In the first four months of 2025, China's automobile production and sales both surpassed 10 million units for the first time, according to data released by the China Association of Automobile Manufacturers (CAAM) on Monday.
From January to April, vehicle production reached 10.175 million, up 12.9 percent year-on-year, while sales reached 10.06 million, up 10.8 percent year-on-year.
Sales of new-energy vehicles (NEVs) totaled 4.3 million from January to April, up 46.2 percent year-on-year, accounting for 42.7 percent of total new vehicle sales. NEV production reached 4.429 million, up 48.3 percent year-on-year, according to CAAM data.
NEV exports totaled 642,000, up 52.6 percent year-on-year.
The figures marked a good start to the year, with the CAAM in January estimating that China's automobile sales in 2025 could reach 32.9 million, up 4.7 percent year-on-year.
Passenger vehicle sales are projected to reach 28.9 million, up 4.9 percent year-on-year. NEV sales are expected to hit 16 million units, up 24.4 percent.
Exports are expected to reach 6.2 million, up 5.8 percent year-on-year, according to the CAAM.
Zhang Xiang, secretary-general of the International Intelligent Vehicle Engineering Association, told the Global Times that the good start in the automobile sector has been bolstered by China's stable policy environment and robust economic growth.
Wu Shuocheng, a veteran automobile industry analyst, attributed the bright prospects of NEV exports to their strong appeal in emerging markets. "This is fueled by Chinese vehicles' superior performance, competitive pricing and innovative features," Wu told the Global Times.
Wu credited the success of Chinese automakers to years of supply chain optimization and pioneering advancements in electrification and intelligent technologies.
Five favorable factors are expected to support the vehicle sector this year, Xu Haidong, deputy chief engineer at the CAAM, said in January at a press conference.
Xu cited the accelerated release of macroeconomic policies and their impact on the sector's vitality, the sustained impact of the equipment upgrade and consumer goods trade-in programs, the continuation of the purchase tax exemption for NEVs, the ongoing expansion of overseas market opportunities, and significant achievements in supply-side structural reforms.
According to the Ministry of Commerce (MOFCOM), as of Sunday, the number of applications for vehicle trade-in subsidies had reached 3.225 million, including 1.035 million for scrapping and updating vehicles and 2.19 million for replacement updates. Since the implementation of the vehicle trade-in policy in 2024, the cumulative number of subsidy applications has exceeded 10 million.
The vehicle trade-in policy has effectively boosted the growth of automobile consumption. Green and intelligent consumer models are particularly favored, with NEVs accounting for more than 53 percent of the trade-ins thus far this year, CCTV News reported.
Meanwhile, China is sharing its vast market with multinationals.
"In the consumer goods trade-in program, we treat foreign enterprises equally and support their participation," said Li Weizheng, a MOFCOM official, on January 7 at a press conference.
In vehicle trade-in programs, new vehicles of foreign brands accounted for about 35 percent of sales in 2024, driving relatively rapid growth for foreign automakers in China, said Li.
This year's good start was achieved on a high base in 2024. China's total automobile production and sales have ranked first globally for 16 consecutive years, said the CAAM.
China's automobile production reached 31.282 million units in 2024, up 3.7 percent year-on-year, while sales totaled 31.436 million, up 4.5 percent year-on-year, setting new records and maintaining a scale above 30 million units, according to the CAAM.
The output and sales of NEVs witnessed significant growth in 2024. For the full year, NEV production totaled 12.888 million units, a year-on-year increase of 34.4 percent, and sales totaled 12.866 million, up 35.5 percent. NEV sales accounted for 40.9 percent of total new vehicle sales, up 9.3 percentage points from 2023.
