Chinese Auto Market in 2025 expands swiftly. YTD sales up to July grew 9%, with Geely as the standout performer, rising 90.6%. BYD, however retained leadership while also claiming EV top spot.
Economic Environment
China’s economic growth is projected to slow to 4.7% in 2025 and 4.3% in 2026, reflecting persistent weakness in real estate, high precautionary savings, and rising trade barriers. While consumption is supported by expanded social transfers and a government-backed trade-in programme (now including smartphones), overall demand remains dampened. Business investment benefits from policy incentives, but real estate investment continues to contract due to oversupply. Exports face headwinds from newly imposed U.S. tariffs, while imports decline as domestic production substitutes for foreign goods. Inflation remains subdued, with producer prices continuing to fall.
Fiscal policy has become more supportive with an expanded deficit, increased social spending, and bank recapitalisations to spur lending. Monetary policy remains accommodative, with rate cuts and reserve requirement reductions in place. Risks to growth include worsening global demand, further trade restrictions, and fragility in the property sector and local government finances. Structural reforms in wage-setting, healthcare, childcare, and social security aim to reduce precautionary savings and support long-term consumption. Despite demographic headwinds, growth could be maintained with continued liberalisation, improved spending efficiency, and greater competition in services.
Automotive Industry Trend and Outlook
China’s car market continues to expand in 2025, after surging between Q1 and Q2, and stabilizing towards the end of H1. Up to July, it totaled 12,99 million sales and gained 9% in year-on-year volume.
Brand-wise, BYD ranked 1st with a 12.8% share (+3.6%) while Geely -up 2 spots- followed in 2nd with a 9% share (+90.6%).
Volkswagen dropped 1 spot to 3rd place (+0.5%) followed by Toyota -down 1 spot- in 4th (+6%), Changan -up 1 spot- in 5th (+7.1%) and Chery -up 6 spots- in 6th (+33.3%).
Wuling -up 3 spots- ranked 7th (+14.8%), followed by Honda -down 3 spots- in 8th (-28%), BMW -down 2 spots- in 9th (-15.9%) and Audi -down 1 spot- in 10th (-11.3%).
To see the best-selling ranking in China, you can refer to the dedicated article. The new leader was the BYD SONG -up 1 spot- with a 2.3% growth, followed by the Geely Xingyuan which climbed 697 spots and ranked 2nd with outstanding growth.
EV Market Trend and Outlook
China’s EV market continues to expand in 2025. Several brands were able to achieve global rankings through domestic sales alone thanks to strong internal demand for EVs. YTD sales up to July grew 29.1%, reaching a 44% share of total vehicle sales.
BYD held the top spot with a market share of about 28.8%, growing 2.7%. Geely surged up 4 spots to claim 2nd place as the Xingyuan rose several spots into models rankings. Wuling secured 3rd spot, up 33% while Tesla fell 2 spots, losing 6.5% and being outpaced by domestic carmakers.
Medium-Term Market Trend
China’s car market, the world’s largest, accounts for nearly 30% of global sales and over 75% of global electric vehicle sales. The market’s booming phase culminated in 2017, reaching an all-time high of 25.54 million units, a nearly 30% increase over the 2014-2017 period, driven by rapid economic growth, urbanization, and increased consumer purchasing power.
In the subsequent three years, the market declined, dropping almost 17% by 2020, stabilizing around 21 million units due to economic headwinds, trade tensions, and market saturation.
Starting from 2021, the market began its recovery, aided by government incentives and a focus on new energy vehicles. Over the following four years, the market grew 6%, reaching 23.288 million units in 2024.
During the 2014-2024 decade, China’s EV market experienced significant growth. Sales reported steady increases, accelerating in 2021 (+149%) and 2022 (+81.6%), continuing the momentum to reach 9.404 million units in 2024, with a 40% market share. This growth can be attributed to strong government support, technological advancements, and increased consumer acceptance.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.
