China Hits Record Auto Sales in H1 2025: Over 15 Million Vehicles Sold, EVs Drive Growth

China's auto industry roared through the first half of 2025, achieving a historic milestone with both production and sales exceeding 15 million units. This robust performance underscores the sector's accelerating recovery and the powerful impact of supportive government policies, particularly in the new energy car segment.

H1 2025: Record Production & Sales Surge

Between January and June 2025, China solidified its position as the world's largest automobile market. Total vehicle production reached a staggering 15.621 million units, while sales hit 15.653 million units. This represents significant double-digit year-on-year growth for both metrics. Crucially, new energy car sales, encompassing battery car and plug-in hybrid models, were a primary engine. Electric vehicle production stood at 6.968 million units, with sales reaching 6.937 million units – surging by 41.4% and 40.3% respectively compared to H1 2024. Electric vehicle sales now account for a remarkable 44.3% of all new car sales in China. This shift is fundamentally reshaping the automobile landscape.

Policy Power: Trade-Ins & Domestic Demand Fuel Market

The government's push, particularly the national vehicle trade-in program, proved highly effective in stimulating domestic consumption. Car sales within China totaled 12.57 million units in H1, an 11.7% year-on-year increase. This strong domestic appetite provided crucial support for the overall market expansion. Momentum continued into June, with domestic automobile sales showing both month-on-month and year-on-year growth. Dealers report showrooms busy with buyers leveraging trade-in incentives, a clear sign the policy is working. Demand rises, inventory moves.

EVs Dominate: Passenger Cars Hit 50% Penetration

June delivered a watershed moment for electric vehicle adoption. Sales of new energy passenger car models within China soared past the 50% mark of total passenger car sales for the first time in a single month. This means one out of every two new passenger cars sold was a battery car or plug-in hybrid. The transformation extends to commercial vehicles too, where new energy car sales captured a substantial 25% of the domestic market share in June. Consumers are clearly embracing the new energy car future.

Exports Maintain Strong Trajectory, Led by New Energy

China's position as a major automobile exporter remained strong during the first half. Overall vehicle exports reached 3.083 million units, a solid 10.4% increase year-on-year. The standout performer was the new energy car export sector. Shipments of electric vehicle and plug-in hybrid models surged to 1.06 million units, representing a massive 75.2% jump compared to the same period last year. This highlights the growing global competitiveness of Chinese battery car manufacturers. Overseas markets are snapping up these advanced automobile offerings.

Sustained Growth Expected in H2

Industry leaders anticipate the positive momentum to continue. Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers (CAAM), stated, "Looking ahead to the second half of the year, the continued orderly implementation of the 'two new' policies, coupled with automakers' enriched new product offerings, will help drive sustained growth in car consumption." Chen also emphasized the need for "further standardizing market competition order, strengthening industry self-discipline, and reinforcing policy guidance and supervision to support the healthy and stable operation of the industry." The focus remains on nurturing the automobile sector's long-term health.