At least six Chinese private automakers, including BYD, Geely, and Leapmotor, have set new records for electric vehicle deliveries in November, as Beijing’s stimulus packages have drawn millions of buyers to their showrooms, ahead of the Lunar New Year holiday season in January.

Meanwhile, premium EVs from state-owned manufacturers such as Changan and Dongfeng are also gaining momentum, posing a threat to existing leaders and putting pressure on smaller players with shallower pockets, as consolidation within the Chinese electric vehicle sector accelerates.

Why it matters: The figures come against a backdrop in which most major automakers in China have made aggressive moves with deep discounting and increased promotions to boost their year-end deliveries. This has raised concerns that demand could be heavily frontloaded during the last few months of this year and wane in 2025.

• In July, the Chinese central government increased its financial support for the automobile industry, offering subsidies of up to RMB 20,000 ($2,746) to drivers who scrap gas-powered vehicles for new and energy-efficient ones, doubling the sum it had offered three months previously. Beijing is expected to extend the measure for another year but reduce spending from this year.

Leaders: BYD, Geely, Changan, and Chery – some of the biggest automakers in China – announced on Dec. 1 that they delivered record numbers of EVs in November, their diverse EV lineups being well received by Chinese customers.

• BYD again achieved record sales of over 500,000 passenger vehicles in November after reaching the milestone for the first time in October, bringing the company’s total delivery count for the year to more than 3.7 million units, close to its annual sales goal of 4 million.
• Sales of both Geely’s affordable Galaxy series and premium EV brand Zeekr grew triple-digit year-on-year to 75,228 and 27,011 units last month, respectively, while Lynk & Co reported a 31% growth in November sales from a year earlier. 
• Avatr said all three of its models are available with both battery electric and extended-range hybrid (EREV) options, as Changan’s luxury brand reached the 10,000-unit mark for two consecutive months.
• Sales of Chery’s new energy vehicles (NEVs), including battery EVs and plug-in hybrids (PHEVs), surged 267.9% year-on-year to 77,830 units thanks to strong demand for its JETOUR off-roaders, among others.

Challengers: Dongfeng, SAIC, and BAIC also reported deliveries of more than 10,000 units for their respective premium EVs, highlighting a growing momentum in favor of Chinese state-owned automakers.

• The Voyah Dreamer notably surpassed BYD’s Denza D9 to become the top-selling multi-purpose vehicle in the EV segment, following a redesigned version that was launched by Dongfeng in September, according to figures compiled by China-based auto service platform Dongchedi.
• IM Motor said it is providing a zero-interest car financing package that will last up to five years for buyers of its LS6 and L6 crossovers in December, as the SAIC premium brand hopes to put its sales on a high growth trajectory heading into the final month of this year.
• Stellantis-backed Leapmotor and Volkswagen’s partner Xpeng Motors reported deliveries of more than 40,000 and 30,000 units of their competitive offerings, respectively, their best-ever month for EV shipments.
• The November deliveries for Li Auto and NIO slightly declined from a month earlier. Li Auto began offering three-year interest-free loans in late November, while NIO is looking to ramp up production of its Onvo EVs at its second factory in the eastern Chinese city of Hefei.

READ MORE: Chinese auto major SAIC, Changan launch new models, rivaling Tesla Model Y

Context: Tesla on Nov. 25 made an early start to its holiday promotions, offering Chinese consumers five-year 0% loans and an RMB 10,000 cut on its Model Y sports utility vehicles by the end of this year, with BYD, Li Auto, and others following suit, Bloomberg has reported.

• The market remains ultra-competitive, driving an increasing number of smaller players out of business. Hozon has become the latest to face financial troubles and mass lay-offs. Meanwhile, experts have projected a new round of price wars looming in the coming weeks because of the earlier-than-usual Chinese New Year holidays.