The China Passenger Car Association (CPCA) has released its latest forecast for the domestic passenger car market, predicting that total car retail sales in China will reach 23.4 million units in 2025, a year-on-year increase of 2%.
Source: China News Service
The China Passenger Car Association (CPCA) has released its latest forecast for the domestic passenger car market, predicting that total car retail sales in China will reach 23.4 million units in 2025, a year-on-year increase of 2%. Of this total, new energy vehicle (NEV) retail sales are expected to account for 13.3 million units, reflecting a robust 20% year-on-year growth and a domestic penetration rate of 57%.
In December 2024, NEV retail sales in China reached 1.302 million units, representing a 37.5% year-on-year increase. Production of NEVs during the month stood at 1.455 million units, up 32.2% from the previous year, while NEV exports totaled 122,000 units, marking a 21.5% year-on-year rise. The domestic retail penetration rate for NEVs in December was 49.4%, up 9.1 percentage points compared to the same period in 2023.
According to the CPCA, December's strong market performance was driven by multiple factors, including a robust start to the month, intensified efforts by automakers to meet annual targets, and policy measures aimed at promoting large-scale equipment upgrades and the replacement of old consumer goods. Additionally, heightened demand for car purchases ahead of the Chinese New Year further boosted the market's momentum.
Looking forward to January 2025, the CPCA highlighted that ongoing regional "Two New" policies and company-issued guarantees to stabilize sales will likely continue to sustain high levels of activity in the new car market.