China Auto Market Pulse: June 9-15, 2025 - EVs Drive Strong Growth Amid Shifting Trends

The Chinese automobile market maintained robust momentum during early June (June 1-15), fueled significantly by the new energy car sector. Nationwide retail sales of passenger electric vehicles reached an impressive 402,000 units, surging 38% compared to the same period last year. Battery car penetration hit 57% of the total passenger vehicle market. Year-to-date, consumers have snapped up 4.76 million new energy passenger cars, a solid 35% increase.

Breaking down the weeks: the first week saw average daily retail sales at 42,000 units (up 17% YoY), followed by a stronger second week averaging 53,000 units daily (up 23% YoY). Overall, the first half of June saw 706,000 passenger vehicles retailed, growing 20% YoY. While down 9% from May, this brings the cumulative 2025 total to 9.52 million units, marking a 10% increase.

Market Drivers & Policy Impact
Several factors are energizing the automobile market. Better-than-expected economic conditions, particularly improved exports over the past two months, have bolstered domestic demand. National and local pro-consumption policies are creating a vibrant atmosphere. Dealers are aggressively promoting trade-in programs, especially as some regional subsidy funds face temporary constraints. Manufacturer "one-price" strategies are providing short-term stability, and consumers recognize these strong subsidies as prime buying opportunities. Post-university entrance exam demand and summer road trip planning are adding further heat. Beijing's allocation of an additional 20,000 new energy car licenses specifically boosted June sales.

Consumption Trends & Production
Consumer preferences are evolving. While pure electric vehicles dominated early 2025, plug-in hybrids (PHEVs) and extended-range SUVs have staged a strong comeback since May. This, coupled with resilient conventional car demand, powered the early June surge. Broader automobile production remains healthy. May saw 2.64 million vehicles produced (+11% YoY), with new energy cars hitting 1.25 million units (+32% YoY) for a 47% penetration rate. Year-to-date production stands at 12.76 million vehicles (+11% YoY), including 5.64 million battery cars (+41% YoY, 44% penetration).

Battery Market Deep Dive (May 2025)
The battery car ecosystem continues its rapid expansion. Total lithium-ion battery output in May reached 123.5 GWh, soaring 46% YoY. Cumulative January-May output hit 568 GWh (+42% YoY). However, the proportion of batteries actually installed in vehicles dipped to 42% in 2025 YTD. May installations hit 57.1 GWh (+43% YoY). Lithium Iron Phosphate (LFP) dominates, powering 81% of installations with 58% growth, while Ternary (NCM/NCA) battery growth slowed significantly (+1%, 18% share).

New energy vehicle production based on certificates reached 1.12 million units in May (+32% YoY), with the YTD figure at 4.78 million (+40% YoY). Pure electric passenger cars led (2.88 million, +53%), followed by PHEV passenger cars (1.65 million, +24%). Notably, mainstream battery energy density for pure electric vehicles now clusters between 125-160 Wh/kg. The 125-140 Wh/kg range dominated Q2 2025, claiming 62% share (up 14 percentage points YoY), while packs exceeding 160 Wh/kg fell to just 5% (down from 13% in 2024).

Competitive Landscape
The battery sector is fiercely competitive. CATL and BYD remain the dominant players. CATL solidified its lead in LFP market share during 2024. While BYD pushed back aggressively in Q2 2025, its share is still down 4.8 percentage points YoY. EVE Energy and CALB showed strong performance. Sunwoda, REPT Battero, SVOLT, and Gotion High-Tech also made significant gains. BYD's strategic shift to LFP has cemented CATL, LG Energy Solution, and SVOLT's dominance in the ternary battery space. Recent strong performers include Greater Bay Technology and EVE Energy.