Automobile companies that want to survive beyond 2025 should resolutely cut off their unpopular burdens.

It's time again at the beginning of the month to reveal the sales figures. The overall sales curves of star car companies like XPeng and NIO remain impressive.

In June, XPeng Motors sold 34,600 vehicles in a single month, a year-on-year increase of 224%; NIO Inc. sold 24,900 vehicles in a single month, a year-on-year increase of 17.5%; Avita sold 10,200 vehicles in a single month, a year-on-year increase of 117%.

Picture/ Delivery situation of some car companies in June  Source/ Internet, compiled by New Energy Outlook

As the saying goes, every family has its own hard-to-read scriptures. Beneath the glamour, they also have their own troubles.

Looking into the details behind the data, models like the XPeng P7 and NIO EC7 struggled to sell in double digits, while the monthly sales of models such as the NIO ES7, Volkswagen ID.7 VIZZION, IM L7, and GAC AION LX were stuck at an embarrassing single-digit level.

Therefore, while the leading models are making inroads in the market, these unpopular models have become the "drags" in the car companies' extensive product portfolios. They not only occupy a large amount of R & D and production resources but also hardly translate into actual profits.

This contradictory market situation has put car companies in a dilemma: Should they resolutely "swing the knife" to cut these niche or inappropriately positioned models in order to achieve profitability as soon as possible? Or should they choose to continue investing resources in an attempt to reverse the situation?

1. Do star car companies also have "unpopular cars"?

In today's new energy vehicle market, it's a flourishing scene. Many car companies such as XPeng, NIO, Avita, and GAC AION easily sell over 10,000 vehicles per month.

However, even though these star brands are shining brightly in the market, not all of their models are "hot sellers." Some models have been lingering at the bottom of the sales rankings for a long time, becoming the "drags" on the brand's development.

As the brand's first intelligent flagship coupe, the XPeng P7 had a period of positive development in the early days of its launch, thanks to its unique exterior design and advanced intelligent driving technology. At its peak in 2022, it sold 9,183 vehicles per month.

Picture/ XPeng P7  Source/ Internet, screenshot from New Energy Outlook

However, with the launch of more competitive rival models in terms of configuration and price, as well as the emergence of the P7+, the XPeng P7 gradually lost its edge, and its sales plummeted. In May, it only sold 82 vehicles.

Picture/ XPeng P7+  Source/ Internet, screenshot from New Energy Outlook

Similarly, the market performance of the NIO EC7 has also been disappointing. Although the NIO brand has a certain reputation and user base in the high - end new energy vehicle market, the EC7 has failed to attract enough consumers. In May this year, its monthly sales dropped to double digits, only 94 vehicles.

Some models seem to have faced the dilemma of "not adapting to the local environment" since their birth.

Many models such as the ID.6 CROZZ, Hongqi E - HS9, ARCFOX αS, Changan Qiyuan E07, Avita 11, IM LS7, Shanhai L8, Volvo EM90, Volvo EX30, Honda CR - V e:PHEV, BYD D1, BYD e3, BYD e6, Honda S7, Jetour X90 C - DM, and IQ Aoge have seen their sales hovering at a low level since their launch. In May, their sales were only in double digits.

Picture/ Partial data of the top 200 sedan sales rankings in May 2025  Source/ Internet, screenshot from New Energy Outlook

The situation of models such as the NIO ES7, Volkswagen ID.7 VIZZION, IM L7, GAC AION LX, e:NP1 JiPai 1, ARIYA, Venucia D60 EV, Hyper SSR, and RAV4 Prime is even worse. Their monthly sales are currently in single digits and are almost forgotten by the market.

Behind the dismal sales of these "drag" models, there are multiple deep - seated reasons.

Firstly, there are positioning mistakes. Some car companies failed to accurately grasp market trends and consumer needs during the model R & D process. They blindly followed the trend and launched some products that seemed popular but actually lacked differentiation.

Secondly, there are problems of vague and unfocused strategies. Although some brands have many models under their umbrella, they lack clear product line planning and differentiated competitive advantages, which confuses consumers when making choices.

At the same time, the large number of models with similar positioning under these car companies also leads to fierce internal competition, which ultimately affects sales. In the worst - case scenario, "one's own people eliminate each other." Take the NIO ES7 as an example. It is positioned as a mid - to large - sized pure - electric SUV with a price of over 400,000 yuan. However, it is actually caught between its sibling models, the ES6 and the ES8. This results in its potential customer group being divided into two categories: those who are willing to pay more for the ES8 or those who choose to save money and go for the ES6.

Picture/ NIO ES7  Source/ Internet, screenshot from New Energy Outlook

"The price difference between the ES7 and the ES8 is not significant. You might as well grit your teeth and go for the top - end ES8, which has more advantages in terms of configuration and space."

"The configuration update of the old - model P7 lags behind, and the new model is tens of thousands of yuan more expensive than the old one. It's better to directly buy a new - model rival vehicle." Many consumers admitted.

2. Who is paying for the "unpopular cars" of star models?

Although models with monthly sales in single or double digits are often labeled as "unpopular" in the consumer market, there are still some consumers willing to buy them. Behind their choices, there are diverse considerations of individuality, sentiment, and cost - effectiveness.

"When I drive the EC7 out, the rate of people turning their heads is much higher than when driving a Tesla or an ES6." The car - buying choice of Ms. Cheng, a Shanghai car owner, is quite representative.

Some time ago, when planning to buy a new electric vehicle, instead of following the trend to choose a hot - selling model, she set her sights on the niche NIO EC7. "I'm a person who pursues individuality and don't want my car to be frequently seen on the road. But I'm also worried about the after - sales service of niche brands. After all, the examples of Nezha and HiPhi going bankrupt are right in front of us. In this case, the unpopular models of popular car companies can just meet my needs."

Picture/ NIO EC7  Source/ Internet, screenshot from New Energy Outlook

Ms. Cheng revealed that her final choice of the unpopular model under the NIO brand was mainly because of NIO's battery - swapping service. "It only takes three minutes to swap a new battery, which is much faster than waiting for charging. It completely dispelled my anxiety about the long charging time."

There are many consumers with similar ideas to Ms. Cheng. More than 30% of dozens of consumers who bought unpopular models of popular car companies said that they both desire to express their individuality and need relatively stable after - sales service. And the unpopular models of popular brands have become the optimal solution to balance the two.

Brand sentiment is another key driving force.

Mr. Li, a car owner in Jinan, Shandong, has two Volkswagen cars parked at home. For him, a car is not only a means of transportation but also a companion for many years. "My first car was a Volkswagen Jetta. I drove it for more than a decade without any major problems. It's sturdy and durable. Over the years, I've watched Volkswagen update its models. Even though the sales of the ID.7 VIZZION are average, I still didn't hesitate to place an order to support it."

 Picture/ Volkswagen ID.7 VIZZION  Source/ Internet, screenshot from New Energy Outlook

In Mr. Li's view, the chassis tuning skills and delicate interior workmanship that Volkswagen models have accumulated over the years are the sentiment factors that he can't let go of.

Mr. Chen, an old Volvo car owner in Guangzhou, who also bought a Volvo EM90, said, "My father's first car was a Volvo. It carried my childhood memories. The simple Nordic interior style is deeply engraved in my memory, which made me have to buy it."

Picture/ Volvo EM90  Source/ Internet, screenshot from New Energy Outlook

Of course, not all choices are based on active value judgments. Some consumers are involuntarily involved due to "information gaps."

Many consumers said that during the car - buying process, they were deceived by the salesperson's "trap of words." They originally wanted to buy a hot - selling model for peace of mind in the future, but only found out after taking delivery of the car that the model they bought was a "big unpopular" in the brand.

"The salesperson strongly recommended a certain mid - sized SUV, saying it was a 'mid - level configuration model with the functions of a high - end configuration and the price of a low - end configuration.' After taking delivery of the car, I found that the car had low sales due to its awkward configuration, and the market discount was much larger than expected."

"I was impressed by the salesperson's words of 'time - limited discount' and impulsively placed an order for a niche model. Later, I found out that there were more mainstream choices at the same price."

3. Car companies need to "let go": If they don't cut, they'll be cut by the market!

However, the "preference" of a few people can't save the unsalable cars and will only drag down the car companies. The current new energy vehicle market has long passed the stage of wild growth, and the window period of dividends is constantly narrowing. Car companies can no longer afford high "trial - and - error costs."

Data from the Passenger Car Association shows that in the first quarter of 2025, the retail penetration rate of new energy vehicles in China was 47.3%, a decrease of more than four percentage points compared with the fourth quarter of last year. The fourth quarter of last year saw a 1.3% decrease compared with the third quarter of last year.

Picture/ Trend of new energy vehicle retail penetration rate  Source/ Internet, screenshot from New Energy Outlook

In such a market environment, the profit - making pressure on car companies is increasing day by day. Currently, among many new - force brands, only Li Auto and Seres have achieved annual profitability. The other brands have not only failed to turn losses into profits but are also facing huge pressure on their cash flow.

For example, NIO's net loss reached 22.6 billion yuan in 2024, and there was still no sign of improvement in the first quarter of 2025. The net loss increased by 30.2% year - on - year to 6.75 billion yuan. In terms of cash flow, its current assets in the first quarter were 49.79 billion yuan, a decrease of 9.29 billion yuan compared with the same period last year, and its total liabilities were 90.85 billion yuan, an increase of 11.68 billion yuan compared with the same period last year.