Auto sales demonstrate strong growth

China's auto production and sales recorded significant year-on-year growth in February, according to the China Association of Automobile Manufacturers.

Passenger vehicles maintained strong performance, the commercial vehicle market rebounded, and new energy vehicles continued to see rapid expansion.

"Following the Chinese New Year holiday, companies accelerated production and operations, with new product launches and promotional activities stimulating demand," said Chen Shihua, deputy secretary-general of the CAAM.

According to the CAAM data, auto production and sales in February reached 2.1 million and 2.13 million units, respectively, reflecting year-on-year increases of 39.6 percent and 34.4 percent.

The growth rate of auto production expanded by 14.5 percentage points compared to January, while the growth rate of sales increased by 13.7 percentage points.

"This boost in market activity has provided a solid foundation for a strong first-quarter performance," Chen added.

In February, passenger vehicle sales totaled 1.81 million units, up 36.2 percent from a year earlier. Notably, Chinese brands strengthened their market position.

Sales of Chinese-brand passenger vehicles reached 1.28 million units last month, up 62 percent year-on-year. Their market share rose to 70.6 percent — an increase of 11.2 percentage points from the same period of 2024.

In the first two months of 2025, total sales of Chinese-brand passenger vehicles stood at 2.74 million units, reflecting a 32.6 percent year-on-year increase and demonstrating strong market competitiveness.

"Since the beginning of the year, an expanded round of vehicle trade-in policies has been implemented, while technological advancements and product innovations have further stimulated demand," Chen said.

"As a result, auto production and sales have maintained steady growth," he added.

The commercial vehicle market also showed signs of recovery in February, with production reaching 318,000 units and sales totaling 313,000 units. These figures represent month-on-month increases of 6.3 percent and 7.8 percent, and year-on-year growth of 36.6 percent and 25 percent, respectively.

By segment, truck production and sales registered strong year-on-year growth. Bus production increased significantly compared to the same period of 2024, while sales witnessed a slight decrease.

However, the bus segment experienced a decline in both production and sales compared to January.

The NEV market continued to expand rapidly. CAAM data showed that in February, NEV production and sales reached 888,000 and 892,000 units, respectively, reflecting year-on-year increases of 91.5 percent and 87.1 percent. NEVs accounted for 41.9 percent of total new vehicle sales during the month.

In the first two months of 2025, NEV production and sales totaled 1.9 million and 1.83 million units, respectively, both rising 52 percent year-on-year. By vehicle type, pure electric vehicle sales reached 1.12 million units, up 51.7 percent, while plug-in hybrid vehicle sales stood at 713,000 units, marking a 52.6 percent increase.

"Last year, the growth rate of plug-in hybrids significantly outpaced that of pure electric vehicles. However, in the first two months of this year, both have grown at a similar pace," Chen said.

He also added that the CAAM is closely monitoring whether this trend signals a potential shift in market dynamics between gasoline-powered and electric vehicles.

China's vehicle exports remained strong in the first two months of 2025, with 911,000 units shipped overseas, marking a 10.9 percent year-on-year increase.

Among them, NEV exports reached 282,000 units, up 54.5 percent. Notably, plug-in hybrid vehicle exports saw significantly faster growth than pure electric vehicles, with 96,000 units shipped — an increase of 180 percent year-on-year. Meanwhile, exports of gasoline-powered vehicles totaled 629,000 units, down 1.5 percent from same period of 2024.

At the corporate level, four automakers each exported more than 100,000 vehicles in the first two months, as the country's top exporters.

Chery led with 167,000 units, followed by BYD with 141,000, SAIC Motor with 122,000, and Changan with 110,000. Among them, BYD recorded the most significant growth, with exports surging 130 percent year-on-year.

Chen emphasized that the combined effect of supportive policies will reinforce the auto industry's steady growth, encourage innovation among enterprises, and drive high-quality development across the sector.