In a whirlwind week for China's EV industry, BYD teamed up with Mobil to launch specialized engine oil for its PHEV lineup, addressing the unique demands of hybrid engines. Meanwhile, 2025 sedan sales are projected to exceed 11 million units with EVs dominating the top spots, and Beijing issued China's first L3 autonomous driving license plates to BAIC's Arcfox Alpha S. These developments underscore China's rapid shift toward advanced hybrids, affordable EVs, and real-world autonomous tech, signaling a maturing market poised for global disruption.
BYD and Mobil's Game-Changing PHEV Engine Oil Partnership
BYD, the undisputed PHEV market leader in China, announced a collaboration with Mobil on December 23 to introduce the "BYD Mobil Hybrid Special" engine oil series. Tailored for BYD's DM-i plug-in hybrid platform, this oil tackles the complexities of PHEV engines, which feature frequent starts/stops, short cold runs, and intermittent high loads—far more demanding than traditional ICE vehicles.
Despite phasing out pure ICE cars in 2022, BYD's PHEVs still require premium lubrication. Key highlights include:
- 0W-20 flagship variant: Anti-wear performance exceeds industry standards by 50%, with emulsification stability 2.5x higher to combat moisture from short trips.
- Focus on wear resistance, cleanliness, and stability for dynamic PHEV conditions.
- Aims for efficient, economical, and reliable hybrid driving.
This move reinforces BYD's commitment to optimizing its massive PHEV ecosystem amid rising competition.
2025 China Sedan Sales: EVs Claim 61% of Top 20 Dominance
China's sedan market is exploding, with 2025 retail sales forecasted at 11.04 million units—a 5.3% YoY increase from 2024. Drawing from CPCA data (Jan-Nov: 9.83 million sedans, up 29% YoY), December estimates add ~1.21 million units. EVs stole the show, grabbing 11 of the Top 20 spots with 3.14 million combined sales (61% share, +6pp YoY).
| Rank | Model | Est. 2025 Sales | YoY Change | Type |
|---|---|---|---|---|
| 1 | Geely Xingyuan | 480,000 | +812% | Micro EV |
| 2 | Wuling Hongguang Mini EV | 470,000 | +80% | Micro EV |
| 3 | BYD Qin PLUS | ~350,000 (est.) | -21% | PHEV |
| 4 | Nissan Sylphy | 340,000 | -1% | ICE |
| 9 | Xiaomi SU7 | 262,000 | +88% | EV |
| 15 | XPeng MONA M03 | ~100,000 (est.) | +272% | EV |
Key Trends:
- Black horses like Geely Xingyuan (affordable city EV) and Xiaomi SU7 (performance-intelligent value) surged, while BYD's Qin PLUS and Seagull slipped but Qin L and Seal 06 rose 15%+.
- Joint-venture ICEs (e.g., Toyota Camry +33% to 210k with 41% thermal efficiency) held 7 spots but lost share (-7pp YoY).
- Autonomous brands like Hongqi H5 broke into Top 20 with 167k sales.
Beijing's L3 Autonomous Breakthrough with Arcfox Alpha S
On December 23, BAIC's Arcfox Alpha S (L3 version) snagged China's first L3 autonomous driving plates:京AA0001Z,京AA0733Z,京AA0880Z. Just 7 days after MIIT approval on Dec 15, these plates enable unrestricted highway use—the highest level yet.
- Unique edge: Only L3-approved model with LiDAR for superior perception redundancy.
- Passed rigorous self-tests, traffic compliance exams, and joint drills with police on highways like Jingtai and Daxing Airport.
- Pilot on select Beijing highways to gather real-world data for scaling.
This cements China's lead in deploying conditional automation (SAE L3).
Why This Matters: Global Implications for Chinese EVs
These stories highlight China's EV trifecta: hybrid optimization (BYD's oil ensures PHEV reliability, sustaining its 30%+ market share), affordable EV proliferation (micro-cars like Xingyuan prove low-cost tech wins in mass markets), and autonomous leadership (Arcfox's L3 plates outpace Western pilots). With sedan EVs outselling ICEs in key segments and policies like purchase tax cuts phasing out in 2026, exports will accelerate—BYD, Xiaomi, and XPeng are already pressuring Tesla and legacy brands abroad.
Looking Ahead: 2026 Market Shake-Up
Expect intensified competition from newcomers like Seal 05 DM-i, Lynk & Co Zilong S, and Zeekr models. PHEV tech refinements and L3 rollouts could boost urban adoption, while EV price wars (5-15万 band) erode ICE holdouts. Chinese EVs aren't just dominating domestically—they're redefining global mobility. Stay tuned for final 2025 sales data in January.
