Chinese electric vehicle makers including Nio and Li Auto have followed market leaders Tesla and BYD in extending buying incentives to the start of 2025, as a price war in the world's largest auto market continues for a third year.

XPeng (NYSE:XPEV), and NIO (NYSE:NIO) all reported record deliveries tallies for December, while Leapmotor, ZEEKR Intelligent (ZK), and Xiaomi (OTCPK:XIACF) also recorded new monthly highs during the month at a lower scale.

China hopes it's found its leverage in the tech war with Washington. The country holds a dominant position in the processing of critical minerals like gallium and lithium. Chinese companies like battery giant CATL have also emerged as key suppliers to automakers around the world.