FLASH REPORT: China's Automotive Industry in 2025 Achieves Record Sales of 34.4 Million Units – Strong Growth in New Energy Vehicle Sales, What Are the Future Challenges?

Riskmonster Inc. (Headquarters: Chuo-ku, Tokyo, Representative Director and President: Taichi Fujimoto, hereinafter 'Riskmon'), which provides credit management cloud services for corporate members, has announced the 'China Automotive Industry Flash Report 2025'.

**Background of the Survey**

In 2025, China's automobile sales (including exports) reached a record high of 34.4 million units, making it the world's largest for 17 consecutive years. Among these, sales of New Energy Vehicles (NEVs) significantly increased, with 16.49 million units accounting for 47.9% of the total, indicating that NEVs have become the mainstream of the Chinese automotive industry.

This report organizes the factors supporting this market expansion and outlines challenges that could affect future growth, such as intensifying trade friction, fierce price competition, and tightening financial conditions.

**Summary of Survey Results**

**<Positive Factors>**

* China's automobile sales (including exports) reached 34.4 million units (up 9.4% year-on-year), a record high. * NEV sales reached 16.49 million units (up 28.2% year-on-year), accounting for 47.9% of total sales. * Three Chinese companies ranked high in global EV (Battery EV (BEV) and Plug-in Hybrid (PHEV) combined, according to CleanTechnica) sales, expanding the presence of NEV exports.

**<Challenges>**

* Trade friction and price competition overlap, leading to ongoing reorganization and consolidation. * Enhancement of technology development and safety measures, and establishment of mass production systems.

▼ For more details on this survey, please visit the 'Riskmon Research' website.

https://www.riskmonster.co.jp/study/research/

**Survey Results**

**Positive Factors in the Chinese Automotive Industry**

**(1) New Energy Vehicles (NEVs) drive automobile exports**

In 2025, China's automobile exports reached 7.098 million units (up 21.1% year-on-year), surpassing 7 million for the first time. While gasoline car exports decreased by 2.0% year-on-year, NEV exports approximately doubled year-on-year, expanding to account for one-third of total exports. China's automobile exports are shifting from traditional gasoline cars to NEV-centric. (Figure 1)

Comparing automobile export volumes between Japan and China, China has widened the gap since surpassing Japan in 2023. This is believed to be influenced by technological innovation in the NEV sector and improved competitiveness of Chinese brands. (Figure 2)

**(2) Over 50% of domestic sales in China are NEVs**

Out of 27.302 million units of automobiles sold domestically in China in 2025 (up 6.7% year-on-year), NEVs accounted for 13.875 million units (up 19.8% year-on-year, 50.8% share), becoming mainstream. Government purchase support measures, diversification of models, and development of charging infrastructure are believed to have boosted NEV sales.

**(3) Chinese NEV manufacturers demonstrate global presence**

In the 2025 global EV (BEV+PHEV, CleanTechnica data) sales ranking, China's BYD maintained its No. 1 position, while Geely and Wuling also ranked high. Ten Chinese manufacturers were among the top 20, indicating that Chinese players are increasing their presence in the electric vehicle market. (Figure 3)

**Status of various manufacturers in the Chinese automotive market**

**(4) Shrinking market share for foreign manufacturers**

Against 30.103 million units of passenger cars produced and sold in China in 2025, Chinese manufacturers' market share reached 69.5%, increasing their domestic sales share. On the other hand, foreign manufacturers' market share decreased: German by 2.5 percentage points year-on-year, Japanese by 1.5 percentage points, US by 0.5 percentage points, and Korean by 0.1 percentage points. (Figure 4)

Looking at the new car sales of three Japanese manufacturers in China, Toyota Motor Corporation (hereinafter Toyota), Nissan Motor Co., Ltd. (hereinafter Nissan), and Honda Motor Co., Ltd. (hereinafter Honda) all saw year-on-year decreases in 2024. However, in 2025, Toyota saw a slight increase of 0.2% year-on-year (1.7804 million units), marking its first positive growth in four years since 2021. Meanwhile, Nissan and Honda recorded decreases of 6.3% (653,024 units) and 24.3% (645,345 units) respectively, indicating a continued severe situation (Figure 5).

Amidst the challenging market environment of NEV shift and price competition, Toyota's introduction of new NEV models supported its sales. The difference in responsiveness to NEVs, which are the main battleground of the Chinese market, and price competitiveness is believed to have determined the fate of each company.

**Future Challenges for the Chinese Automotive Industry**

**(5) Slowdown in growth due to intensifying trade disputes**