BYD Forecasts Electric Vehicles to Dominate 80% of China’s Auto Market

08 September 2025, Bavaria, Munich: Stella Li, Vice President of BYD, addressed a presentation at the International Motor Show IAA in Munich on September 8, 2025.

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As China’s electric vehicle (EV) sales growth decelerates, BYD anticipates the nation’s EV market to expand significantly, contrasting with smaller rivals like Nio, which recently declared the industry’s “golden era” has passed.

Executive Vice President Stella Li stated during an interview with CNBC’s Arjun Kharpal that China’s EV penetration rate could approach 80% due to ongoing technological advancements.

Supported by government incentives and a diverse range of vehicle options, hybrid and battery-electric vehicle adoption has surged, surpassing 50% of new passenger car sales in 2024 and reaching a record 62.9% in May, per the Chinese Passenger Car Association.

Globally, EV penetration remains lower: approximately 10% in the U.S. and 25% worldwide, according to the International Energy Agency.

U.S. tariffs imposing a 100% tax on Chinese-made EVs have hindered local sales. BYD, alongside other firms, was added to the Pentagon’s list of Chinese military-affiliated companies on Monday. The company did not respond to requests for comment.

BYD remains confident in its domestic market, emphasizing advancements in battery technology.

Domestic demand for BYD’s EVs now exceeds twice the company’s current supply capacity, attributed to its ultra-fast charging technology, which can deliver a 70% charge in five minutes.

Gas-powered car sales in China dropped 39% in May compared to the previous year, the CPCA reported, citing rising oil prices linked to Middle East conflicts.

Looking forward, Li anticipates competition will shift toward driver-assist features.

BYD expanded insurance coverage for “L2+” driver-assist users on May 28, which Li projects could increase customer adoption by 5 percentage points, reaching at least 95%. The automaker also unveiled its proprietary driver-assist chip.

For the time being, BYD will continue utilizing Nvidia’s driver-assist chipsets, despite employing 7,000 engineers for semiconductor development—a small fraction of its total workforce of 869,600, as per its 2025 annual report.

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