[SMM Hot Topic] The New Year Car Market Sees a Stable Start with New Energy Standing Out

【SMM Hot Topic】A Stable Start for the New Year in the Auto Market, NEVs Shine Brightly

SMMcompiled data released by the China Association of Automobile Manufacturers (CAAM), showing that in January 2025, China's automobile production and sales reached 2.45 million and 2.423 million units, respectively, down 27.2% and 30.5% MoM. Production was up 1.66% YoY from 2.41 million units last year, while sales saw a slight decline of 0.66% YoY from 2.439 million units last year. Data Source: CAAM, SMM Data Source: CAAM, SMM It is evident that the auto market demonstrated stable development despite the backdrop of the Chinese New Year holiday. Although the number of effective working days decreased, the "trade-in" policy and the boost from the holiday economy enabled the auto industry to achieve a stable start, laying a solid foundation for growth throughout the year.

Among them,

NEVs continued to perform strongly at the beginning of the year, with production and sales reaching 1.015 million and 944,000 units, respectively, down 33.7% and 40.9% MoM but up 29% and 29.4% YoY. NEV sales accounted for 38.96% of total new car sales. Among major NEV categories, except for a sharp decline in fuel cell vehicle production and sales, the other two categories saw double-digit growth. Pure electric and plug-in hybrid models sold 574,000 and 370,000 units, respectively, up 29.1% and 30% YoY. Data Source: CAAM, SMM 

In the January 2025 NEV manufacturers' retail sales rankings, only six automakers among the top ten—

Geely, SAIC-GM-Wuling, Harmony Intelligent Mobility Alliance (HIMA), XPeng Motors, Chery, and Leap Motor—achieved YoY growth. XPeng Motors and Chery saw significant YoY growth of 260.9% and 194.1%, respectively. Meanwhile, BYD, Changan, Tesla China, and Li Auto experienced YoY declines, with Tesla China showing the steepest drop at 15.5%. This was partly due to Tesla China's suspension of some new Model Y

production lines during the Chinese New Year for upgrades, which reduced delivery volumes. Additionally, intensified competition in the NEV market, with new entrants like Xiaomi, heightened competition in the

Model 3

segment. Data Source: CPCA, SMM  Overall, January's automobile sales managed to maintain some growth during the Chinese New Year month, thanks to multiple factors. Policy-wise, the Central Economic Work Conference systematically planned the 2025 economic agenda, with a more proactive policy tone providing momentum for sustained economic recovery and boosting market confidence and expectations. The first State Council executive meeting after the holiday emphasized the importance of boosting consumption, and relevant national ministries actively implemented the central government's directives. Policies like "trade-in" continued to show effectiveness, stimulating automobile consumption. Market-wise, the consumer market saw robust supply and demand during the Chinese New Year, partially releasing consumer demand for car purchases. At the same time, automakers actively responded, with several automakers unveiling new popular car models and showcasing technological innovations, offering consumers more choices.