China's automotive sector cemented its global leadership in 2025, with new energy vehicle (NEV) production surpassing 16.6 million units – a 30% annual increase that now represents over half of all domestic car sales. This milestone comes as NEV exports doubled year-on-year, demonstrating the sector's growing international competitiveness.
The industry's record performance was driven by sustained policy support for green technology adoption and equipment upgrades. Total vehicle production and sales both exceeded 34 million units, marking China's 17th consecutive year as the world's largest auto manufacturer and consumer market.
Key achievements include:
11 straight years as global NEV production leader
NEV penetration rate exceeding 50% in new car sales
Export growth outpacing domestic market expansion
Analysts highlight this performance as critical to China's broader economic transition, with the automotive sector now contributing 10% of national GDP. The NEV boom is creating new opportunities across Asia's supply chains while positioning Chinese manufacturers as key players in the global shift toward sustainable transport.
