Retail sales of passenger vehicles in China, including sedans, MPVs, and SUVs, declined by 0.8% year-on-year to 2.27 million units in October 2025 from 2.26 million units in the same month last year, according to data compiled by the China Passenger Car Association (CPCA).
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After eight consecutive months of growth, driven by government sales incentives and aggressive price competition among local manufacturers, the market is now looking somewhat saturated. Sales last month also came up against strong year-earlier volumes, when deliveries to customers rose by 11%. China’s GDP growth slowed to 4.8% year-on-year in the third quarter of 2025, reflecting weak consumer sentiment and growing uncertainty over the country’s trade relations with the US.
The Chinese government is expected to reduce its vehicle sales stimulus programme at the end of the year, which should lead to a strong final two months for the domestic vehicle market – albeit against high year-earlier volumes.
In the first ten months of 2025, overall passenger vehicle retail sales in China rose by 9% to 19.395 million units from 17.990 million units in the same period last year, driven mainly by strong demand for sedans and SUVs.
Sales of new energy vehicles increased by just over 7% to 1.3 million units last month and by 23% to 10.27 million units in the first ten months of the year, equivalent to 53% of passenger vehicle retail sales in the country.
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