In the First 8 Months, China's Automobile Production and Sales Both Exceeded 20 Million Units for the First Time, with September Expected to See Even Higher Activity? [SMM Special Report]

In mid-September 2025, the CPCA and CAAM successively released data on the automotive industry and passenger vehicle market for August 2025. CAAM stated that from January to August this year, China's auto production and sales both exceeded 20 million units for the first time. Among them, NEVs and auto exports continued to show good momentum, while the traditional fuel vehicle market stabilized....... SMM compiled relevant data on the auto market and power battery market in August for readers to review.

Automotive Sector

CAAM: China's Auto Production and Sales Both Exceeded 20 Million Units from January to August, Up 12.7% and 12.6% YoY, Respectively

According to CAAM data, in August, auto production and sales reached 2.815 million and 2.857 million units, up 8.7% and 10.1% MoM, respectively,and up 13% and 16.4% YoY, respectively. From January to August, auto production and sales reached 21.051 million and 21.128 million units,up 12.7% and 12.6% YoY, respectively, with production growth flat from January to July and sales growth expanding by 0.6 percentage points. This also marks thefirst time China's auto production and sales both exceeded 20 million units.

CAAM: NEV Production and Sales Both Exceeded 9.6 Million Units from January to August, Up Over 35% YoY

In August, NEV production and sales reached 1.391 million and 1.395 million units,up 27.4% and 26.8% YoY, respectively, with NEV sales accounting for 48.8% of total new auto sales.

From January to August, NEV production and sales reached 9.625 million and 9.62 million units,up 37.3% and 36.7% YoY, respectively, with NEV sales accounting for 45.5% of total new auto sales.

CAAM: NEV Exports Doubled in August, Up 87.3% YoY from January to August

In August, auto exports reached 611,000 units, up 6.2% MoM,and up 19.6% YoY. From January to August, auto exports reached 4.292 million units,up 13.7% YoY.

In August, NEV exports reached 224,000 units, down 0.6% MoM,and doubled YoY. Among them, passenger NEV exports reached 220,000 units, down 0.2% MoM and up 1.1 times YoY; commercial NEV exports reached 4,000 units, down 15.8% MoM and up 9.5% YoY.

From January to August, NEV exports reached 1.532 million units,up 87.3% YoY. Among them, passenger NEV exports reached 1.473 million units, up 85.1% YoY; new energy commercial vehicle exports reached 58,000 units, up 1.7 times YoY.

The Passenger Car Association also released the passenger car market situation for August 2025. According to data from the Passenger Car Association, retail sales in the national passenger car market in August reached 1.995 million units,up 4.6% YoY, up 8.2% MoM; cumulative retail sales from the beginning of the year reached 14.741 million units,up 9.5% YoY. It is reported that this data not only set a new historical high for retail sales in August but also increased by 3.7% compared to the previous historical high of 1.92 million units in August 2023.

In terms of NEVs, retail sales in the national passenger car market in August reached 1.995 million units,up 4.6% YoY, up 8.2% MoM; cumulative retail sales from the beginning of the year reached 14.741 million units,up 9.5% YoY.

Regarding exports, the Passenger Car Association stated that with the scale advantages and market expansion demands of China's NEVs, Chinese-made new energy brand products are increasingly going global, with continuously growing recognition overseas. Among them, plug-in hybrids accounted for 31.7% of NEV exports (19.5% in the same period last year). Although recently affected by some external disruptions, the export growth momentum of domestic plug-in hybrids to developing countries is rapid, with bright prospects. In August, passenger NEV exports reached 204,000 units,up 102.7% YoY,down 6.5% MoM. They accounted for 40.9% of passenger car exports, an increase of 16.6 percentage points compared to the same period last year; among them, pure electric vehicles accounted for 66% of NEV exports (80.4% in the same period last year), with A00+A0 class pure electric vehicles, as the core focus, accounting for 38% of pure electric exports (23% in the same period last year).

Regarding the passenger car market in August, the Passenger Car Association commented that the cumulative retail growth rate of the domestic car market this year continued to rise from 1.2% in January-February to 11% in January-June, with July-August showing a deceleration characteristic due to a high base, consistent with the "low start, high middle, flat end" trend predicted at the beginning of the year. Retail sales in August this year set a new historical high, increasing by 3.7% compared to the previous historical high of 1.92 million units in August 2023, showing a gradually moderating growth trend.

Cui Dongshu, Secretary General of the Passenger Car Association, analyzed, "In August, passenger car producer retail sales, exports, wholesale, and production all reached historical highs for the month, demonstrating a strong market recovery momentum." In particular, NEV exports broke the historical records for all previous months, becoming an important driving force for market growth.

CPCA believes the August 2025 passenger-vehicle market displayed the following characteristics: 1. Retail sales, exports, wholesale and production all set new August records; new-energy exports reached an all-time monthly high. 2. January-July domestic retail sales posted a 10% YoY cumulative gain; the January-August figure eased to 9.5%, with July and August each trimming the cumulative pace by one percentage point, foreshadowing a “low-early, mid-year peak, flat-late” profile. 3. Headline price cuts were milder, yet hidden incentives—annual-model feature upgrades, owner-benefit tweaks, the program of large-scale equipment upgrades and consumer goods trade-ins plus larger factory subsidies—proliferated; August new-energy sales promotions rose 10.7% MoM. 4. August wholesale BEVs surged 38.5% YoY, PHEVs 5.0% YoY, while EREVs fell 9.5% YoY; among new entrants, the BEV-to-EREV mix shifted from 56%:10.2% last year to 64%:7.7%. 5. As anti-involution deepened, overall industry inventory fell 90,000 units in August (160,000 a year earlier) and new-energy inventory dropped 50,000 units. 6. New-energy penetration in domestic retail reached 55.2% in August, supported by retirement-and-renewal, replacement demand and the continued purchase-tax exemption. 7. January-August independent-brand ICE exports totaled 1.8 million units, down 10% YoY; independent-brand new-energy exports hit 1.14 million units, up 123% YoY, accounting for 38.8% of independent exports.

Power Battery Segment

January-August 2025 China’s combined power and other battery sales reached 920.7 GWh, up 58.2% YoY.

August sales were 134.5 GWh, up 5.7% MoM and 45.6% YoY. Of this, power battery sales were 98.9 GWh (73.5% of the total), up 8.5% MoM and 44.4% YoY; other battery sales were 35.6 GWh (26.5%), down 1.4% MoM and up 49.0% YoY.

January-August cumulative sales were 920.7 GWh, up 58.2% YoY. Power battery cumulative sales were 675.5 GWh (73.4%), up 49.7% YoY; other battery cumulative sales were 245.2 GWh (26.6%), up 87.6% YoY.

January-August 2025 China’s power battery installations totaled 417.9 GWh, up 43.1% YoY.

August installations were 62.5 GWh, up 11.9% MoM and 32.4% YoY. Among them, ternary battery installations reached 10.9 GWh, accounting for 17.5% of total installations, down 0.1% MoM and down 10.0% YoY; LFP battery installations reached 51.6 GWh, accounting for 82.5% of total installations, up 14.8% MoM and up 47.3% YoY.

From January to August, China's cumulative power battery installations reached 417.9 GWh, up 43.1% YoY. Among them, cumulative ternary battery installations were 77.4 GWh, accounting for 18.5% of total installations, down 9.7% YoY; cumulative LFP battery installations were 340.5 GWh, accounting for 81.5% of total installations, up 65.1% YoY.