April Passenger Vehicle Sales Hit a Decade-High Growth Rate Driven by Nearly 50% Contribution from New Energy Vehicles

In April, the retail sales growth rate of passenger cars reached its highest point for the same period in nearly a decade. The contribution of new energy vehicles (NEVs) approached 50%, while the number of discounted models significantly decreased.

On May 11, the China Passenger Car Association (CPCA) released data indicating that from January to April, the cumulative retail sales of passenger cars in the country amounted to 6.872 million units, reflecting a year-on-year growth of 7.9%. In April alone, retail sales reached 1.755 million units, marking a year-on-year increase of 14.5% and the highest growth rate for this month in nearly ten years. However, this figure represented a month-on-month decline of 9.4%.

According to CPCA Secretary General Cui Dongshu, this impressive growth is attributed to the early implementation of the “trade-in” policy and the prompt disbursement of subsidies. Additionally, there has been a notable increase in the market share of domestic brands, especially in the NEV and export markets.

In April, the retail sales volume of domestic brand passenger cars reached 1.15 million units, a 31% increase year-on-year, with a retail market share of 65.5%, up 8 percentage points from the previous year. In contrast, sales of mainstream joint venture and luxury brands saw varying degrees of decline. Luxury passenger car sales amounted to 170,000 units, down 18% year-on-year, with a market share of 9.5%, down 3.7 percentage points year-on-year. Mainstream joint venture brands recorded retail sales of 440,000 units, a 3% year-on-year decline and an 8% drop compared to the previous month.

The most significant decline was observed in German brands, with their retail market share dropping to 15.6%, a decrease of 3.4 percentage points year-on-year. Japanese brands held a 12.2% share, down 2.7 percentage points, while American brands accounted for 4.8%, down 1.1 percentage points.

Cui Dongshu commented on the sustained high growth of domestic brands, stating, “This is primarily due to significant gains in the NEV market and exports. Major automakers, including BYD, Geely, Chery, and Changan, have shown remarkable improvements in their market shares.”

April data from several domestic automakers highlights BYD’s NEV sales exceeding 380,000 units, up 21.3% year-on-year, making it the top-selling domestic brand for the month. BYD’s passenger cars and pickups sold approximately 77,100 units overseas, reflecting an impressive year-on-year growth of 91%.

Geely followed closely with total sales around 234,100 units, a year-on-year increase of 53%. Of this, NEV sales were approximately 125,600 units, soaring 144% year-on-year and accounting for over 53% of Geely’s total sales.

Changan ranked third with sales of about 206,100 units, up 5.2% year-on-year, while its NEV retail sales reached approximately 71,300 units, a 46.7% increase. Changan’s total retail sales for Chinese brands in April were around 171,200 units, up 8.3%.

Chery’s April sales totaled about 200,700 units, up 10.3%, placing it fourth, just shy of Changan by fewer than 6,000 units. Its NEV sales reached approximately 61,200 units, up 85.5%, while exports amounted to 87,700 units, maintaining its position as the leading exporter among Chinese automakers.

All four automakers have excelled in NEV sales and exports. Cui Dongshu noted, “As the advantages of Chinese NEVs become more evident and market expansion demands grow, the recognition of Chinese-made NEV brands is continuously increasing abroad.”

In April, China’s total passenger car exports (including complete vehicles and CKD) reached 423,000 units, showing a year-on-year decline of 2% but a month-on-month increase of 7%. Notably, NEV exports accounted for 44.6% of total exports, up 14 percentage points from the same period last year. Domestic brand exports reached 340,000 units, a slight 0.1% increase, while joint venture and luxury brand exports totaled only 80,000 units, down 10%.

Cui emphasized the importance for Chinese automakers to focus on electrification and the development of the entire industry chain to ensure that Chinese electric vehicles sustainably enter the global market.

In April, the domestic NEV market saw retail sales reach 905,000 units, a year-on-year increase of 33.9%, with a retail penetration rate of 51.5%, up 7 percentage points from last year. The penetration rate for domestic brand NEVs stood at 72.8%, while luxury brand NEVs reached 23.5%. In stark contrast, mainstream joint venture brands had a NEV penetration rate of only 6.8%.

From January to April, cumulative retail sales of domestic NEVs reached 3.324 million units, representing a year-on-year growth of 35.7% and contributing more than 48% to overall passenger car sales.

Cui expressed that the current state of NEV development in China reflects a competitive landscape where smaller companies are progressively growing, with some increasing their sales from just a few thousand units per month to thirty to fifty thousand units. He stated, “It’s not just the strong getting stronger; it’s a battle among various players in the NEV market.”

Data from CPCA shows that in April, 16 brands sold over 20,000 NEVs, with the top ten brands being BYD (268,800 units), Geely (118,800 units), Changan (60,600 units), SAIC-GM-Wuling (51,800 units), Chery (37,000 units), Li Auto (33,900 units), Xpeng (31,300 units), Tesla China (28,700 units), Xiaomi Auto (28,600 units), and Leap Motor (28,300 units).

The data indicates a strengthening performance among major domestic automakers in the NEV sector, with brands like BYD, Geely, Changan, and SAIC-GM-Wuling showing robust retail numbers. New entrants such as Li Auto, Xpeng, Leap Motor, and Xiaomi Auto have also secured positions within the top ten.

CPCA reported that in April, the retail share of new forces in the automotive market was 19.4%, a year-on-year increase of 3.6 percentage points. Notably, new entrants like Xpeng, Xiaomi Auto, and Leap Motor contributed to an increase of 5.2 percentage points to the market share. Traditional domestic automakers’ independent NEV brands, such as Avita, Deep Blue, Aion, and Lantu, also performed well with a market share of 12.6%, up 0.8 percentage points.

Cui noted that the NEV sector is presenting more opportunities for growth, facilitating rapid sales increases for companies like “Weilai,” Xiaomi Auto, and others. “Currently, it’s not just about the leading companies getting stronger; it’s about who has strong innovative capabilities and control over their supply chain,” he concluded.

Despite the rapid growth in the first four months of 2025, the price competition in the automotive market has become more moderate. According to CPCA, there were 65 models that saw price reductions from January to April, a decrease of 56 models compared to the same period last year. The number of discounted models in April alone was significantly lower than in previous years, reflecting a cooling trend in the “price war.”

In the automotive market, competition is now more focused on product features and service experiences, with automakers striving to enhance their value propositions through technological innovations. For instance, on May 8, Li Auto hosted an event to unveil the upgraded L series, maintaining its pricing while enhancing key technologies like assisted driving and smart cockpit features.

Earlier this year, BYD also emphasized “added features without added costs” by launching new models equipped with the “Heavenly Eye” smart assistant system. BYD Chairman Wang Chuanfu stated that the company would invest 100 billion yuan in AI and automotive technology to achieve comprehensive upgrades in vehicle intelligence.

Automakers are also investing in advancements in various areas, including non-crystalline motors, high-efficiency batteries, 5C charging, and charging infrastructure to enhance the consumer experience and build customer loyalty.

For example, NIO is enticing consumers with promotions like five years of free battery swapping. On May 10, NIO announced the pre-sale of four newly upgraded models—ES6, EC6, ET5, and ET5T—along with the launch of a five-year free battery swap privilege.

Cui believes that competition among automakers will intensify in the second half of the year as they strive to meet their annual sales targets, but it will not result in low-level “internal competition.” He predicts that manufacturers will adopt diverse strategies to enhance their product competitiveness and capture more market share.