Overview of China’s Automobile Market in May 2025
According to the China Association of Automobile Manufacturers (CAAM), the automobile market in China exhibited robust growth in May 2025, achieving double-digit increases in both production and sales compared to the previous year. This positive trend was buoyed by strong domestic demand and a solid performance in exports. While the passenger vehicle (PV) segment thrived, the commercial vehicle (CV) market displayed signs of stagnation. The new energy vehicles (NEVs) sector continued its impressive growth, and automotive exports accelerated notably.
Production and Sales Statistics
In May, automobile production in China reached 2.649 million units, while sales amounted to 2.686 million units. These figures represented month-on-month increases of 1.1% and 3.7%, respectively, and year-on-year growth of 11.6% in production and 11.2% in sales. Cumulatively, from January to May, the total automobile production hit 12.826 million units, reflecting a year-on-year uptick of 12.7%, whereas total sales reached 12.748 million units, marking a 10.9% increase from the same period last year.
Domestic Sales Insights
In terms of domestic sales for May, the figures reached 2.135 million units, which was a 3% rise from April and a significant increase of 10.3% compared to a year prior. Notably, traditional oil-fueled vehicle sales accounted for 1.04 million units, witnessing a slight decrease of 0.7% month-on-month and a 3.6% decline year-on-year. Over the course of the year’s first five months, domestic sales for automobiles tallied 10.258 million units, reflecting a 11.7% rise year-on-year, while traditional oil-fueled vehicle sales saw a decrease of 5.3% to 5.505 million units.
Export Highlights
China’s vehicle exports in May amounted to 551,000 units, showcasing a 6.6% increase from April and a 14.5% jump from May of the previous year. The accumulated vehicle exports for the first five months amounted to 2.49 million units, which represented a year-on-year rise of 7.9%. The growth trajectory of the PV sector remained strong in May, as production and sales indicated robust growth. According to CAAM data, PV production was recorded at 2.313 million units, showing a month-on-month increase of 2.5% and a year-on-year increase of 12.8%. Sales reached 2.352 million units, reflecting increases of 5.8% month-on-month and 13.3% year-on-year.
Passenger Vehicle Segment Performance
For the period from January to May, cumulative PV production reached 11.08 million units, which translates to a year-on-year growth of 14.1%. Sales for the same period hit 10.996 million units, reflecting a 12.6% increase compared to the previous year. In May, self-owned brands gained a larger share of the PV market, with sales hitting 1.622 million units—a 22.6% increase year-on-year—resulting in a market share of 69%, which was an increase of 5.3 percentage points from the same timeframe last year. Cumulatively, these brands recorded total sales of 7.562 million units in the first five months of the year, up 26.3% compared to the prior year, leading to a market share of 68.8%.
Traditional Fuel Vehicle Sales Analysis
Domestic sales of passenger vehicles in May were recorded at 1.884 million units, showing a 5.2% increase from April and a 12.3% year-on-year growth. Of this total, traditional oil-fueled passenger vehicle sales amounted to 854,000 units, marking a 2.2% rise month-on-month but presenting a 1% decline when compared to the same month in the previous year. Accumulatively, from January to May, domestic sales of passenger vehicles reached 8.916 million units, growing by 13.9% year-on-year. However, sales of traditional oil-fueled passenger vehicles fell by 4.1% to 4.446 million units.
Commercial Vehicle Performance
The commercial vehicle segment showed a somewhat mixed performance. In May, production and sales of commercial vehicles totaled 336,000 units and 335,000 units, respectively, reflecting declines of 7.4% and 8.8% month-on-month. Despite a year-on-year production increase of 4.4%, sales for the year showed a 2% decrease compared to the previous period. Notably, natural gas-powered CVs experienced a significant downturn, with sales falling by 4.4% month-on-month and 24.9% year-on-year to just 18,000 units.
Year-to-Date Commercial Vehicle Statistics
From January to May, the overall production of commercial vehicles reached 1.746 million units, while sales amounted to 1.753 million units, reflecting increases of 4.2% and 1.2% year-on-year, respectively. Nonetheless, sales of natural gas-powered commercial vehicles stood at just 102,000 units during the same period, which marked a significant decrease of 7.8%. For domestic CV sales in May, the numbers totaled 251,000 units—a 10.7% decline from April and a 2.5% decrease year-on-year. Cumulatively, the first five months saw domestic CV sales reach 1.342 million units, down 1.3% compared to the prior year.
Growth of New Energy Vehicles
The new energy vehicle sector marked continuous growth in May, with production and sales increasing by over 30% year-on-year. In total, NEV production reached 1.27 million units, representing a year-on-year growth of 35%, while sales climbed to 1.307 million units—a magnificent 36.9% rise compared to the previous year. In May, NEVs constituted 48.7% of all new vehicle sales.
Annual NEV Trends
From January to May, cumulative NEV production and sales reached 5.699 million and 5.608 million units respectively, demonstrating impressive year-on-year growth of 45.2% and 44%. During this period, NEVs comprised 44% of total new vehicle sales in China. In May, domestic market NEV sales rose by 6.8% month-on-month and 27.9% year-on-year to reach 1.095 million units, of which passenger vehicle sales were 1.03 million units, reflecting an increase of 7.8% from April and a 26.3% rise from the previous year.
NEV Exports and Market Outlook
China’s NEV exports also reported considerable growth, with 212,000 NEVs exported in May—an increase of 6.1% from April and more than double the figures from the same month last year. Within this total, passenger vehicles accounted for 204,000 units, representing a month-on-month rise of 7.4% and more than a 100% increase year-on-year. For the first five months, NEV exports surged by 64.6% compared to the previous year, totaling 855,000 units. Most of these included passenger vehicles, which reached 814,000 units, reflecting a year-on-year increase of 60.6%.
Leading Exporters in the Market
Among the top vehicle exporters in May, Chery emerged as the leading exporter, sending out 101,000 units—an increase of 9% year-on-year and accounting for 18.3% of total vehicle exports. BYD demonstrated remarkable growth, exporting 89,000 units, which is a 1.3-fold increase compared to the same month last year. In the first five months of 2025, Chery’s exports reached 442,000 units, marking a 1.6% year-on-year increase and constituting 17.7% of China’s total vehicle exports. BYD outperformed with exports of 382,000 units, which more than doubled year-on-year, demonstrating a strong upward trajectory in their international market presence.
