According to data from the China Association of Automobile Manufacturers, in January 2025, China's auto market showed a positive development trend, with both production and sales increasing and exports maintaining a positive trend, making a good start for the development of the automotive industry in the new year. Next, China Exportsemi will interpret this transcript for you in detail.
1. Passenger car market: production and sales grew steadily, and domestic brands performed well
According to the China Association of Automobile Manufacturers, the production and sales of passenger vehicles in January 2025 were 2.151 million and 2.133 million units, respectively, an increase of 3.3% and 0.8% year-on-year. While the overall market is growing steadily, the performance of domestic brands is particularly bright. In January, the wholesale share of self-owned brands exceeded 68%, and the retail share exceeded 61%, an increase of 8 and 6 percentage points respectively from last year. This reflects the model innovation of independent brands from product strength to channel management, which continues to be supported and recognized by users.
For example, traditional independent automakers such as BYD, Geely, Chery, and Changan continue to occupy the leading position, and the sales share of manufacturers has increased from 38% in the previous year to 46% in January 2025, representing the success of the new energy transformation of traditional independent enterprises. By continuously improving product quality, increasing R&D investment, and optimizing marketing strategies, these car companies stand out in the fierce market competition and set an example for the development of their own brands.
Figure: According to data from the China Association of Automobile Manufacturers, China's auto market showed a positive development trend in January 2025
2. New energy vehicle market: rapid growth and huge market potential
The new energy vehicle market will continue to maintain rapid growth in January 2025, becoming a bright spot in the automotive market. In January, the output of new energy vehicles reached 1.015 million units, and the sales volume was 944,000 units, an increase of 29% and 29.4% year-on-year respectively, and the proportion of new energy vehicle sales in the total sales of new vehicles has reached 38.9%.
In terms of specific data, the production of new energy passenger vehicles reached 940,000 units in January, a year-on-year increase of 25.8% and a month-on-month decrease of 35.1%; Wholesale sales reached 889,000 units, up 27.1% year-on-year and down 41.2% month-on-month. Retail sales reached 744,000 units, up 10.5% year-on-year and down 42.9% month-on-month. Despite the month-on-month decline, the year-on-year growth rate is still significant, showing the strong development momentum of the new energy vehicle market.
In terms of technology, the cruising range and charging speed of new energy vehicles are constantly improving. For example, CATL released new battery technology in 2024 that significantly improves the energy density and charging speed of batteries. At the same time, car companies are also constantly launching new energy vehicle models to meet the needs of consumers. For example, Xiaomi released a new energy vehicle model, the SU7, in January 2025, which has received a lot of attention from the market.
3. Automobile exports: Steady growth, new energy vehicle exports performed eye-catchingly
In terms of automobile exports, China's overall automobile exports reached 470,000 units in January 2025, a year-on-year increase of 6.1%. Exports of new energy vehicles totaled 150,000 units, reflecting a 49.6% y/y increase. The rapid growth of new energy vehicle exports reflects the continuous improvement of the competitiveness of China's new energy vehicles in the global market.
According to the China Passenger Car Association, passenger car exports (including finished vehicles and CKDs) in January 2025 totaled 380,000 units, up 3% y/y and down 6% m/m. NEVs accounted for 35.9% of total exports, up 7.5 percentage points from the same period last year. This shows that the international competitiveness of Chinese automobiles in the field of new energy is gradually improving.
The layout of Chinese auto companies in the global market is also deepening. For example, NIO announced its presence in the European market in 2023 and plans to gradually expand its market share in Europe in the next few years. At the same time, car companies are also constantly improving product quality and service levels to meet the needs of overseas consumers.
4. Policy supports and industry outlook: transformation and upgrading, to meet challenges
In the next few years, China's automotive industry will face a critical period of transformation and upgrading. With the rapid development of the new energy vehicle market, the traditional fuel vehicle market will gradually shrink. Car companies need to accelerate transformation and upgrading, and increase investment in the R&D and production of new energy vehicles to adapt to market changes. At the same time, car companies also need to continuously improve product quality and service levels to meet the increasingly diverse needs of consumers.
In terms of policy, the government will continue to increase support for new energy vehicles. For example, the government may introduce more subsidy policies and preferential policies to encourage consumers to buy new energy vehicles. At the same time, the government may also strengthen emission standards and environmental protection requirements for traditional fuel vehicles to promote the transformation and upgrading of the automotive industry.
Denis Depoux, Co-President of Roland Berger's Global Management Committee, said: "China's economy and society are undergoing a long-term and profound transformation. To build long-term competitiveness and achieve sound and sustainable development, China must move away from its traditional growth model, which relied on labor and large-scale investment, to a new growth model driven by innovation and technology. This comprehensive and profound transformation will further enhance the resilience of China's economy, enabling China to respond more calmly to the risks and challenges of economic and social development and the changes in the international situation.”
5. Conclusion
In January 2025, China's auto market ushered in a steady start, with the production and sales of passenger cars and new energy vehicles showing a growth trend, and automobile exports also maintaining steady growth. The rapid growth of the new energy vehicle market is the biggest highlight of the industry, showing that the new energy vehicle market has entered a stage of rapid development. In the next few years, China's automotive industry will face a critical period of transformation and upgrading, and car companies need to accelerate transformation and upgrading, and increase investment in the R&D and production of new energy vehicles to adapt to market changes. At the same time, the government will continue to increase support for new energy vehicles and promote the transformation and upgrading of the automotive industry.
