China’s automotive sector is targeting annual sales surpassing 40 million vehicles within the next five years, as forecast by the China Passenger Car Association (CPCA) secretary general, Cui Dongshu.
The projections also include exports, which are expected to reach ten million units in the international market.
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Additionally, Dongshu’s projections suggest a potential doubling of China’s auto exports by 2030.
He emphasises the growth opportunities that lie ahead for the country in both domestic and international markets.
Highlighting the disparity in vehicle ownership rates, Dongshu noted that the country’s current rate stands at 250 cars per 1,000 people, which is considerably lower than that of developed nations.
Dongshu, as reported by South China Morning Post, said: “There is still vast potential for market expansion in China’s less developed regions, such as mid-western districts and rural areas, where car ownership levels could gradually surpass those in metropolises like Beijing and Shanghai.”
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By GlobalDataFor context, according to the International Organization of Motor Vehicle Manufacturers, Europe reported 641 vehicles per 1,000 people in 2020, while the US had 860.
The secretary general also identified the Global South as an emerging market for Chinese vehicles.
Dongshu predicts that the Global South will become an important market for Chinese vehicles, with consumers opting for “cost-effective” Chinese brands over older, second-hand ones from traditional automotive leaders.
Another factor that could potentially drive demand is the shorter lifespan of electric vehicles (EVs), which Dongshu estimates at about ten years compared to 18 years for traditional petrol-powered cars.
As the transition to EVs accelerates, this could lead to increased vehicle turnover, the report said.
Last year, China recorded total auto sales of 31.4 million units, with EVs making up over 40% of this figure, as per the China Association of Automobile Manufacturers (CAAM).
The country’s government continues to back the domestic auto industry’s expansion, with recent policies aimed at ensuring steady growth through 2026. These policies include curbing excessive competition and promoting autonomous vehicle initiatives.
The CPCA’s compiled data show that retail sales of locally-produced passenger vehicles in the country rose by less than 5% to 1.995 million units in August 2025 from 1.906 million units in the same month last year.
