Retail sales of passenger vehicles in China, including sedans, MPVs and SUVs, rose by just over 18% to 2.08 million units in June 2025 from 1.76 million units a year earlier, according to data compiled by the China Passenger Car Association (CPCA).

This was the fifth consecutive month of growth for the domestic vehicle market, as consumers continued to respond to government sales incentives, including an incentivised trade-in programme for old cars, as well as strong price competition among local manufacturers. The government confirmed it will continue to fund its subsidy programmes at least until the end of 2025.  

See also: Government subsidies drive China’s vehicle market up – GlobalData

Passenger new energy vehicle (NEV) retail sales rose by 30% year-on-year to 1.11 million units last month, including a 33% rise in sales of battery electric vehicles (BEVs) to 661,000 units and a 24% rise in plug-in hybrid sales, including extended range electric vehicles (EREVs), to 450,000 units.

In the first six months of 2025 overall passenger vehicle retail sales in the country rose by almost 11% to 10.9 million units from 9.84 million in the same period last year, driven by higher demand for sedans and SUVs. NEV sales increased by 34% to 5.456 million units in this period, equivalent to 50% of total passenger vehicle sales.