China’s passenger vehicle (PV) retail sales in February 2025 showed a strong performance, with 1.386 million units sold, marking a 26% year-on-year increase. However, there was a 22.8% decline from the previous month. Despite this drop, the cumulative PV retail sales for the Jan.-Feb. period totaled 3.179 million units, reflecting a 1.2% YoY growth.
The new energy passenger vehicle (NEPV) sector also saw significant growth, with February retail sales reaching 686,000 units, a 79.7% YoY increase. The Jan.-Feb. total for the NEPV sector stood at 1.43 million units, a 35.5% YoY jump.
Several factors contributed to this market strength, including the Chinese New Year holiday starting on January 29, 2025, and government policies promoting vehicle replacement and trade-ins. Automakers also stabilized pricing strategies, leading to a relatively mild price war compared to previous years.
Despite initial concerns over macroeconomic conditions, both domestic and global factors exceeded expectations, boosting consumer confidence. Automakers maintained aggressive marketing efforts during the Chinese New Year holiday, and the low sales base of February 2024 provided a favorable comparison, helping the market achieve a strong post-holiday rebound.
In early February, consumer concerns over new energy vehicle (NEV) range and charging were heightened due to long-distance holiday travel and cold weather. This led to a seasonal decline in NEV penetration. However, as temperatures warmed and work resumed post-holiday, demand quickly rebounded. Automakers intensified promotions on plug-in hybrid electric vehicle (PHEV) models, leveraging governmental subsidies for vehicle replacement and trade-ins.
The rise of China’s AI sector, exemplified by companies like DeepSeek, has reshaped the global AI landscape, offering low-cost, high-performance solutions for in-vehicle AI integration. The Chinese government’s policy positioning smart NEVs as next-generation intelligent terminals has accelerated investment in smart cockpits and autonomous driving technologies, creating further market momentum.
In the PV market, China’s self-owned brands dominated in February, with retail sales reaching 910,000 units, a 51% YoY spike. Domestic market share for self-owned brands hit 65.6%, up 10.6 percentage points YoY. In contrast, mainstream joint ventures struggled in February, with combined sales falling to 330,000 units, down 2% YoY.
The premium PV segment also faced setbacks, with retail sales reaching 150,000 units, down 8% YoY. Overall, premium brands held a 10.8% market share in February.
Among the top 10 automakers by domestic retail sales of locally-made PVs, BYD ranked highest with sales of around 206,000 units, a 73.2% YoY increase. Geely Auto was credited as the fastest-growing automaker with a 106.8% YoY spike.
In February 2025, China’s PV wholesale sales reached 1.767 million units, setting a new record for the month with a 33.8% YoY increase. The NEPV segment remained a key growth driver, with wholesale volume hitting 830,000 units in February, a 79.6% YoY surge.
China’s wholly-owned automakers led the wholesale market in February, selling 1.25 million units, a 60% YoY hike. Mainstream joint ventures recorded 360,000 units in wholesales, an 8% YoY growth. The premium PV segment struggled, with 160,000 units wholesaled in February.
Geely Auto, Chery Automobile, and Changan Auto stood out with strong growth in wholesale sales. Geely Auto saw a 106.8% YoY spike in sales.
China’s PV production remained resilient, with 1.736 million units manufactured in February, up 38.7% YoY. Total production for the Jan.-Feb. period reached 3.829 million units, reflecting a 16.5% YoY increase. Despite the Chinese New Year break, February’s output was just 60,000 units shy of the 2017 historical high of 1.79 million units.
China’s automobile exports continued their strong momentum from 2024, with total exports reaching 970,000 units in the first two months of 2025. In February alone, PV exports reached 349,000 units, an 11% YoY increase.
Overall, the Chinese PV market showed resilience and growth in February 2025, driven by strong performances in the NEPV sector and by domestic automakers. The market dynamics, government policies, and technological advancements continue to shape the industry’s trajectory.
