China’s vehicle sales increased 9.4% year-on-year to a record high of 34 million units in 2025, accelerating from 4.5% in the previous year, with new energy vehicle (NEV) sales surging 28.2%, according to data from the China Association of Automobile Manufacturers (CAAM). The figure surpassed the government’s target for 2025. Last October, eight government departments, including the Ministry of Industry and Information Technology, set a target of approximately 32.3 million vehicle sales for 2025, up around 3% year-on-year, with NEV sales expected to reach 15.5 million units, a projected 20% year-on-year increase. In December alone, vehicle sales fell 6.2% year-on-year to 3.273 million units, reversing a 3.4% rise in November. NEV sales rose 7.2% year-on-year in December, after a 20.6% surge in the previous month, marking the tenth consecutive monthly increase. On a monthly basis, total car sales fell 4.5% in December, reversing a 3.2% growth recorded in November.

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