China's automotive sector sustained its rapid growth trajectory in April 2025, fueled by strategic government policies and evolving consumer preferences favoring cutting-edge technology. Retail sales of passenger vehicles surged 14.5% year-on-year to 1.7 million units—a record April performance for the past decade—as reported by the China Passenger Car Association (CPCA).
EVs Dominate as Policy Drives Adoption
New energy vehicles (NEVs) emerged as the growth engine, with sales skyrocketing 33.9% to 905,000 units. April marked a historic milestone as EVs claimed 51.5% of all passenger car sales, signaling a decisive shift in buyer behavior. Analysts attribute this acceleration to nationwide replacement incentives and tax breaks that lowered ownership costs.
Domestic Brands Charge Ahead
Chinese automakers strengthened their grip on the NEV market, achieving a 72.8% penetration rate among domestic brands. Frontrunners BYD, Geely, Chery, and Changan expanded market share through innovative models and enhanced brand equity. 'The localization of battery tech and smart vehicle ecosystems gives homegrown manufacturers a decisive edge,' noted the CPCA report.
Industry observers highlight that this momentum positions the Chinese mainland as both the world's largest EV market and a global hub for automotive innovation, with implications for regional supply chains and international trade patterns.
