Beijing, July 11 (Reporter) – As the mid-year mark arrives, China’s auto industry has delivered a robust performance, with both production and sales surging past 15 million units in the first half of 2025, according to the latest data released by the China Association of Automobile Manufacturers (CAAM) at its monthly press conference. This remarkable growth underscores the resilience and vitality of the world’s largest auto market, driven by strong demand, policy support, and the relentless rise of electric vehicles.
The first six months of 2025 have been a period of significant momentum for China’s auto sector. CAAM’s figures reveal that automobile production reached 15.621 million units, while sales hit 15.653 million units, representing year-on-year increases of 12.5% and 11.4% respectively. These numbers not only reflect a solid recovery but also signal a positive trajectory for the industry as it continues to play a pivotal role in the country’s economic stability and growth.
A closer look at the data highlights the transformative impact of electric vehicles, which have emerged as the driving force behind the sector’s expansion. In H1, electric vehicle production soared to 6.968 million units, with sales reaching 6.937 million units. These figures translate to impressive year-on-year growth rates of 41.4% for production and 40.3% for sales, cementing electric vehicles’ position as a cornerstone of China’s auto market. Notably, electric vehicle sales now account for 44.3% of total new car sales, a testament to the rapid shift in consumer preferences and the industry’s successful transition towards electrification.
June, in particular, stood out as a strong month for the auto market, buoyed by ongoing policy initiatives such as the “old-for-new” replacement scheme. During the month, automobile production and sales reached 2.794 million units and 2.904 million units respectively, with month-on-month growth of 5.5% and 8.1%, and year-on-year increases of 11.4% and 13.8%. This momentum in June further solidified the positive trend observed throughout the first half, indicating that market demand remains robust and responsive to supportive policies.
The rise of electric vehicles is not confined to domestic sales; their global appeal is also growing exponentially. In terms of exports, China’s auto industry maintained its upward trajectory in H1, with total vehicle exports reaching 3.083 million units, a year-on-year increase of 10.4%. Within this, electric vehicle exports were a standout performer, surging by 75.2% to 1.06 million units. This dramatic growth in electric vehicle exports underscores China’s increasing competitiveness in the global automotive market, as its manufacturers continue to innovate and improve the quality and affordability of their electric vehicle offerings.
Domestically, Chinese-brand passenger cars are making significant strides, capturing a larger share of the market. In H1, passenger car production and sales reached 13.522 million units and 13.531 million units, up 13.8% and 13% year-on-year respectively. Chinese-brand passenger cars accounted for 68.5% of total passenger car sales, an increase of 6.6 percentage points from the same period last year. This growth is largely attributed to the strategic focus of domestic automakers on electric vehicle development, with many adopting a “multi-pronged” approach to new energy technologies. By expanding their electric vehicle lineups and pushing into high-end markets, Chinese brands are enhancing their market influence and challenging international competitors.
When examining the 细分 categories of passenger cars, distinct trends emerge in both traditional fuel vehicles and electric vehicles. Among traditional fuel passenger cars, sales of A-class (compact) and C-class (mid-to-large) models saw declines, with A-class models remaining the dominant segment. In contrast, all categories of electric passenger cars posted growth in H1. A-class (compact) and B-class (mid-size) electric vehicles maintained high sales shares, while C-class (mid-to-large) electric passenger cars recorded significant year-on-year growth. This indicates that consumer demand for electric vehicles is diversifying, with increasing interest in larger and more premium electric models, reflecting improvements in technology, range, and comfort offered by these vehicles.
The commercial vehicle sector also showed steady growth in H1, with production and sales reaching 2.099 million units and 2.122 million units, up 4.7% and 2.6% year-on-year respectively. Exports of commercial vehicles contributed to this performance, with 501,000 units exported, a year-on-year increase of 10.5%. While the growth rate is more modest compared to electric passenger vehicles, the stability of the commercial vehicle market is crucial for overall industry health, supporting sectors such as logistics, construction, and public transportation.
The strong performance of China’s auto industry in H1 can be attributed to a combination of favorable policies and market dynamics. The Chinese government has implemented a series of proactive macroeconomic policies aimed at stabilizing employment, boosting the economy, and promoting high-quality development. These policies have created a stable economic environment, which in turn has supported consumer confidence and spending on big-ticket items like automobiles. The “old-for-new” replacement policy, in particular, has been effective in stimulating domestic demand, encouraging consumers to upgrade their vehicles and driving sales growth across various segments, including electric vehicles.
CAAM analysts note that the auto market’s positive momentum is closely linked to broader economic stability. With several key economic indicators posting double-digit growth in H1, the industry has benefited from a conducive macroeconomic backdrop. The ongoing expansion of the electric vehicle market is not only driving sales but also facilitating the transformation and upgrading of the entire automotive industry. As automakers invest more in research and development of electric vehicle technologies, battery systems, and autonomous driving features, the sector is moving towards higher value-added production, enhancing China’s global competitiveness in advanced manufacturing.
Looking ahead, the prospects for China’s auto industry, and particularly the electric vehicle segment, remain promising. The continued implementation of supportive policies, coupled with advancements in technology and infrastructure, is expected to sustain growth. The increasing availability of charging stations, improvements in battery efficiency, and the development of more affordable electric vehicle models will likely further accelerate the adoption of electric vehicles among consumers. Additionally, the growing global demand for sustainable transportation solutions presents significant opportunities for Chinese electric vehicle manufacturers to expand their international footprint.
In conclusion, the first half of 2025 has been a period of exceptional growth for China’s auto industry, with electric vehicles emerging as the key driver of this expansion. From strong domestic sales to surging exports, from the rise of Chinese brands to the diversification of electric vehicle models, the sector is demonstrating remarkable resilience and innovation. As the world transitions towards a more sustainable future, China’s leadership in electric vehicle production and sales positions it at the forefront of the global automotive revolution, with far-reaching implications for the industry, the economy, and the environment.