China's passenger vehicle market recorded retail sales of 1.826 million units in July 2025, up 6.3% year-on-year but down 12.4% from June, according to according to data from the China Passenger Car Association ("CPCA"). Cumulative PV retail sales for the first seven months reached 12.728 million units, a 10.1% increase over the same period last year.
Growth momentum, which had steadily risen from 1.2% in January–February to 10.8% by June, slowed in July due to a high comparison base. Even so, retail sales in July were still 3% higher than the previous record set in July 2023, maintaining a solid upward trajectory.
For clarity, the PVs mentioned here are all locally produced on the Chinese mainland.
A shift away from aggressive price-cutting has helped stabilize the market, with fewer promotions and steadier pricing. According to the CPCA's data, in July, 17 models saw official price reductions, compared with 23 in the same month last year and the same number in 2023, reflecting a calmer competitive environment. Discount intensity for new energy vehicles (NEVs) stood at a relatively high 10.2%—2.1 percentage points above last year but unchanged from June—while internal combustion engine (ICE) vehicle models maintained an average discount of 23.4%, slightly higher than both the prior month and year.
Despite mounting external pressures and domestic challenges, strong countercyclical measures have supported both the economy and the auto sector. China's GDP grew 5.3% year-on-year in the first half to 66 trillion yuan, slightly beating expectations and fueling robust car sales. Expanded government subsidies under the "Two New" policy (China's stimulus package, which includes incentives for large-scale equipment renewals and consumer goods trade-ins) provided a notable first-half boost. However, the pause before the release of the third subsidy tranche, coupled with a tightening of local high-interest rebate programs, has reduced the scale of price offsets for buyers. This raised perceived purchase costs, dampening sentiment and triggering a wait-and-see approach, while dealer inventories came under pressure. As a result, July sales growth slowed to around 6% from an average of 15% between March and June.
China's self-owned brands sold 1.21 million PVs in July, up 14% year-on-year but down 10% month-on-month, securing a 65.9% market share—4 points higher than a year ago. For the Jan.-Jul. period, their share stood at 64%, up 6.9 points year-on-year, bolstered by gains in both NEVs and exports. Legacy automakers such as Geely, Chery, Changan, and Great Wall Motor ("GWM") have posted notable market share growth thanks to successful transformation strategies.
Mainstream joint ventures sold 450,000 vehicles in July, edging up 1% from last year but down 12% from June. German brands held a 14.5% share, down three percentage points year-on-year, while Japanese brands remained flat over a year earlier at 12.9%. U.S. marques slipped 1.1 percentage points to 4.7%, whereas Korean and other Western European brands posted small gains.
Premium PV retail sales fell sharply to 170,000 units, down 20% year-on-year and 29% from June, with market share shrinking to 9.3%. The premium segment is facing even larger pressure than mainstream joint ventures.
China's PV wholesale shipments hit a July record of 2.221 million units, up 13% year-on-year but down 10.8% from June. Year-to-date wholesales rose 12.4% from a year ago to 15.503 million units. Growth in wholesales outpaced retail by 6.7 percentage points in July due to sales channel adjustments. China's indigenous brands shipped 1.58 million units, up 20% year-on-year, while mainstream joint ventures sold 440,000 units (+7% YoY) and premium brands 200,000 units (–16% YoY).
The wholesale landscape is evolving, with mid-tier players such as Geely, Dongfeng Nissan, XPENG, Xiaomi EV, and Leapmotor posting strong month-on-month performance. Five manufacturers exceeded 100,000 units in July, matching June and last year, and together captured 47% of the market—up from 46% in June and 40% a year ago.
China's PV production reached 2.229 million units in July, up 12.1% year-on-year but down 7.1% from June. Cumulative output rose 13.2% from the year-ago period to 15.458 million units, exceeding the July 2022 peak by 70,000 units.
In July, premium PV production fell 24% from the previous year, joint venture output climbed 11% over a year ago, and China's self-owned brand output jumped 19% year-on-year.
Customs data shows China exported 694,000 vehicles (including CKD kits) in July, worth US$11.837 billion. For January–July, exports reached 4.17 million units (+19.7%) and US$65.1 billion (+9.7%). PV exports totaled 475,000 units (including CKD kits) in July, up 25% year-on-year but down 1% month-on-month, with NEVs making up 44.7% of the total—19 percentage points higher than a year ago. China's self-owned brands exported 415,000 units (+34% YoY), while joint-venture-made and premium PV's combined exports fell 15% year on year to 60,000 units.
