China Passenger Car Association (CPCA) Secretary-General Cui Dongshu noted in his "Analysis of December 2025 Automotive Segment Market Trends and Manufacturer Competition" that the macroeconomic environment maintained robust growth in 2025. Driven by national policies promoting consumption, the automotive market sustained strong growth momentum, with the overall national automotive market exhibiting a relatively strong trajectory. The truck and bus markets showed significant signs of recovery. Due to exceptionally strong policy support last year and a noticeable policy contraction this year, retail sales in December 2024 were substantially higher than wholesale figures, leading to negative year-on-year growth in passenger vehicle retail sales for December this year. However, thanks to contributions from exports and inventory increases, manufacturers' sales growth in December remained relatively favorable. New energy vehicle (NEV) performance was strong in December, the automotive export market continued to strengthen, manufacturer inventory changes were considerable, and industry pressures remained significant. In 2025, the commercial vehicle market displayed characteristics of structural growth propelled by equipment renewal subsidies, with high subsidies accelerating the electrification of logistics and transport vehicles, resulting in high commercial vehicle market vitality.
In recent years, a clear divergence has emerged between passenger and commercial vehicle segments. As the real estate sector continued to decline, commercial vehicles weakened while passenger vehicle consumption improved. Propelled by policy factors in 2025, passenger vehicle growth was relatively good at 9%. Commercial vehicles, driven by electrification, saw significantly stronger NEV commercial vehicle trends compared to the previous year, with the bus market—including micro-vans—achieving robust growth. The vehicle replacement policy provided a good boost to passenger vehicles, particularly effective during its initial implementation phase. Recently, most subsidies have been suspended, and positive progress has been made in comprehensive industry governance to curb "internal competition," leading to an overall slowdown in the automotive market's growth trajectory.
From January to December 2025, cumulative total vehicle sales reached 34.4 million units, representing a cumulative growth rate of 9%. Total vehicle sales for December alone were 3.23 million units, a decrease of 8% compared to the same period last year. Subsidy policies drove high retail growth in the first half of the year, while wholesale growth was slightly slower. Retail sales growth weakened from July to December, although manufacturers' sales volumes remained relatively strong.
The performance divergence among major automotive groups was intense. Compared to the 2021 chart mentioned above, some automakers showed strong performance in 2022, resulting in severe disparities in industry growth rates. The pandemic in early 2022 put significant pressure on traditional automakers, especially with the叠加 impact of the NEV冲击 and pandemic effects. Large state-owned groups exhibited divergent performances, with GAC and Chery performing excellently; Chery's commercial vehicle and passenger vehicle divisions both performed very well. Automakers in the north, such as FAW, Great Wall Motors, and BAIC, all faced performance pressures. Early 2023 saw NEVs driving further divergence in market trends. The three major central state-owned enterprises showed overall differentiation, with some state-owned enterprises falling behind. NEV companies like BYD performed very well; Chery and Tesla showed relatively strong performance this year. Second-tier automakers experienced performance splits, and due to the transition between old and new drivers of growth coupled with sustained losses in the NEV sector, small and medium-sized independent brands faced severe differentiation and downturn.
The lineup and competitive landscape of automotive groups underwent comprehensive changes in 2024. BYD reduced prices on new models to boost volume, and due to strong passenger vehicle sales demand and contributions from overseas markets, Chery, Geely, and Dongfeng performed very well, while SAIC remained in a phase of sharp decline. Growth rates for NEV leaders BYD and Tesla diverged. The manufacturer landscape in the automotive market changed dramatically, with the industry showing intense growth rate disparities. Starting in 2025, private enterprises began replacing state-owned enterprises as the industry's main driving force, with Geely, BYD, Chery, and Great Wall Motors maintaining high growth levels—a trend that currently shows signs of sustainability. SAIC and Dongfeng, among others, performed strongly in December this year, showing improved growth rates. The automotive manufacturer landscape became relatively stable in 2025, with the status of independent brands significantly elevated. Manufacturer sales overall weakened month-on-month in December, building strength for a strong start in the new year. Some manufacturers, including SAIC and BYD, showed relatively stable trends compared to November, while Geely, Dongfeng, and Changan saw year-on-year strengthening. However, some manufacturers, like GAC, implemented significant year-on-year sales adjustments in December.
From January to December 2025, cumulative sales of narrow passenger vehicles (excluding microvans) totaled 29.56 million units, with a cumulative growth rate of 9%. Narrow passenger vehicle sales in December alone were 2.79 million units, a decrease of 9% year-on-year. In recent years, technological innovation and increasing competitiveness of new models in the NEV sector have progressed, while new fuel vehicle model launches have lacked strength. NEVs experienced rapid growth after the Spring Festival in 2025. The market maintained strong development at 14% growth from May to September. Despite a higher base in December, passenger vehicle growth remained relatively strong. Independent passenger vehicle manufacturers comprehensively led the market in 2025. Major manufacturers were generally weaker in December, with independents performing exceptionally strongly, while joint venture automakers showed weaker trends. BYD led the market, Geely Auto secured second place, and Chery maintained third position in December, with the top three players gradually converging in scale. Joint ventures like FAW-Volkswagen and SAIC Volkswagen performed relatively steadily. The main阵营 of passenger vehicle manufacturers rapidly differentiated, with NEV-focused manufacturers performing strongly, and the performance divergence among independents being particularly noticeable. Passenger vehicle retail sales showed significant divergence in December, with some major players like Geely performing steadily, but most experiencing substantial declines.
In December 2025, NEV passenger vehicle retail sales totaled 1.34 million units, a year-on-year increase of 3%. NEV passenger vehicle sales in 2024 reached 10.9 million units, showing a favorable growth trend of 41%. From January to December 2025, cumulative NEV passenger vehicle retail sales were 12.81 million units, a year-on-year increase of 18%. Scrappage renewal subsidies, manufacturer price reductions, and new models contributed to good growth in the first half of 2025, while exports drove growth in the second half. The competitive landscape among NEV manufacturers was relatively stable in 2025, with leading manufacturers growing rapidly and second-tier manufacturers gradually accelerating their growth. Tesla, Seres, and Xiaomi showed strong trends in December, while Geely, BYD, and others had slower December performance. The national automotive market experienced intense differentiation, with significant disparities in growth rates between provinces and among manufacturers.
Sales of traditional internal combustion engine narrow passenger vehicles were 16.66 million units in 2023, essentially flat compared to 2022. Traditional narrow passenger vehicle sales were 14.95 million units in 2024, a year-on-year decrease of 10%. From January to December 2025, sales were 10.94 million units, a decrease of 9% year-on-year, with a sharp 31% decline in December alone, indicating enormous pressure from the year-end slump. Conventional passenger vehicles experienced continuous positive growth from June to September, but the decline accelerated after October. The replacement policy provided a good boost for fuel vehicles, but the price impact from NEVs will continue to be felt. There is hope that traditional vehicles can also stabilize and return to growth. The market dynamic, previously dominated by joint venture manufacturers for conventional powertrain passenger vehicles, is gradually shifting towards stronger independent brands. The markets for Chery, Geely, Great Wall, and the top three joint ventures remain relatively strong. FAW-Volkswagen is the absolute leader among joint ventures, but independent brands' advantages in fuel vehicles relative to joint ventures are not obvious, as joint venture manufacturers still possess superior technical底蕴 in fuel vehicle technology.
Cumulative manufacturer sales for buses throughout 2023 were 750,000 units, with a cumulative growth rate of 3%. Cumulative bus sales in 2024 were 800,000 units, an increase of 6%. From January to December 2025, cumulative bus sales were 920,000 units, with a cumulative growth rate of 15%. Bus sales in December were 85,000 units, a year-on-year decrease of 12%, with the pull effect from NEV logistics vehicles being明显. Bus market trends were relatively strong in 2025, with leading manufacturers冲刺 sales. Month-on-month growth was strong in August and September. In December, Changan saw a 33% month-on-month increase, while Wuling saw a 35% month-on-month decrease, and SAIC Maxus experienced a 31% month-on-month decrease, largely reflecting demand fluctuations in the logistics-oriented light bus and micro-van market. Wuling, Changan, Maxus, and Xinyuan showed favorable commercial vehicle trends in 2025. Due to the recovery and growth of NEV micro-vans, the vehicle purchase tax preferential policies continued to have a strong stimulating effect.
Cumulative truck sales for the full year 2023 were 3.54 million units, with a cumulative growth rate of 19%. Cumulative truck sales in 2024 were 3.35 million units, a cumulative decrease of 3%. From January to December 2025, cumulative truck sales were 3.72 million units, with a cumulative growth rate of 11%. Truck sales in December were 360,000 units, a year-on-year increase of 17%. The divergence among major truck manufacturers was quite apparent in 2025, with leading manufacturers performing strongly. Wuling and Changan, among others, saw explosive growth compared to December of the previous year. Shaanxi Automobile, JAC, and Jiangling's light truck segments performed well year-on-year in December. Heavy truck sales surged in 2025, with pure electric heavy trucks performing exceptionally strongly. FAW, Shaanxi Automobile, and China National Heavy Duty Truck Group showed strong growth, and the industry structure remained relatively stable.
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