Tesla, Elon Musk’s electric vehicle company, is going through a rough patch lately. The company which was once seen as a beacon of the EV revolution is now going through a phase marked by increased competition and financial pressures. Tesla, even though it is hailed for its technological prowess, seems to be overshadowed by a slew of Chinese EVs that are making a splash.
In the last decade, the EV industry in China has transformed from a budding segment to something that commands global attention. Until last year, China had around 137 electric vehicle brands operating in its market. The EV market here is bolstered by strong government support in terms of subsidies, incentives for R&D, and a push for infrastructure development. Over the years, companies like BYD, Xpeng, and Li Auto have emerged as major players. While initially these companies focussed on delivering affordable EVs, technological advancements in battery technology, AI, and autonomous driving saw companies coming out with ultra-luxurious EVs.
Today, Chinese EVs rival Tesla in both tech and scale. They are expanding, and with the kind of amenities and features being offered at competitive prices, Chinese EVs are reshaping the global EV industry. Here is a closer look at the top EV brands in China that are rivalling Elon Musk’s Tesla.
BYD
BYD is one of the top EV makers from China, based out of Shenzhen in Guangdong. The company was founded in 1994 by Wang Chuanfu along with 20 others as a battery manufacturing company. Chuanfu is currently the chairman and CEO of the BYD company. Today, the EV maker is known for its futuristic cars that blend innovation and aesthetics. Earlier this year, it was reported that BYD overtook Tesla in China by the sheer number of vehicles produced in 2023.
Tesla’s Model Y was the best-selling fully battery-powered car in China for the six months until November in 2024. However, cars from BYD were four of the top 10 cars that were sold during that time. Some of the popular BYD cars are Qin Plus, Seagull, Song Plus NEV, Yuan Plus, Dolphin, etc. BYD’s Qin Plus sold about 400 more units than Tesla’s Model Y in China in the second half of 2024. The BYD cars that became popular among the masses sport compact design and innovation that cater to conscious consumerism.
Nio
Nio is a Chinese electric vehicle company based out of Shanghai. Established in 2014, Nio has been largely known for its battery-swapping stations across China. However, it has carved a niche for itself in the semi-autonomous and autonomous vehicle technologies. Onvo is a sub-brand of Nio which was created in 2024 with an aim to target the masses.
Last year, Nio introduced its first car under Onvo to challenge Tesla’s best-selling Model Y. At the time, the new Onvo L60 was introduced at a starting price of 219,900 yuan ($30,465), cheaper than the Model Y, which came at 249,900 yuan. Nio launched its first EV when Tesla has been struggling with falling sales in the face of intense competition from Chinese EV brands. During the launch, Nio’s chief executive William Li said that the company aimed to rival Tesla’s Model Y and RAV4 by Toyota.
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Zeekr
Zeekr is yet another prominent automobile company in China which was founded in March 2021 as a premium electric mobility brand. The company’s first car, Zeekr 001, was unveiled in April 2021 at Auto Shanghai and was based on the SEA platform, which stands for Sustainable Experience Architecture Platform. The car stood out with its shooting brake design that was similar to the Porsche Panamera. In April this year, the company introduced its latest Zeekr 7X to rival Model Y from Tesla.
The new car is also based on the SEA platform and uses the rear quarter window that gives it an impression of a coupe even though it sports a standard SUV shape. The car unveiled at the Chengdu Auto Show competes with the Tesla Model Y and XPeng G6. The Zeekr 7X flaunts a futuristic infotainment setup powered by the Qualcomm Snapdragon 8295 automotive chip along with plush interiors and unmatched luxury.
Li Auto
This Beijing-based EV manufacturer is widely known for its electric vehicles that come equipped with range-extender petrol engines. While the company has its headquarters in Beijing, all its cars are designed, engineered and manufactured in Changzhou in Jiangsu, China. The company was founded by Li Xiang in 2015 and aims to ‘create a mobile home, create happiness.’ In 2019, the company introduced its first car, Li ONE, an extended-range electric vehicle (EREV) aimed at catering to family needs with seating arrangements and trunk capacity.
Largely, the brand is known for its focus on family-orientated vehicles. Some of the popular cars by Li Auto are Li L9, Li L8, Li 7, and Li Mega. Cars from the brand sport minimalistic and sleek designs with intuitive features and even autonomous parking. The L9 comes with a dual-motor all-wheel drive system and a spacious interior with three-row seating, and it features advanced driver assistance features.
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XPeng Motors
Although founded as an electric vehicle company in 2019, XPENG Motors has evolved as a global AI mobility company. XPENG is renowned for making intelligent electric vehicles with a focus on technology such as advanced driver-assistance systems and in-car infotainment. The most popular cars from the brand are the G9 and G6, which are known to be high-performance SUVs known for their high-quality interiors and use of advanced technologies. With its expanding presence in China, XPeng has emerged as one of the key competitors to Tesla. Last year, the company launched its low-priced EV with self-driving technology. Its Mona M3 EV starts at 119,800 yuan ($16,800), which is nearly half the price of the Tesla Model 3, priced at 231,900 yuan ($32,500).
At present, China is offering a wide range of options across different price brackets, indicating the presence of a thriving market with numerous players. Backed by government support and cutting-edge innovations, most of these brands have already made their presence felt in various parts of the world. Even though some of the brands are not selling in the US, a number of them are making inroads into the European markets. Chinese EV makers are expanding their footprint, signalling an imminent threat to the likes of Tesla, Ford, BMW, etc.
