# NEV Penetration

China’s EV Market Resets: Xiaomi and Leapmotor Lead a Post-Festival Recovery as NEV Penetration Crosses 50%

China's electric vehicle sector saw a massive rebound in March 2026, with NEV penetration returning to over 50%. The market is currently dominated by Leapmotor, Li Auto, and newcomer Xiaomi, whose rapid scaling is putting unprecedented pressure on traditional internal combustion engine manufacturers.