China’s passenger vehicle market continues to show strong growth, with retail sales reaching 1.995 million units in August 2025. This marks a 4.6% year-on-year increase and an 8.2% month-on-month growth, according to data from the China Passenger Car Association (CPCA). The cumulative retail sales for the year have reached 14.741 million units, reflecting a 9.5% increase from the previous year.
The growth in retail sales has moderated compared to the rapid acceleration seen in the first half of the year, but the August figures still set a new record, surpassing the previous high from August 2023. This steady upward trajectory aligns with forecasts of a “low start, strong middle, stable finish” pattern for 2025.
Industry analysts attribute this stability to the easing of intense price wars in the market. In August, the number of models offering discounts decreased, indicating a more stable pricing environment. Promotional intensity for new energy vehicles (NEVs) remained steady, slightly higher than last year. Traditional internal combustion engine (ICE) vehicles also saw consistent promotional activity.
Chinese self-owned brands have continued to strengthen their position in the market, with retail sales reaching 1.32 million units in August, a 9% year-on-year increase. Their market share has also increased, reaching 65.7%. Established players like Geely Auto, Chery Automobile, Changan Auto, and Great Wall Motor have made significant strides through accelerated transformation and success in both NEVs and exports.
On the other hand, mainstream joint ventures faced pressure, with a 2% year-on-year decrease in sales in August. German and Japanese brands experienced a decline in market share, while U.S. brands showed slight improvement. Premium vehicle brands also saw a decline in sales, with a 5% year-on-year decrease in August.
Wholesale figures outpaced retail sales, with 2.458 million units sold in August, a 14.5% year-on-year increase. Indigenous brands led the wholesale growth, with 1.72 million units sold in August, a 20% increase year-on-year. Joint ventures and premium brands also saw growth, albeit at a slower pace.
The rankings in the wholesale market continued to shift, with mid-tier automakers showing signs of catching up. Geely Auto, Dongfeng Nissan, XPENG, Xiaomi EV, and Leapmotor all posted strong growth in August. Six passenger vehicle makers exceeded 100,000 units in sales, accounting for half of the market.
In terms of exports, China exported 763,000 vehicles in August, with passenger vehicle exports accounting for nearly two-thirds of the total. New energy vehicles were a key driver of exports, with Chinese brands dominating the market. Production also saw an increase, with passenger vehicle output reaching 2.406 million units in August.
Overall, the Chinese passenger vehicle market continues to show resilience and growth, driven by a combination of factors such as new energy vehicles, indigenous brands’ strength, and shifting dynamics in the industry.
