China’s Economy Shows Positive Signs in January 2025
Beijing (Gasgoo)- In January, China’s overall economic output continued to expand, with corporate expectations rising significantly. With the support of several policies, businesses remain optimistic about the future market. During the Chinese New Year holiday, China’s supply and demand in the consumer market were both strong, and the “old-for-new” trade-in policy for consumer goods continued to yield positive effects. The robust growth in consumer demand created favorable conditions for the Chinese economy to achieve fast growth throughout the year.
Although the number of effective working days was limited in January, vehicle production showed slight growth in China, and sales only saw a minor decline compared to the same period last year, thanks to favorable factors such as the “old-for-new” policy and the booming Chinese New Year economy. The automotive industry has had a smooth start to the year. The passenger vehicle market maintained a strong performance, with both production and sales seeing year-on-year increases. New energy vehicles (NEVs), along with auto exports, also continued to perform well.
The automotive industry is a crucial driver of economic growth, and its stable operation is vital to maintaining overall economic stability. Before the end of 2024, China’s Central Economic Work Conference outlined the 2025 economic work plan, setting a more proactive policy tone to support the continued recovery of the economy and boost market confidence and expectations. The first post-Chinese New Year State Council meeting placed greater emphasis on boosting consumption, with relevant ministries actively implementing the central government’s plans. With the rollout and implementation of a series of policies, it is expected that the automotive industry will stabilize and achieve a strong start to the year of 2025.
In the first month of 2025, there were 2.45 million vehicles produced in China, representing a 27.2% month-on-month decline but a 1.7% year-on-year growth. Meanwhile, China’s auto sales stood at 2.424 million vehicles, which tumbled 30.5% from the previous month and dipped 0.6% from the previous year, according to data provided by the China Association of Automobile Manufacturers (CAAM). Considering that there were a lot fewer working days in January 2025 compared to that of the previous year and month, China’s overall auto market maintained relative stability.
Specifically, January passenger vehicle output and sales amounted to 2.151 million units and 2.133 million units respectively, down 28.4% and 31.6% month-on-month, while climbing up 3.3% and 0.8% year-on-year.
Of the passenger vehicles sold in the past month, around 1.459 million units were under China’s indigenous brands, which jumped 14.1% from a year ago and accounted for 68.4% of the total passenger vehicle sales (+8 percentage points YoY).
In the meantime, China’s commercial vehicle production and sales decreased 17.2% and 21.2% from the month-ago level, as well as 8.6% and 10.3% from the year-ago period, respectively, to 299,000 units and 290,000 units.
In the first month of 2025, China’s NEV output and sales sustained steady growth. To be specific, the country’s NEV production reached 1.015 million units, jumping 29% year over year. Meanwhile, sales of NEVs stood at 944,000 units, leaping 29.4% from the previous year. NEVs made up 38.9% of China’s total vehicle sales in the past month.
Domestic NEV sales amounted to 793,000 units in January, up 26.2% year-on-year but down 45.8% month-on-month. Of those, about 756,000 units were passenger vehicles (-45.7% MoM, +25.9% YoY), and roughly 37,000 units were commercial vehicles (-46.7% MoM, +31.4% YoY).
In the meantime, NEV exports totaled 150,000 units in the past month, which grew 12.6% from the previous month and spiked 49.6% from the previous year. Exports of new energy passenger vehicles stood at 144,000 units (+15.4% MoM, +46.2% YoY), and that of new energy commercial vehicles reached 7,000 units (-25.9% MoM, +210% YoY).
In the past month, of the top ten vehicle exporters in China, Chery took the lead with 81,000 vehicles shipped to overseas markets, which declined 10.3% from the year-ago period and accounted for 17.2% of the country’s total monthly auto exports.
Compared to the same period last year, BYD achieved the most notable growth, with around 70,000 vehicles moved overseas, representing a 91.5% year-on-year soar.
