China’s EV Shockwave: Leapmotor Defends Crown, Xiaomi Smashes 40k Barrier, and a Former Leader Tumbles – What it Means for Tesla & VW

Another Month, Another Bombshell: China’s September EV Sales Reveal a Brutal New World Order

Here in Shanghai, watching the monthly auto sales figures drop feels like tuning in for the most intense reality show on Earth. The numbers for September 2025 are in, and they paint a picture of a market that is not just growing, but violently reshaping itself. While headlines might focus on the “Golden September” sales boom, the real story is in the brutal churn just beneath the surface.

One brand cemented its dynasty, two tech-savvy challengers broke into a new elite tier, and a former champion stumbled badly. For Western automakers like Tesla and Volkswagen, these results aren’t just distant news; they are a preview of the battle-hardened competitors heading for their shores. Let’s break down the data.

The September 2025 Scorecard: The New Hierarchy Emerges

First, the raw numbers. The table below shows the delivery volumes for China’s key “new forces” EV brands, based on the latest September data.

Rank	Brand	September Sales	August Sales	MoM Growth	YoY Growth
1	Leapmotor	66,657	57,066	+16.8%	+97%
2	AITO	45,000+	41,029	–	–
3	Xpeng	41,581	37,709	+10.3%	+95%
4	Xiaomi	40,000+	36,396	–	–
5	NIO	34,749	31,305	+11.0%	+72%
6	Li Auto	33,951	28,529	+19.0%	-37%
7	Deepal	32,000+	24,057	–	–
8	Aion	29,113	27,044	+7.7%	-19%
9	Zeekr	18,257	17,626	+3.6%	-14%
10	Arcfox	16,074	10,500	+53.1%	+48%
11	Voyah	15,224	13,505	+12.7%	+52%
12	Avatr	12,000+	10,565	–	–
13	IM Motors	11,107	6,569	+69.1%	+146%

Note: Figures with a “+” are preliminary estimates.

Winner’s Circle: The Undisputed Champion and the ’40k Club’

Leapmotor (66,657 units): For the seventh consecutive month, Leapmotor is the undisputed king. Smashing the 60,000-unit ceiling for the first time is a massive statement. With a 97% YoY growth and having recently produced its one-millionth vehicle, Leapmotor has moved from being a dark horse to a dominant force. Their consistency is becoming a serious threat to everyone.

Xpeng (41,581) & Xiaomi (40,000+): The biggest story is the arrival of the ’40k Club’. Both Xpeng and Xiaomi have broken into this new elite tier.

• For Xpeng, this is a validation of its technology and global ambition, having just started localized production in Europe.
• For Xiaomi, it’s nothing short of staggering. A smartphone company achieving over 40,000 monthly car sales with a 195% YoY growth is a stark warning to legacy automakers—and perhaps a painful lesson for Apple’s stalled car project.

A Tale of Two Fortunes: NIO’s Revival vs. Li Auto’s Shocking Fall

Nowhere is the market’s volatility more apparent than in the diverging paths of NIO and Li Auto.

• NIO (34,749 units): After a tough period, NIO is back. Reclaiming a top-five spot by outselling Li Auto is a huge morale boost. Its multi-brand strategy (premium NIO, family-focused ONVO, and compact FIREFLY) appears to be paying off, proving there’s a path back from the brink.
• Li Auto (33,951 units): This is the stunner. While showing monthly growth, Li Auto was the only top-tier brand to suffer a year-over-year decline—and a catastrophic one at that, at -37%. Once the undisputed leader in the premium family segment, Li Auto’s fall from grace shows that in this market, no one is safe. All eyes are on its upcoming pure EV models to see if they can stop the bleeding.

The ‘Second Wave’ is Already Here

Don’t sleep on the brands further down the list. The growth rates there are explosive and signal the next wave of competitors. IM Motors saw a jaw-dropping 69% month-over-month surge, thanks to its new hit model, the LS6. Arcfox wasn’t far behind with 53% growth. This proves that a well-executed product launch can catapult a brand into relevance almost overnight.

Conclusion: What This Means for Tesla, VW, and the West

The September sales report is a clear signal: China’s domestic EV market is a brutal, high-speed crucible. It’s forging companies that are incredibly fast, resilient, and accustomed to fighting for every sale.

For global players, the takeaway is twofold. First, the technological and product-cycle gap is closing, if not already gone. Second, this domestic “training ground” is producing battle-hardened companies that are now expanding globally. Xpeng is already producing cars in Europe. Leapmotor is expanding its international footprint.

The question is no longer if these brands will be a global force, but how Western incumbents will respond when this level of competition—defined by rapid innovation and intense price pressure—arrives in their home markets. The game has changed.

Deeper Dive: For Further Study

For those who want to gain deeper insights into the topics discussed today, I have personally reviewed and recommend the following professional book.

[The New China Playbook: Beyond Socialism and Capitalism]

• Why I Recommend It: To understand how companies like Xiaomi can rise so quickly and why the competitive landscape is so intense, you need to understand the larger economic and political strategy of China. This book provides a brilliant framework for comprehending the unique system that is fueling this industrial transformation, giving context to the shocking numbers we see every month.
• 👉 https://amzn.to/47fD9Jw

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