China’s EV Giants See Surprising Slowdown—What’s Driving These Shocking June Drops?

Electric Car Crunch: Why China’s Biggest EV Brands Lost Steam in Early June 2025

China’s top electric vehicle makers faced major declines in insurance registrations this June—discover which brands felt the pinch and what’s next.

Electric vehicle fever cooled dramatically in China at the start of June 2025, as leading brands—including Nio, Tesla, and BYD—saw insurance registrations tumble. These numbers, a key indicator of market momentum, signal that even industry giants aren’t immune to the ebb and flow of consumer demand.

Why are China’s once unstoppable EV champions suddenly hitting the brakes? Let’s break down the latest numbers, the big winners and losers, and what it all means for the global electric vehicle landscape.

Why Did China’s EV Sales Plunge in Early June?

Insurance registrations, which essentially track new EV deliveries to customers, took a nosedive among top automakers during the first full week of June. Market analysts explain that sales often dip just after monthly quotas close and ahead of new incentives or product launches. June’s chilly start may also reflect rising competition and maturing consumer preferences.

Who Were the Biggest Losers and Surprise Winners?

• Nio Inc (Nio, Onvo, Firefly): 4,340 insurance registrations, marking a 19.63% weekly drop.
• Nio main brand: Down 12.33% week-on-week.
• Onvo: Down 14.29%.
• Firefly: A dramatic 49% decrease.
• Tesla: Down 33.54% from the prior week, with just 8,640 registrations.
• BYD: Still the juggernaut with 54,850 units, but down 8.28% from the week before.
• Leapmotor: The outlier—registrations climbed 4.76%, bucking the downward spiral.

Xpeng, another major player, suffered a steep 42.60% weekly plunge, though its May numbers remain strong, showing over 230% year-on-year growth. Zeekr and Xiaomi also saw significant declines, despite Xiaomi’s recent entry into the SUV market generating buzz.

For more on the EV landscape, visit Tesla, Nio, Xiaomi EV, and BYD.

What’s Driving the Downturn? (And Can It Reverse Fast?)

Several factors are at play:

• Start-of-month sales slumps are typical as automakers reset targets.
• Major brands like BYD initiated hefty discounts, spurring a brief rush followed by a lull.
• Chinese consumers are increasingly spoilt for choice as new models debut monthly.
• Seasonal and economic uncertainties may have buyers holding back for even better deals.

Despite the dip, most big EV makers reported solid May deliveries, underlining robust year-long demand—even if June started soft.

How Do These Trends Affect the Global Electric Vehicle Race?

China’s EV market is the globe’s largest by far. These swings shape supply chains, pricing, and even product planning worldwide. Tesla’s Shanghai Gigafactory, for example, feeds both the Chinese market and exports across Europe.

If the sales slowdown lingers, prospective buyers elsewhere could soon see ripple effects in pricing and availability. For global investors—and consumers—what happens in China doesn’t stay in China.

What Should EV Shoppers Watch for Next?

• Expect fresh incentives and discounts as automakers seek to reignite demand.
• Watch for new launches like Xiaomi’s YU7 SUV this July, which could shift the sales dynamic.
• Industry followers should keep an eye on insurance registration stats—these offer real-time insight into EV momentum before official sales data drops.

Stay up to speed: If you follow electric cars, the next few weeks will be critical.