Retail sales of locally-produced passenger vehicles in China, including sedans, MPVs, and SUVs, rose by over 6% to 2.241 million units in September 2025, up from 2.108 million units in the same month last year, according to data compiled by the China Passenger Car Association (CPCA).
September was the eighth consecutive month of growth for the domestic passenger vehicle market, as consumers continued to respond to government sales incentives, including an incentivised trade-in programme for old cars, as well as aggressive price competition among local manufacturers. Vehicle sales are expected to continue to grow in the fourth quarter, ahead of the anticipated phase-out of government incentives at the end of the year.
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The Chinese government earlier this year confirmed that it would continue to fund its subsidy programmes at least until the end of 2025, but ordered local vehicle manufacturers to rein in their excessive discounting, which is seen as damaging the profitability and prospects of the country’s smaller, less established electric vehicle (EV) brands.
Chinese-owned brands continued to outperform last month, with retail sales rising by 15% to 1.5 million units, according to the association, accounting for two-thirds of total passenger vehicle sales in the country. New energy vehicle (NEV) sales rose by 16% year-on-year to 1.296 million units, driven by a 64% surge in battery electric vehicle (BEV) sales to 826,000 units, while plug-in hybrid sales fell by 3% to 469,000 units.
In the first nine months of 2025, overall passenger vehicle retail sales in China rose by 9.2% to 17.005 million units from 15.572 million units in the same period last year, driven mainly by strong demand for sedans and SUVs. NEV sales increased by 24% to 8.88 million units in this period, equivalent to 52% of total passenger vehicle sales.
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