mid-sized automakers including Leapmotor, Xiaomi, and Xpeng, indicating a change in the way competition unfolds in the clean mobility ecosystem.
Scale is outshone by agile innovators.
By relying on cutting-edge internal technology and an engaging brand story, these challenger brands have capitalized on capabilities beyond size. Xpeng cut its losses by more than half, Xiaomi significantly reduced its operational losses while announcing significant total net profits, and Leapmotor made its first half-year profit.
Licensed inventions and R&D expenditures pay off.
Compared to their larger competitors, these businesses routinely devote a larger portion of their sales to research and development, particularly for assisted-driving systems. Global OEMs like Stellantis and Volkswagen have even licensed Leapmotor and Xpeng’s innovations, indicating that Chinese EV innovation is becoming more and more recognized.
Market momentum, sales growth, and branding
In contrast to BYD, which had a relatively modest 75% recovery, Xiaomi and Leapmotor saw spectacular stock price rises of approximately 500% and 200%, respectively. Leapmotor more than quadrupled its market share, while Xiaomi alone sold close to 160,000 EVs in the first half, highlighting how branding and quick thinking are changing the game.
