The registration volume of domestically produced passenger vehicles (PVs) on the Chinese Mainland experienced a decline in January 2025, with a year-on-year decrease of 17% and a month-on-month plunge of 34.29%. The data compiled by the Gasgoo Auto Research Institute (“GARI”) revealed that a total of 1,790,206 units were registered during the month.
Out of the registered vehicles, new energy vehicles (NEVs) accounted for 39.35% of the total PV registrations, with 704,396 units being NEVs. On the other hand, oil-fueled vehicles made up the majority of registrations, with 1,019,404 units registered, representing 56.94% of the market.
The increase in the market share of oil-fueled vehicles was attributed to the early onset of the Chinese New Year holiday, which led to a surge in car buying earlier in the month. Many consumers opted for oil-fueled vehicles due to their stable range performance and convenient refueling for long-distance travel. Additionally, limited charging infrastructure in lower-tier cities and rural areas, coupled with the impact of low winter temperatures on electric vehicle range, further contributed to the preference for oil-fueled vehicles.
Despite the decline in registrations, some manufacturers strategically allocated sales to January 2025 to support local economic growth and ensure a strong start to the new year. The pre-Chinese New Year period is typically a low production phase for automakers as retailers focus on clearing inventory amid strong consumer demand.
In terms of brand rankings, Volkswagen reclaimed the top spot in January with 190,958 vehicles registered, surpassing BYD. Other Chinese self-owned brands like Geely, Changan, and Chery also ranked high on the list. Tesla, the only wholly foreign-owned brand in the top 20, ranked 17th with 33,766 units registered.
When it comes to new energy passenger vehicle (NEPV) registrations, BEVs continued to dominate, accounting for 55.43% of the total. BYD retained its leading position among NEV brands, with other Chinese brands like XPENG, Li Auto, and Leapmotor also making the top 10 list.
In terms of NEPV models, Tesla’s Model Y secured the highest registrations in January, followed by models from Xiaomi and Geely. Guangzhou and Shenzhen were the top cities for NEPV registrations, benefiting from milder winter temperatures that made NEVs more attractive to consumers.
Overall, the decline in PV registrations in January 2025 was partly influenced by the Chinese New Year holiday and other seasonal factors. Despite the challenges, the Chinese automotive market continues to show resilience and innovation in the transition towards new energy vehicles.
