China’s Automobile Market in 2025

According to data from the China Association of Automobile Manufacturers (CAAM), China’s automobile shipments in 2025 expanded to 34.4 million units, a 9.4% increase from the previous year. A breakdown of the shipment volume shows that domestic production (production supplied to the domestic market) of passenger vehicles rose 6.4% year-on-year to 24.07 million units, with the growth rate increasing by 3.3 percentage points from the year before. This growth is attributed to the support of the government's vehicle trade-in policy and "last-minute demand" ahead of the reduction in incentives for new energy vehicle (NEV) purchase taxes.* Domestic production of commercial vehicles recovered to 3.24 million units after the previous year’s slump. Electrification drove the replacement of semi-trucks, heavy-duty trucks, and minibuses. Exports continued to be the primary driver of sustained shipment growth. Passenger vehicle exports rose 21.9% to 6.04 million units, while commercial vehicle exports increased 17.2% to 1.06 million units, bringing total export volume to the 7-million-unit scale. A key driver of this surge was the 1.33-million-unit year-on-year increase in NEV exports. Exports now account for 20% of total shipments and serve as the engine of growth for the Chinese automotive market.