On a single day last month, at least eight Chinese automakers—from big names like Great Wall Motor (GWM) to such smaller players as Leapmotor—unveiled new models. Six showed off new or revamped electric vehicles or other new energy vehicles (NEVs).
Local media dubbed July 16 “Crazy Thursday” for the automotive sector, using the name of a viral weekly discount campaign by Kentucky Fried Chicken.
This rush underscores the war of attrition in the world’s largest automotive market, as companies flood China with new releases in a scramble to keep up sales.
Chinese sales of EVs, plug-in hybrid vehicles, and other NEVs grew roughly 30% last year to 16.49 million units, according to the China Association of Automobile Manufacturers. EVs sales rose 38% to 10.62 million and accounted for 31% of total automotive sales, up six percentage points from 2024.
But these figures include exports, a key growth driver. Domestic sales of NEVs rose more slowly, climbing 20% to 13.87 million.
BYD remained head and shoulders above other Chinese automakers in terms of EV sales, with a 23% market share based on factory deliveries, data from MarkLines shows. Geely ranked second at 13%, followed by SAIC Motor at 12%.
Local automakers are fighting over a shrinking pie. Overall domestic automotive sales, including gasoline-powered vehicles, sank 21% on the year in the first half of 2026, while NEVs slid 13%. On top of weak demand, a lower cap on tax breaks for EV purchases played a role.
Automakers are trying to ride out the slump with new models, but their earnings are under strain. “Crazy Thursday” is not the only sign of escalating competition.
Last month, BYD executive vice president He Zhiqi posted an image on the Weibo social media app that he said had been sent to him by a colleague. It said that 542 models had been released from January to May, for an average of 3.6 per day—the same pace that people eat meals. This figure appears to include gasoline-powered models, but the post suggests that even top EV makers are worried about the level of competition.
“Even if you invest RMB 1 billion (USD 148.4 million) on one model and spend two years or more on development, the peak [of sales] doesn’t last even three months,” He wrote, calling the competition “brutal” and comparing the market to a gym meant to whip companies into shape.
BYD’s new vehicle sales in January to June shrank 16% on the year to 1.8 million units—the first decline for the half in six years. Sales of passenger EVs fell 15% to 860,000.
GWM projects a roughly 60% drop in first-half net profit, while midsize player Seres Group, which makes the Aito brand with Huawei, expects to post a net loss. State-owned Guangzhou Automobile Group (GAC) sees its losses widening. Besides the intense competition, the rising cost of batteries and semiconductors is weighing on profits.
Some expect the slump to last.
“We do not expect domestic vehicle demand to recover in the second half of the year,” William Li, founder and CEO of EV startup Nio, told an audience in Chongqing in mid-June. “Many households already own one vehicle.”
China’s auto market has grown steadily as many consumers have bought their first car. But with ownership rates rising, helped by the growing availability of lower-priced NEVs, Li indicated that automakers need to rethink their marketing and product strategies around customers replacing their old cars.
“The automotive market must shift from the traditional era of increasing volume to one that considers growth based on the premise of existing vehicle ownership,” he added.
But Li also argued that this year marks a faster transition to EVs. He pointed to Norway, where EV adoption has reached around 90%, as an example of where the Chinese market might be heading.
“The value consumers derive from EVs now far outweighs the inconvenience of charging or battery swapping,” he said.
China’s car market may be at a crossroads, but EV growth is expected to continue. In early July, the Chinese government unveiled a plan to raise the share of NEVs among owned vehicles to 30% by 2030, up from 13% at the end of June.
A former top official at the Ministry of Industry and Information Technology said in April that NEVs will probably account for more than 70% of new vehicle sales in 2030.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.
Note: RMB figures are converted to USD at rates of RMB 6.74 = USD 1 based on estimates as of August 25, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.