Summary of Key Points
In June, there was a clear divergence in sales among new entrants in the automotive industry: ZeroRun surpassed the industry's monthly sales record with over 93,000 units sold, lifting the ceiling for new players from the 80,000 range to the 90,000 range; NIO and Xpeng both exceeded the 40,000 unit mark, ending the period of stagnation in this segment. Brands like Li Auto and WM Motor are still struggling in the 30,000 unit range, with some experiencing a decline in sales month-on-month. The debate over technical approaches—pure electric vs. extended-range—has intensified. At the same time, the industry has entered a phase of elimination, where scale becomes a critical factor for survival, and it is likely that many new players will be eliminated or acquired in the future.
1. ZeroRun Breaks Through 90,000 Units: New Players Raise the Sales Ceiling, Approaching Traditional Giants
ZeroRun delivered 93,376 units in June, a year-on-year increase of 95%, with cumulative sales for the first half of the year exceeding 350,000 units. This figure has raised the monthly sales record for new players from around 80,000 to over 90,000 units, which means selling more than 3,000 units per day. Previously, it was believed that new players could only reach a maximum of around 80,000 units in sales; now ZeroRun has shattered this perception.
Why is this breakthrough significant? The larger the sales volume, the stronger the ability to spread costs (such as fixed expenses for research and development, production, and supply chain), resulting in greater profit margins. This scale is already close to that of some traditional joint-venture brands (for example, certain joint-venture SUVs also sell around 100,000 units per month). This indicates that the competition between new players and traditional giants is no longer a minor skirmish; from this year on, new players may transform from followers to challengers.
2. NIO and Xpeng Reach 40,000 Units: The Second Tier Finally Breaks Through the "30,000 Barrier"
In May, nine new entrants were stuck below the 30,000 unit mark; however, in June, NIO (40,597 units) and Xpeng (40,126 units) both surpassed this threshold, filling the gap in the 40,000 unit segment. This shows that the second tier is no longer stagnant and is moving towards higher sales volumes.
NIO's growth is driven by its multi-brand strategy: The ES9 was delivered within 30 days of its launch, and the third-generation ES8 sold 120,000 units, solidifying its position in the premium market. Xpeng, on the other hand, has seen success with the GX model, delivering 6,739 units in a single month and marking the production of its 10,000th unit. These achievements indicate that their product portfolios and market strategies are effective, as they no longer rely on a single model.
3. Stagnation in the 30,000 Unit Range: Li Auto and WM Motor See Declines
Within the 30,000 unit range, brands like Jikr (35,000 units), Deep Blue (33,000 units), and Haobo (33,000 units) saw slight increases, while Li Auto (30,900 units), WM Motor (30,200 units), and Yipai (23,000 units) experienced declines month-on-month. Li Auto has even seen three consecutive months of decline, and WM Motor also saw a 12% drop.
The debate over technical approaches is particularly intense: Li Auto focuses on extended-range vehicles (which can be refueled or charged), while NIO promotes pure electric vehicles. In June, executives from both companies engaged in public arguments, with Li Auto claiming that extended-range vehicles are more suitable for family users and NIO arguing that pure electric vehicles represent the future trend. The upcoming launch of the Li Auto L8 (an extended-range five-seater) and the NIO ES8 (a pure electric five-seater) will directly compete with each other, and this "battle of approaches" will significantly influence consumer choices and determine their market shares.
4. Industry Enters a Phase of Elimination: Scale Determines Survival; Only Seven Brands Will Be Profitable
The current issue in the automotive market is severe homogenization of products. However, top brands are selling more and smaller brands are selling less. For example, Lantu has only sold 14,000 units, while SAIC Zhiji and Avita have not even dared to announce their sales figures.
Why is scale so crucial? Fluctuating raw material prices mean that lower sales volumes result in higher costs per vehicle, making it easier to incur losses. Consulting firm IRI柏咨询 predicts that among China's 30 new energy vehicle companies, only seven will be profitable by 2030; the rest will either go out of business or be acquired by larger companies. This indicates that the era of diverse competition is over, and now it's a time for the strong to thrive and the weak to be eliminated.
Conclusion
The changes in sales among new players in June signal that the industry competition has entered a more intense phase: leading brands are breaking through with scale and product portfolios, middle-tier companies are competing on technical approaches and product iterations, while those at the bottom face the risk of being eliminated. When choosing a car, consumers should not only consider specifications but also the sales volume of the brand, as only the surviving brands will offer better after-sales services and vehicle resale values.