China’s car sales slow, but exports hit record high
China’s car sales growth slowed to its weakest pace in three years in 2025, while exports of made-in-China vehicles exceeded expectations, data from the China Passenger Car Association (CPCA) showed.
Domestic car sales rose just 3.9% for the year, down from 5.3% in 2024, with December sales falling 14.5% from a year earlier—the largest drop since February 2024. Sales of electric vehicles (EVs) and plug-in hybrids (PHEVs) surpassed gasoline vehicles for the first time annually, though growth slowed to 17.6% from 40.7% in 2024, News.Az reports, citing Reuters.
Domestic demand weakened in late 2025 after many cities cut government subsidies for auto trade-ins, intensifying competition in the world’s largest car market. Major automakers including Changan, FAW, Li Auto, and Nio failed to meet their sales targets.
BYD, China’s top automaker, posted its weakest growth in five years but reached a record 1 million units sold overseas, surpassing Tesla as the world’s largest EV exporter. Overall, Chinese car exports rose 19.4% to 5.79 million units, with EV and PHEV exports surging 86.2% to 2.42 million units.
The data highlights a clear shift as automakers rely more on international markets to offset slower domestic demand.
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