Home / Metal News / H1 auto market results are out: Both production and sales of cars exceeded 15 million units, and power battery installations approached 300 Gwh!

H1 auto market results are out: Both production and sales of cars exceeded 15 million units, and power battery installations approached 300 Gwh!

iconJul 11, 2025 13:53
Source:SMM

Around July 10, 2025, the CPCA and CAAM successively released data on China's automotive industry and passenger vehicle market for June 2025. CAAM stated that in H1, the auto market maintained positive momentum, with multiple economic indicators achieving double-digit growth YoY. Specifically, driven by the sustained effects of the trade-in policy, domestic demand significantly improved, playing a crucial supporting role in overall auto growth. NEVs continued their rapid expansion... SMM compiled H1 data on the auto market and power battery sector for reference.


Auto Sector

CAAM: June Auto Production and Sales Up Both YoY and MoM, H1 Volumes Exceed 15 Million Units

In June, auto production and sales reached 2.794 million and 2.904 million units respectively, up 5.5% and 8.1% MoM, and 11.4% and 13.8% YoY. January-June, production and sales totaled 15.621 million and 15.653 million units (up 12.5% and 11.4% YoY), with production growth narrowing 0.2 percentage points from Jan-May while sales growth expanded 0.5 points.

CAAM: June NEV Production/Sales Surge Over 40% YoY, H1 Volumes Approach 7 Million!

June NEV production and sales hit 1.268 million and 1.329 million units, rising 26.4% and 26.7% YoY, accounting for 45.8% of total new auto sales. H1 figures reached 6.968 million and 6.937 million units (up 41.4% and 40.3% YoY), representing 44.3% of new auto sales.

CAAM: June Auto Exports Jump 22.2% YoY, H1 Total Tops 3 Million

CAAM data shows China exported 592,000 vehicles in June, up 7.4% MoM and 22.2% YoY.H1 exports totaled 3.083 million units (up 10.4% YoY).

June traditional fuel vehicle exports were 387,000 units (up 14.4% MoM, down 2.8% YoY), while NEV exports reached 205,000 units (down 3.6% MoM, up 140% YoY). H1 traditional fuel vehicle exports stood at 2.023 million (down 7.5% YoY), with NEV exports at 1.06 million (up 75.2% YoY).

The Passenger Vehicle Market Information Committee (CPCA) recently released an analysis of the passenger vehicle market in June 2025. According to CPCA data, nationwide retail sales of passenger vehicles reached 2.084 million units in June 2025, up 18.1% YoY and 7.6% MoM. Cumulative retail sales for the year reached 10.901 million units, up 10.8% YoY. In previous years, the domestic auto market retail sales followed a pattern of "low in the first half and high in the second half." However, this June, retail sales increased by 7% compared to the peak of 1.94 million units in June 2022, showing a strong growth trend.

In terms of NEVs, retail sales of passenger NEVs reached 1.111 million units in June, up 29.7% YoY and 8.2% MoM. Cumulative retail sales from January to June reached 5.468 million units, up 33.3% YoY.

Regarding exports, the CPCA stated that with the emergence of China's NEV scale advantages and market expansion needs, more and more NEV brand products made in China are going global, with their recognition overseas continuing to rise. Among them, plug-in hybrid vehicles accounted for 33% of NEV exports (23% in the same period last year). Despite recent interference from some external countries, the export of independently developed plug-in hybrid vehicles to developing countries has grown rapidly, with a bright future. In June, 198,000 passenger NEVs were exported, up 116.6% YoY and down 1.0% MoM. They accounted for 41.1% of passenger vehicle exports, an increase of 17.6 percentage points compared to the same period last year. Among them, battery electric vehicles (BEVs) accounted for 63% of NEV exports (76% in the same period last year), and A00+A0-class BEVs, as the core focus, accounted for 49% of NEV exports (31% in the same period last year).

Regarding the passenger vehicle market in June, the CPCA evaluated that driven by the "program of large-scale equipment upgrades and consumer goods trade-ins" policy, the auto market's popularity continued to strengthen after the Chinese New Year. Under the promotion of the national consumption-boosting policy, many provinces and cities have introduced and gradually implemented corresponding local consumption-boosting policies. Coupled with the comprehensive launch of offline activities such as auto shows, the auto market performed well in June. According to Ministry of Commerce data, as of June 31st, the cumulative number of applications for car trade-in subsidies reached 4.12 million. Based on monthly rhythm calculations, the number of trade-in applications in June reached 1.23 million units, up 13% from 1.09 million units in May. Relative to the retail scale of private passenger vehicles in June, approximately 70% of private car buyers benefited from the trade-in policy, with the proportion of first-time private car buyers dropping to around 30%. Consumption upgrades, including trade-ins and additional purchases, have become the absolute mainstream of car-buying consumption. With the continuous growth of trade-in demand, the characteristic of a stronger-than-usual off-season is evident. Retail sales in June approached the high level of March, reflecting the significant contribution of the trade-in policy to domestic retail consumption.

The Passenger Vehicle Branch of CPCA stated that the characteristics of the passenger vehicle market in June 2025 are as follows: 1. Retail sales, wholesale sales, and production of passenger vehicles by producers all reached record highs for the month of June, with exports also hitting a new high for any month in previous years; 2. From January to May 2025, domestic retail sales of passenger vehicles achieved a positive growth of 9%, with the growth rate reaching 18% in June, a net increase of 320,000 units YoY, raising the cumulative growth rate by 2 percentage points and achieving an unexpected growth of 10.8% from January to June 2025; 3. This year, the direct price war of price reductions has appeared somewhat mild, but hidden concessions such as year-model upgrades and adjustments to owner benefits have emerged one after another. In June, new energy vehicle sales promotions decreased by 0.8% MoM, reaching 10.2%; 4. In June, the wholesale share of self-owned brand passenger vehicles was 67.1% (up 2.2% YoY), and the domestic retail share was 64.2% (up 5.6% YoY), with a significant improvement in the performance of joint ventures; 5. With the deepening of anti-cut-throat competition measures, the overall inventory of passenger vehicle producers decreased by 150,000 units in June (down 20,000 units YoY), and the inventory of new energy vehicles also decreased; 6. In June, the domestic retail penetration rate of new energy vehicles rose to 53.3%, showing strong growth of new energy vehicles under the background of inclusive policies such as scrappage and renewal, trade-in policies, and exemption from purchase tax for new energy vehicles; 7. From January to June 2025, exports of self-owned fuel passenger vehicles decreased by 13% to 1.29 million units, while exports of self-owned new energy vehicles increased by 109% to 810,000 units, accounting for 38.6% of self-owned exports. Although self-owned brands actively destocked in Russia at the beginning of the year, leading to a decrease in exports to Russia, their market share in Russia still remained above 55%. Considering the current situation of Russia's automotive industry, Chinese automotive exports to Russia are expected to recover to a certain level.


In terms of power batteries

, the cumulative sales of power batteries and other batteries from January to June 2025 were 659 GWh, with a cumulative YoY growth of 63.3%

. In June, the sales of power batteries and other batteries in China were 131.4 GWh, up 6.3% MoM and 41.7% YoY. Among them, the sales of power batteries were 94.1 GWh, accounting for 71.6% of the total sales, up 7.6% MoM and 34.9% YoY; the sales of other batteries were 37.4 GWh, accounting for 28.4% of the total sales, up 3.4% MoM and 62.5% YoY.

From January to June, the cumulative sales of power batteries and other batteries in China were 659 GWh, with a cumulative YoY growth of 63.3%. Among them, the cumulative sales of power batteries were 485.5 GWh, accounting for 73.7% of the total sales, with a cumulative YoY growth of 51.6%; the cumulative sales of other batteries were 173.5 GWh, accounting for 26.3% of the total sales, with a cumulative YoY growth of 108.5%.

China's power battery installations reached 299.6GWh in January-June, up 47.3% YoY.

In June, power battery installations totaled 58.2GWh,up 1.9% MoM and 35.9% YoY. Among them, ternary battery installations were 10.7GWh, accounting for 18.4% of total installations, up 2.0% MoM but down 3.4% YoY. LFP battery installations reached 47.4GWh, representing 81.5% of total installations, up 1.9% MoM and 49.7% YoY.

From January to June, China's cumulative power battery installations amounted to 299.6GWh,up 47.3% YoY. Ternary battery cumulative installations were 55.5GWh, accounting for 18.5% of total installations, down 10.8% YoY, while LFP battery cumulative installations reached 244.0GWh, representing 81.4% of total installations, up 73.0% YoY.


Leap Motor Tops New Energy Vehicle Delivery Rankings for Four Consecutive Months, XPeng Motors Exceeds Half of Annual Sales Target!

The chart below shows the delivery performance of new energy vehicle makers in June, compiled by Cailian Press:

image

Data shows Leap Motor delivered 48,006 units in June, up 138.65% YoY, setting a new record. Its H1 cumulative deliveries reached 221,664 units, ranking first among new energy vehicle makers for four consecutive months. Its full-year sales target was 500,000-600,000 units, with H1 completion rate at around 44.33%.

Li Auto delivered 36,279 units in June, down 24.06% YoY, with H1 cumulative deliveries at 203,758 units, up 7.91% YoY. On June 27, Li Auto updated its Q2 2025 delivery guidance, citing factors such as reduced local subsidies, intensive new model launches, and intensified wait-and-see sentiment due to volume discounts. The high-end vehicle market (above 200,000 yuan) slowed, with luxury brand sales declining significantly YoY. Li Auto expects Q2 deliveries at 108,000 units. Media reports indicate Li Auto internally adjusted its full-year production schedule target to 640,000 units, implying an H1 completion rate of around 31.84%.

XPeng Motors, ranking third in H1 cumulative deliveries, delivered 34,611 units in June, up 224.44% YoY. Q2 cumulative deliveries reached 103,181 units, setting a new quarterly record and meeting guidance. H1 cumulative deliveries totaled 197,189 units, surpassing its full-year 2024 performance. Previously, XPeng Motors set a sales target of over 380,000 units for 2025, and currently, it has achieved 51.89% of this target.

Regarding BYD, the "top EV automaker," it sold a total of 382,585 vehicles in June, up 11.98% YoY. In the first half of this year, BYD's cumulative sales reached 2,145,954 units, up 33.04% YoY. Previously, BYD set a sales target of 5.5 million units, and currently, it has achieved 39.02% of this target. As of now, BYD's cumulative new energy vehicle sales have exceeded 12.7 million units. Considering that sales usually pick up in the second half of the year, the market expects that BYD's annual sales target of 5.5 million units is still very promising.

Looking ahead to July, the Passenger Car Association Branch stated that there will be 23 working days in July 2025, providing relatively ample time for production and sales. With the structural differentiation in the growth of the auto market, some enterprises have ample capacity for traditional internal combustion engine vehicles, and the characteristics of destocking under the pressure of a shrinking internal combustion engine vehicle market are evident. It is expected that the time for summer high-temperature holidays will be relatively long, and the auto market will enter a period of adjustment in July. Due to the abnormal and early northward jump of the subtropical high-pressure system in China this year, the plum rain belt in south China has moved abnormally northward, the weather in the north is hot, and sudden thunderstorms have increased. Under the trend of climate warming, there is a strong rigid demand for vehicle use in summer. As the trade-in policy was launched in July 2024, the sales base for July this year will be relatively high. Given the high production enthusiasm of producers at the beginning of this year, the industry did not exhibit the destocking characteristics seen in previous years. By the end of May, inventory had reached 3.45 million units, with 57 days of inventories, and both internal combustion engine vehicles and new energy vehicles faced significant destocking pressure. Therefore, production and sales in July will still exhibit a relatively rapid growth state with a gradual slowdown.

However, it should also be noted that with the continuous deepening of anti-cut-throat competition efforts, automakers are striving to maintain the relative stability of market prices, and the production rhythm will show a further steady trend. Due to the decline in the interest rate spread between bank deposits and loans, high-interest and high-rebate auto loan policies have been controlled. The original interest rebates that banks provided to dealers will be partially subsidized into vehicle prices. After the significant reduction in auto loan rebates, the profitability pressure on dealers has further increased, indirectly leading to deeper conflicts between producers and dealers. With inventory at a relatively high level, the sales growth of producers has slowed down.


The MIIT has stepped in to ensure that automakers fulfill their payment term commitments! Automakers can report overdue payments online!

It is worth mentioning that in June, the "Regulation on Ensuring Payment of Accounts to Small and Medium-sized Enterprises" came into effect, which clearly stipulates that large enterprises shall not exceed 60 days for paying engineering payments. At the same time, they shall not force small and medium-sized enterprises to accept non-cash payment methods such as commercial bills to extend the payment period in disguise. Subsequently, dozens of automakers, including FAW Group, Dongfeng Motor, GAC Group, Seres, BYD, Great Wall Motor, Xiaomi Motors, XPeng Motors, Chery Group, Leap Motor, BAIC Group, Li Auto, NIO, etc., have issued announcements stating that "they will unify the payment terms for suppliers to within 60 days."

This situation is undoubtedly a significant positive for automotive supply chain enterprises, once sparking market euphoria. However, concerns also arose about enterprises potentially failing to fulfill commitments as scheduled. In response, on July 9, the Ministry of Industry and Information Technology (MIIT) launched the "Online Feedback Window for Key Automakers' Accounts Payable Commitments (Suggestions)" ([https://sme-dj.miit.gov.cn/car) under the "National Complaint Platform for SME Payment Defaults." This platform aims to receive feedback (suggestions) from SMEs regarding key automakers' non-compliance with payment cycle commitments and inadequate enforcement of the "Regulations on Safeguarding Payments to Small and Medium-sized Enterprises," facilitating coordinated resolution efforts. Among the prioritized issues are automakers' failure to honor 60-day payment term commitments and contractual payment periods exceeding 60 days—key concerns for supply chain enterprises.

The launch of this MIIT feedback window operationalizes the "Regulations on Safeguarding Payments to Small and Medium-sized Enterprises," enforces payment term commitments, and benefits SMEs. According to China Battery Network, MIIT will next guide industry associations to formulate automotive sector settlement payment standards, promote model contracts, further regulate automakers' supplier payment processes, foster a collaborative "automaker-parts" ecosystem, and promote sustainable automotive industry development.


Price wars, auto tariffs, and intelligent driving "rebranding" kept the H1 automotive market abuzz!

With H1 2025 concluded, the automotive market witnessed frequent major developments. National-level policies against cut-throat competition repeatedly targeted automotive, PV, and e-commerce sectors, with relevant enterprises frequently invited by authorities to jointly advance anti-internal competition efforts. Terms like "price wars," "anti-internal competition," and "tariffs" became 2025 H1 industry buzzwords. For a detailed review of H1 automotive market highlights, see SMM's article "Price wars, auto tariffs, and intelligent driving "rebranding" kept the H1 automotive market abuzz! [SMM Hot Topic]."

CAAM evaluated the H1 automotive market as follows: Since the beginning of the year, the state has implemented proactive macro policies and accelerated measures to stabilize employment, stabilize the economy, and promote high-quality development, maintaining generally stable economic operations. The automotive market sustained positive momentum in H1, with multiple economic indicators achieving double-digit YoY growth. Specifically, the trade-in policy continued to drive noticeable domestic demand improvements, providing critical support for overall automotive growth; NEVs maintained rapid growth, continuously driving industrial upgrading; exports remained on an upward trajectory, particularly NEV exports; and Chinese brands maintained high sales market share.

Looking ahead to H2, the China Association of Automobile Manufacturers (CAAM) stated that the "program of large-scale equipment upgrades and consumer goods trade-ins" will continue to be implemented in an orderly manner. The preferential tax exemption for new energy vehicles is facing a phase-out, and coupled with the continuous enrichment of new product supply by enterprises, this will help boost the growth of automobile consumption. However, it should also be noted that the complexity, severity, and uncertainty of the current external environment have increased. It is necessary to closely monitor the suspension of automobile trade-in subsidies and other trade-in activities in some regions. Competition in the industry remains fierce, with overall profitability continuing to be under pressure, and the stable operation of the industry still facing challenges. It is necessary to stabilize policy expectations, regulate market competition order, strengthen industry self-discipline, and enhance policy guidance and supervision to support the healthy and stable operation of the industry.

For queries, please contact Lemon Zhao at lemonzhao@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn