On July 10th, the China Association of Automobile Manufacturers (CAAM) released key data showing that China’s automobile production and sales reached 15.621 million units and 15.653 million units respectively in the first half of 2025, with year-on-year growth of 12.5% and 11.4%. This robust performance not only marks a significant milestone as both figures surpassed the 15 million mark but also underscores the resilience and vitality of China’s auto industry amid evolving market dynamics.
June, in particular, emerged as a strong month to cap off the first half, with production and sales hitting 2.794 million units and 2.904 million units, up 11.4% and 13.8% year-on-year respectively. This monthly surge reflected both pent-up consumer demand and the industry’s ability to adapt to shifting trends, particularly the accelerating shift toward new energy.
Dominance of Leading Groups
The top 15 automotive groups in China accounted for a staggering 14.434 million units in sales during H1, representing a 9.8% year-on-year increase and capturing 92.2% of the total market share. Among them, BYD stood out prominently, securing the top spot with 2.146 million units sold, a 33.0% year-on-year jump, and a 13.7% market share. SAIC and Geely followed closely, with 1.997 million and 1.634 million units sold, growing 12.3% and 43.6% year-on-year respectively. In contrast, some traditional players like Dongfeng and GAC saw their sales decline, highlighting the intensifying competition and the need for agility in the sector.
Passenger Vehicles Drive Growth
Passenger vehicles emerged as a key growth driver, with production and sales reaching 13.522 million and 13.531 million units in H1, up 13.8% and 13% year-on-year—outpacing the overall auto market growth. June alone saw 2.441 million units produced and 2.536 million units sold, rising 12.1% and 14.5% year-on-year, indicating sustained consumer interest in personal mobility.
Notably, all four major categories of passenger vehicles posted growth, with cross-type passenger vehicles leading the charge in terms of 增速 (growth rate). This diversification underscores the industry’s ability to cater to varied consumer preferences, from compact cars to larger family vehicles.
Chinese Brands Shine Bright
Chinese brand passenger vehicles delivered an outstanding performance, selling 9.27 million units in H1, a 25% year-on-year increase, and capturing 68.5% of the passenger vehicle market—up 6.6 percentage points from the same period last year. June continued this momentum, with 1.707 million units sold, a 19.3% year-on-year rise.
Across segments, Chinese brands made significant inroads: their market share in sedans reached 62.6%, in SUVs 72.5%, and in MPVs 68% in H1, all showing year-on-year gains. Even in June, these figures remained strong at 61.9%, 70.9%, and 67.8% respectively, reflecting growing consumer trust in domestic design, technology, and value propositions.
Electric Vehicles: The Star Performer
Without a doubt, electric vehicles stole the spotlight in H1. Their production and sales soared to 6.968 million and 6.937 million units, up 41.4% and 40.3% year-on-year, accounting for 44.3% of total new car sales. This rapid growth underscores the success of China’s transition to green mobility and the increasing affordability and appeal of electric vehicles.
Market Concentration and Key Players
The top 15 electric vehicle groups dominated the market, selling 6.599 million units—up 43% year-on-year—and capturing 95.1% of total electric vehicle sales. BYD once again led the pack with 2.146 million units sold, holding a 30.9% market share. Geely and SAIC followed, with 866,000 and 608,000 units respectively, posting remarkable year-on-year growth of 105.2% and 37.9%. These figures highlight the intense competition among domestic players and their ability to innovate in battery technology, software integration, and design.
Diverse Power Types, Sustained Growth
Both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) maintained strong growth trajectories. BEV production and sales reached 4.488 million and 4.415 million units, up 50.1% and 46.2% year-on-year. PHEVs also performed admirably, with production and sales at 2.479 million and 2.521 million units, rising 28% and 31.1% respectively. This dual growth reflects consumer willingness to embrace electric mobility, whether through full battery power or the flexibility of hybrid systems.
Rising Penetration in Domestic Market
Electric vehicle penetration in China’s domestic market continued to climb, with 5.878 million units sold in H1—up 35.5% year-on-year—and accounting for 46.8% of total domestic auto sales. Electric passenger vehicles led this charge, with 5.524 million units sold, making up 50.4% of total domestic passenger vehicle sales. Electric commercial vehicles also made gains, with 354,000 units sold, accounting for 21.8% of domestic commercial vehicle sales. By June, electric vehicles’ share of domestic sales hit 48.6%, with electric passenger vehicles reaching 51.8%—a clear sign that electric vehicles are no longer a niche option but a mainstream choice for many consumers.
Export: A Global Success Story
Electric vehicle exports were nothing short of spectacular in H1, totaling 1.06 million units—up 75.2% year-on-year. June alone saw 205,000 units exported, a 140% year-on-year surge. BEVs contributed 670,000 units to exports, up 40.2%, while PHEVs stole the show with 390,000 units exported—an astonishing 210% year-on-year increase. This export boom reflects China’s growing competitiveness in the global electric vehicle market, driven by cost-effective production, advanced battery technology, and a diverse product lineup that caters to international tastes.
Outlook for H2
Looking ahead to the second half of the year, Chen Shihua, Deputy Secretary-General of CAAM, expressed optimism, citing the continued implementation of “two new” policies and the steady supply of new products from automakers as key drivers of further growth. With ongoing investments in charging infrastructure, advancements in battery technology, and supportive government policies, the momentum behind electric vehicles is expected to persist, solidifying China’s position as a global leader in green mobility.
As the industry moves forward, the focus will likely remain on innovation, sustainability, and meeting evolving consumer demands. With electric vehicles at the forefront, China’s auto sector is poised to not only maintain its growth trajectory but also set new standards for the global automotive industry in the transition to a low-carbon future. The first half of 2025 has laid a strong foundation, and all eyes are now on how the industry will build on this success in the months to come, with electric vehicles continuing to be the cornerstone of this journey.
The data released by CAAM paints a clear picture: China’s auto industry is in a period of dynamic transformation, with electric vehicles leading the way. From production and sales to exports and technological innovation, the sector is demonstrating remarkable resilience and adaptability. As domestic brands strengthen their market position and electric vehicles gain greater global acceptance, China’s role as a key player in the global automotive landscape is set to grow even more prominent. The coming months will undoubtedly bring new developments, but one thing is certain: electric vehicles will remain at the heart of China’s automotive success story.
In summary, the first half of 2025 has been a landmark period for China’s auto industry. With production and sales exceeding 15 million units, and electric vehicles driving much of this growth, the sector has shown that it can thrive in a rapidly changing environment. The impressive performance of Chinese brands, the rising penetration of electric vehicles in both domestic and international markets, and the continued innovation in vehicle technology all point to a bright future. As the industry looks to the second half of the year, the momentum behind electric vehicles is expected to accelerate, further cementing China’s status as a global hub for automotive innovation and green mobility.
This growth is not just about numbers; it represents a shift in consumer behavior, a commitment to sustainability, and the culmination of years of investment in research and development. Electric vehicles are no longer a distant dream but a tangible reality, transforming the way we commute, the way we produce vehicles, and the way we think about transportation’s impact on the environment. As China continues to lead in this transition, the world will be watching, and the lessons learned here will undoubtedly shape the future of the global automotive industry for years to come.
With each passing month, electric vehicles are becoming more accessible, more reliable, and more integrated into daily life. From urban commuters to long-distance travelers, more and more people are choosing electric vehicles, drawn by their lower operating costs, reduced environmental impact, and advancing technology. This trend is set to continue, driven by ongoing improvements in battery range, charging speed, and the expansion of charging networks.
In conclusion, the first half of 2025 has been a testament to the strength and innovation of China’s auto industry, with electric vehicles emerging as the clear standout. As we move into the second half of the year, the industry is well-positioned to build on this success, driven by strong policy support, continuous product innovation, and growing consumer demand. The future of mobility is electric, and China is leading the charge.