China’s car sales grew 1.3% in the first two months of 2025, driven by expanded customer subsidies despite Chinese New Year disruptions. February’s passenger vehicle sales rose 26.1% YoY to 1.41 million units. In February, EV and plug-in hybrid sales rose 79.7%, accounting for 48.8% of total car sales. BYD (Build Your Dreams) intensified the EV price war by adding advanced driving-assistance features at no extra cost. Xiaomi sold 23,728 EVs in February, while Tesla’s sales dropped to 26,777 units, its lowest since November 2022.