China’s automotive industry experienced a surge in production and sales in February 2025, following the Chinese New Year holiday. New product launches and promotional events contributed to the market’s vitality, resulting in significant year-on-year growth in both vehicle production and sales.
The passenger vehicle segment continued to perform well, while the commercial vehicle market showed signs of recovery. Additionally, sales of new energy vehicles (NEVs) continued to rise rapidly, indicating a strong start to the year for the Chinese auto market.
Government ministries in China have introduced targeted measures to stimulate market growth, including expanding trade-in policies and stabilizing foreign investment. These efforts align with the country’s economic strategies outlined in the Central Economic Work Conference, which prioritize boosting domestic demand and consumption to drive economic growth.
Despite a slight month-on-month decline, China’s NEV market maintained its robust growth trajectory in February. NEV production and sales saw significant year-on-year increases, with NEVs accounting for a substantial portion of the country’s total auto sales volume.
In the first two months of 2025, China’s NEV production and sales volumes surged by 52% year over year, with NEVs making up 40.3% of the country’s total auto sales. Domestic NEV sales saw a substantial increase, while NEV exports also grew significantly compared to the previous year.
Chinese automakers performed well in overseas markets, with the country’s monthly auto export volume increasing by 16.9% year over year in February. In the first two months of the year, overall auto export volume grew by 10.9% compared to the same period last year.
Among the top ten auto export companies in China, Chery led the way with an export volume of 86,000 units in February. BYD experienced the largest growth, with a threefold increase in vehicle exports compared to the previous year.
Overall, the Chinese automotive industry’s strong performance in February sets a positive tone for the rest of the year. With continued government support and a focus on innovation, the industry is poised for high-quality development and sustained growth in the coming months.
