Introduction
China’s automotive industry closed 2025 with record-breaking production and sales, reinforcing its position as the world’s largest auto market. According to data released by the China Association of Automobile Manufacturers (CAAM) on January 14, total vehicle sales exceeded 34 million units, while new energy vehicles (NEVs) continued their rapid expansion.
This article breaks down China auto sales in 2025, analyzes key segments including passenger vehicles, NEVs, and commercial vehicles, and reviews the official 2026 market forecast.
1. China Auto Industry Overview (2025)
In December 2025, China produced 3.296 million vehicles and sold 3.272 million units, reflecting a typical year-end slowdown.
However, full-year performance was strong:
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Total production: 34.53 million units (+10.4% YoY)
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Total sales: 34.40 million units (+9.4% YoY)
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Market scale above 30 million units for 3 consecutive years
The top 10 auto groups accounted for 83.9% of total sales, highlighting continued industry concentration.
2. Passenger Vehicle Market Performance
Passenger vehicles remained the backbone of China’s auto market.
2025 Passenger Vehicle Sales
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Sales: 30.10 million units (+9.2% YoY)
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First time exceeding 30 million units
All four major passenger vehicle categories — sedans, SUVs, MPVs, and cross-type vehicles — recorded growth in 2025.
Rising Dominance of Chinese Brands
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Chinese brand passenger vehicle sales: 20.94 million units
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Market share: 69.5% (+4.3 pp YoY)
Chinese brands showed particularly strong performance in:
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SUVs: 73.4% market share
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MPVs: 68.7% market share
3. New Energy Vehicle (NEV) Market
Electrification remains the strongest growth engine in China’s auto industry.
NEV Market Highlights (2025):
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Sales: 16.49 million units (+28.2% YoY)
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Share of total new vehicle sales: 47.9%
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Nearly 1 in 2 new vehicles sold was a NEV
Battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and fuel-cell vehicles all recorded growth, with NEV sales highly concentrated among leading OEM groups.
4. Commercial Vehicle Market Recovery
China’s commercial vehicle market rebounded strongly in 2025:
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Sales: 4.296 million units (+10.9% YoY)
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Market returned to above 4 million units
Both trucks and buses achieved double-digit growth, driven by infrastructure investment, logistics demand, and replacement cycles.
5. China Auto Market Forecast 2026
CAAM projects moderate but stable growth in 2026:
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Total vehicle sales: 34.75 million units (+1%)
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Passenger vehicles: 30.25 million units (+0.5%)
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Commercial vehicles: 4.50 million units (+4.7%)
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NEVs: 19 million units (+15.2%)
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Exports: 7.4 million units (+4.3%)
While overall volume growth slows, NEVs and exports will remain key growth drivers.
Conclusion: What This Means for Global Players
China’s auto market is entering a new phase:
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Slower headline growth
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Faster structural transformation
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Stronger local brands
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Continued leadership in electrification
For automakers, suppliers, and investors, success in China increasingly depends on segment focus, technology positioning, and localization strategy — not just scale.