China’s Auto Production and Sales Top 10 Million Units in First Four Months of 2025 — NEV Penetration Rate Surpasses 42%

ndependent Brands Lead Globally as Industry Accelerates Smart Transformation

Beijing, May 12, 2025 — The China Association of Automobile Manufacturers (CAAM) released data today showing that from January to April 2025, both China’s auto production and sales exceeded 10 million units for the first time, reaching 10.175 million and 10.06 million units respectively — a year-on-year increase of 12.9% and 10.8%. New Energy Vehicles (NEVs) were a key growth driver, with production and sales hitting 4.429 million and 4.3 million units respectively, pushing NEV market penetration to 42.7%. China continues to solidify its leadership in the global transition to electrified mobility.

Dual Engines: NEVs and Independent Brands Drive Growth1. NEVs: Tech Advancement Fuels Market ExpansionSupportive policies and rising consumer demand are propelling NEV sales. China’s nationwide vehicle trade-in program has already driven over 2.7 million replacements, with NEVs making up 44.6% of new purchases. Brands such as BYD and XPeng are leading the market, with BYD maintaining its position as the global NEV sales champion at 380,000 units.

2. Independent Brands Go GlobalChinese automakers are achieving breakthroughs in innovation and global presence. BYD, Geely, Chery, and Changan dominated the domestic passenger car market, contributing over 1 million units collectively. Chery led in vehicle exports with 88,000 units, with emerging markets like Russia and Mexico fueling demand.

Exports Scale Up, Structure UpgradedFrom January to April, China exported 1.937 million vehicles, up 6% year-on-year. NEV exports surged 52.6% to 642,000 units. The export portfolio is shifting toward premium models. Notably, Hongqi’s debut of its first luxury electric sedan and a flying car at the Shanghai Auto Show underscored its “All-in on NEVs” strategy.

Looking Ahead: Smart Tech and ICE-EV Policy ParityCAAM notes a shift from scale-driven to technology-driven growth. Leading automakers like FAW and BYD are embracing the AI-native era. FAW recently launched “OpenMind,” the industry’s first enterprise-level intelligent agent, pushing forward full-scale digital transformation. With smart driving technologies becoming mainstream and “equal rights” policies for internal combustion and electric vehicles taking hold, the shift to premium, intelligent mobility is gaining momentum.

ConclusionChina’s auto industry has entered a new phase of high-quality growth, marked by surpassing the 10-million-unit milestone in both production and sales. The twin surges in NEVs and independent brand performance reinforce the country’s rising competitiveness in the global auto landscape. Looking forward, a synergy of policy, technology, and market dynamics will continue to secure China’s leading position in the automotive industry.