XPeng, NIO, Li Auto Hit 400K Sales in 2025, Profitability Gains Shield Them from Takeovers

In 2025, NIO, XPeng, and Li Auto delivered 326,000, 429,000, and 406,000 vehicles respectively—far below the over-one-million-unit scale achieved by traditional automakers like BYD and Geely, yet all reaching record highs or maintaining strong performance. More importantly, all three companies have begun generating self-sustaining cash flow: NIO reported a gross margin of 13.9% in Q3 and held RMB 36.7 billion in cash reserves; XPeng’s gross margin surpassed 20%, with nearly RMB 48.4 billion in cash on hand; and although Li Auto posted a short-term loss, its gross margin remained at 20.4% after excluding the impact of vehicle recalls. Industry analysts note that traditional automakers are more inclined to consolidate their internal EV brands (such as Geely merging Zeekr) rather than acquire independently capable players like NIO, XPeng, and Li Auto at high valuations. Bolstered by unique competitive advantages—including NIO’s battery-swapping network, full-stack in-house autonomous driving technology, robust user ecosystems, and accelerated global expansion—these three EV pioneers are transitioning from mere survival to high-quality competition and are well-positioned to thrive into their next five years.