China's Passenger Vehicle Sales Hit 23.74 Million in 2025, with Domestic Brands Dominating at 65%

In 2025, nationwide retail sales of passenger vehicles reached 23.744 million units, up 3.8% year-over-year. Domestic brands captured a record-high market share of 65% for the full year—meaning 6.5 out of every 10 vehicles sold were from Chinese自主品牌. New energy vehicles (NEVs) served as the key growth driver, with annual retail sales hitting 12.809 million units and a penetration rate of 53.9%; in December alone, the NEV penetration rate surged to 59.1%. In contrast, mainstream joint-venture brands saw their December retail sales decline by 27% year-over-year, with an NEV penetration rate of only 8.2%. The traditional year-end "buying rush" failed to materialize, primarily due to waning consumer sentiment caused by the phase-out of trade-in subsidies and the expiration of the purchase tax exemption policy. Looking ahead to 2026, the China Passenger Car Association (CPCA) forecasts flat overall sales, sustained strong export growth, but mounting challenges from domestic inventory reduction pressures and the implementation of new national standards.