Growth and Trends in the Micro Electric Vehicle Market in China

Electric Vehicles · Overview || Subsidized Small Electric Vehicle Development and General Market Trends

Release Date: 2025-05-26 · China Automotive News

Author: Zhang Hong

Editor: Zhang Hong

This article discusses the current trends and future prospects of the electric vehicle market, particularly focusing on small electric vehicles (SEVs) in China.

According to data from the China Automotive Industry Association, in April of this year, the market for pure electric vehicles saw significant growth. Specifically, the A00 and A0 class electric vehicles demonstrated a notable increase. The A00 class pure electric vehicle sales reached 1.51 million units, marking a 94% rise compared to the previous year, while the A0 class pure electric vehicle sales amounted to 1.81 million units, representing a 25% market share.

In 2020, the introduction of the Wuling MINI EV marked a new era for the small electric vehicle market, acting as a catalyst for growth. By that year, A00 class pure electric vehicles had accumulated sales of approximately 2.627 million units, while the total pure electric vehicle market reached around 2.734 million units. By 2021, A00 class pure electric vehicle sales had skyrocketed to 9.9 million units, establishing it as the largest segment in the market. In 2022, sales of small pure electric vehicles surpassed 1.08 million units.

As the market continues to develop, the increasing prices of raw materials, the depletion of subsidies, and insufficient product offerings have led to challenges for the small electric vehicle market, which is expected to face intensified competition. By 2024, the small electric vehicle market is anticipated to continue its rapid growth.

This year, models such as the Xiaopeng P7 and the new QQ series have entered the market, further boosting the segment’s growth. The competition within this market is expected to intensify due to the increasing number of new products.

Market analysts point to two primary reasons for the significant growth of small electric vehicles: first, the rise in consumer preference for cost-effective and efficient electric vehicles; and second, the ongoing government policies that support the adoption of electric vehicles.

Data indicates that by 2023, the market for A00 class small electric vehicles in China has become well established, with electric vehicle sales exceeding 100 million units. It can be noted that small electric vehicles have increasingly been recognized as the mainstream choice for new energy vehicles.

Recently, the China Electric Vehicle 100 People’s Association and relevant industry bodies released a report titled New Energy Vehicles: New Concepts and New Trends, which outlines the expected market trends for 2024-2025. This report suggests that the market for new energy vehicles is likely to become the largest segment in the automotive industry.

Based on the data, it is predicted that by 2025, the share of A00 class vehicles will account for a significant portion of the market, with small electric vehicles representing a considerable share of sales.

Overall, despite the challenges of rising production costs and regulatory changes, the small electric vehicle segment is poised for growth, driven by consumer demand for sustainable and affordable transportation options.

In conclusion, the development of small electric vehicles is expected to continue, offering vast opportunities in the expanding market.