Chinese Auto Market in 2025 keeps growing but it’s slowing down. Full-year sales gained 3%, with leader BYD dropping by 16.1% while top contender Geely surged 66.1%. The head-to-head was evident in the EV sector as well, which expanded by 9.8% to a 44% share.
Economic Environment
2025 forecasts anticipated that China would struggle to balance slowing domestic demand with external uncertainty, and the final data largely confirmed that view. China’s economy grew 5.0 percent in 2025, meeting the official target and closing the 14th Five-Year Plan with overall macro stability, though growth momentum eased steadily through the year. GDP expansion slowed from 5.4 percent in Q1 to 4.5 percent in Q4 as stimulus effects faded and household confidence remained cautious. Structurally, growth was driven mainly by services and advanced manufacturing, while traditional engines such as real estate and broad investment continued to weigh on performance.
High-tech and equipment manufacturing expanded by over 9 percent, underscoring policy-led industrial upgrading, while modern services such as IT and business services posted double-digit gains. Consumption recovered only modestly, with retail sales rising 3.7 percent, supported by e-commerce and services but constrained by weak property markets and income uncertainty. Fixed asset investment fell 3.8 percent, dragged down by a sharp contraction in real estate, even as manufacturing and high-tech investment remained resilient. External trade acted as a key stabilizer, with exports growing over 6 percent and private firms increasing their share of trade. Inflation stayed near zero and employment remained broadly stable, leaving policymakers room for targeted support.
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. However, while still positive, the YTD tally has been steadily slowing down since July. Overall, car sales totaled 24,15 million units in 2025, growing by 3% compared to the prior year.
Brand-wise, BYD ranked 1st with a 12.2% share (-16.1%) while Geely -up 2 spots- followed in 2nd with a 8.6% share (+66.1%).
Volkswagen dropped 1 spot to 3rd place (-9.2%) followed by Toyota -down 1 spot- in 4th (-1.4%), Changan -up 1 spot- in 5th (-3%) and Wuling -up 1 spot- in 6th (+2.1%).
Chery -up 1 spot- ranked 7th (+9.2%), followed by Honda -down 3 spots- in 8th (-27.2%), Tesla -up 2 spots- in 9th (-4.9%) and Audi -up 2 spots- in 10th (-5.6%).
To see the best-selling ranking in China, you can refer to the dedicated article. The Geely Xingyuan emerged as new leader while rising 756 spots. The Wuling Hongguang Mini EV followed in 2nd, up 66.8% and 7 spots. The Tesla Model Y closed the podium, down 11.4%.
EV Market Trend and Outlook
China’s EV market mantains strong growth in 2025. Several brands were able to achieve global rankings through domestic sales alone thanks to strong internal demand for EVs. Full-year sales grew by 9.8%, reaching a 44% share of total vehicle sales.
BYD held the top spot with a market share of about 26.2%, despite losing 21.3%. Geely climbed 3 spots into 2nd place while growing 142.2% as the Xingyuan rose several spots into models rankings. Wuling secured 3rd spot, up 8.5% while Tesla fell 2 spots, losing 4.9% 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.
