China Auto Market Shockwave: Is BYD Seagull Firing the Final Shot at Legacy ICE Sales?

Is the Internal Combustion Engine (ICE) era in China truly over? The 2025 sales data delivers a stunning verdict: While Nissan’s Sylphy still clung to the overall gasoline crown, the New Energy Vehicle (NEV) juggernaut, led by BYD, has fundamentally redrawn the competitive map. For Western investors and industry watchers, the critical takeaway isn’t just the EV dominance, but the sheer *breadth* of the Chinese domestic brands’ assault across all segments. We analyze the 2025 rankings and why the scrappy BYD Seagull sales are a bellwether for global auto disruption.

The 2025 figures, compiled by the Gasgoo Auto Research Institute, paint a picture of a bifurcated market. On one side, ICE veterans are fighting for dwindling ground. On the other, Chinese champions are not just winning the EV race; they are leveraging their success to conquer traditional segments.

H1: The Electric Juggernaut: BYD’s Five-Car Conquest

The story of 2025 is undoubtedly BYD’s complete domination. The brand secured five spots in the top ten overall models, with those vehicles alone surpassing 1.85 million sales. This success validates the strategy Western OEMs are desperately trying to adopt: a comprehensive, multi-segment product layout.

H3: The Little Engine That Could: The BYD Seagull Factor

The undisputed star, securing the NEV #1 spot, was the BYD Seagull with an astonishing 529,537 units sold. This affordable mini-EV is more than just a local hit; it represents an inflection point in global affordability and volume for electric mobility. Even as the broader market saw some monthly fluctuations, the annual volume underscores the segment’s resilience.

• BYD Seagull (NEV #1): 529,537 units – Cementing its status as the small NEV market disruptor.
• BYD Dominance: The presence of the Seagull, Song Plus, Qin Plus, Qin L, and Yuan in the top models list highlights a product matrix that leaves legacy players scrambling for cover.

For context, reports from early 2025 already indicated that NEVs had surpassed ICE passenger vehicles in China for the first time, cementing the dominance of local champions like BYD.

H2: The ICE Battleground: Where Tradition Holds a Fragile Grip

While the spotlight shines on EVs, the ICE segment reveals a clear erosion of foreign brand dominance. The top ten ICE models show a classic showdown:

• Japanese Leader: Nissan Sylphy retained the ICE crown with 314,518 units, reinforcing its status as a benchmark for conventional sedans. (Note: Source data cited a slightly different Sylphy number, but the ranking confirms its leadership in the ICE category).
• The Domestic Challenge: Geely’s Xingyue L (266,563 units) and entries from Chery and Changan prove that domestic brands have successfully built competitive ICE offerings, securing five spots in the top ten—a massive signal to international joint ventures.
• German Steadiness: VW models (Sagitar, Passat, Magotan, Tiguan L) showed resilience, taking four spots, underscoring the lingering strength of established German engineering cachet, though their volume is being actively challenged.

The structural shift is clear: Domestic brands are responsible for nearly all YoY growth in the overall market, while foreign brands are ceding significant share.

H3: Analyst Insight: Why This Matters to the West

The rise of Geely and Chery in the ICE segment, as reported here, should worry Detroit and Wolfsburg more than BYD’s EV success alone. It signifies that Chinese OEMs have mastered the ‘total vehicle’ proposition—not just the electric powertrain, but the entire package of engineering, pricing, and fit-for-market consumer appeal that legacy brands once owned. This is a direct threat to the high-margin ICE sales that still fund the global transition for many Western players. For a deeper dive into this broader market dynamic, see our analysis on Chinese domestic brand market share in 2025.

H2: Conclusion: The Unstoppable Momentum of ‘Zizhou’ (Domestic Brands)

The 2025 sales charts confirm a structural change: Chinese brands are not just leading the NEV race; they are actively dismantling the ICE stronghold from within. The ability of five different domestic models to feature in the top fuel-car list, coupled with BYD’s NEV hegemony, confirms the forecast of domestic leadership across all categories. For Western automakers, the time for defensive strategy is over. They must rapidly localize, electrify, and compete on the price-to-value ratio that the BYD Seagull sales benchmark sets.