A major shift has occurred in the global automotive landscape, specifically within the massive Chinese market. After maintaining a dominant position for two years, the Tesla Model Y has officially lost its crown as the best-selling vehicle in the country. Data released for the year 2025 reveals that a domestic electric vehicle has surged past the American giant, signaling a changing of the guard. The new leader is not from the widely known BYD lineup, which comes “contrary to expectations” for many industry analysts. Instead, the top spot has been claimed by the Geely Galaxy Xingyuan, a compact electric vehicle that has resonated strongly with local buyers.
The Geely Galaxy Xingyuan secured the first position with an impressive sales figure of 465,775 units delivered throughout the year. This performance pushed the Tesla Model Y down to third place, with 425,337 units sold. The displacement of Tesla from the top rank marks “a great turnaround on one of the most competitive automotive markets in the world.” The success of the Geely model can be attributed to its combination of modern design, practical technology, and an extremely aggressive price point. The vehicle is currently sold in China with a starting price of 65,800 CNY, which translates to approximately $9,100.
Between the new champion and the former king sits another domestic favorite. The second best-selling car in China for 2025 was the Wuling Hongguang Mini EV. This tiny electric hatchback has been a consistent hit since its debut, known for its ultra-low cost and city-friendly dimensions. The 2025 rankings show a diverse mix of vehicles, but the dominance of domestic brands is undeniable. While Tesla remains a significant player, the pressure from local manufacturers offering high-tech vehicles at lower prices is intensifying.
Another notable development in the rankings is the performance of the Xiaomi SU7. The tech giant’s entry into the automotive space has proven successful, with the SU7 landing in eighth place with 258,164 units sold. Significantly, this model managed to outsell Tesla’s other primary offering, the Model 3, which fell to the eleventh spot. The report notes that “the Chinese newcomer outperformed its direct competitor,” highlighting the rapid acceptance of tech-focused automotive brands by Chinese consumers. The Xiaomi SU7 has been praised for its integration with the company’s ecosystem of phones and smart home devices.
BYD, while not taking the absolute top spot with a single model, continues to have a massive presence in the top ten. The BYD Qin Plus secured the fourth position with 387,315 units, followed by the BYD Seagull in sixth place with 310,956 units. The BYD Qin L also made the list at seventh place. When looking at the broader picture, domestic manufacturers like Geely and BYD are leveraging their vertical integration and supply chain dominance to offer vehicles that Western competitors struggle to match in terms of value.
The list of top sellers also includes a few traditional internal combustion and hybrid survivors. The Nissan Sylphy, known as the Sentra in the United States, managed to hold onto the fifth spot. It remains the best-selling gasoline-powered vehicle in the country, a title it held more broadly before the electric vehicle boom. However, the overall trend is heavily skewed towards “New Energy Vehicles,” a category that includes both battery-electric and plug-in hybrid models. The rapid rise of models like the Galaxy Xingyuan demonstrates how quickly consumer preferences can shift when affordable electric options become available.
Geely, the parent company of the new market leader, is a massive conglomerate with a global footprint. Beyond its domestic Geely Auto brand, the company owns Volvo Cars, Polestar, Lotus, and Zeekr, and holds a significant stake in Aston Martin and Mercedes-Benz. This extensive portfolio allows Geely to share technology and platforms across its brands, reducing development costs and accelerating the pace of innovation. The Galaxy series was launched specifically to target the mid-to-high-end new energy market, but the Xingyuan has evidently captured the entry-level segment with great success.
The Chinese automotive market is the largest in the world and serves as a bellwether for global electric vehicle trends. The government has heavily subsidized the sector for over a decade, creating a fierce environment where hundreds of manufacturers compete for market share. This competition has led to a “price war” that has driven down the cost of electric vehicles significantly, making them accessible to a wider range of consumers. The availability of cars like the Galaxy Xingyuan for under $10,000 stands in stark contrast to Western markets, where affordable electric vehicles remain scarce.
Battery technology plays a crucial role in this price advantage. Chinese companies dominate the global supply chain for lithium-ion batteries, particularly those using Lithium Iron Phosphate (LFP) chemistry. LFP batteries are generally cheaper and more durable than the Nickel Manganese Cobalt (NMC) batteries often used in Western EVs, although they have a slightly lower energy density. By utilizing these cost-effective batteries, manufacturers like Geely and BYD can offer vehicles with respectable range at a fraction of the cost of their international rivals.
As the global industry watches these developments, the question remains whether these affordable models will eventually make their way to other markets. Tariffs and trade barriers currently hinder the export of some of these vehicles to regions like North America and Europe. However, the sheer volume of sales in China provides these companies with the capital and scale to expand their operations elsewhere. The displacement of Tesla in China could be a precursor to increased competition in other territories as Chinese brands continue to mature and refine their products.
Let us know in the comments if you would consider buying a $9,000 electric car like the Geely Galaxy Xingyuan if it were available in your country.
