April Sees 33.9% Year-on-Year Growth in China’s New Energy Vehicle Retail Market, Reaching 905,000 Units

April Overview of the New Energy Passenger Vehicle Market

In April 2025, the national retail sales of new energy passenger vehicles reached 905,000 units, marking a 33.9% year-on-year increase. The overall passenger car market saw retail sales of 1.755 million units, a 14.5% increase compared to the previous year, but a 9.4% decrease month-on-month. Cumulatively, retail sales for the year have reached 6.872 million units, reflecting a 7.9% year-on-year growth.

Historically, the domestic car market has exhibited a pattern of “low in the beginning and high later” over the past few years. Retail sales in April 2025 were slightly below the peak of 1.81 million units recorded in April 2018, indicating that this April’s performance is among the highest for the month in history.

As the retail market continues to recover from the price war of 2024, April’s monthly share of total annual retail sales stood at only 6.7%, which is lower than the typical share of around 0.2% for April in normal years. Early implementation of the national trade-in policy and substantial subsidies contributed to good market growth at the beginning of the year, leading to a relatively mild price war. The year-on-year retail growth rate for April is the highest seen in almost a decade, reversing the low growth trend for this month in previous years and reducing the typical quarterly fluctuations in the automotive market.

Amidst significant external environmental changes, the core driver of domestic consumption growth is personal vehicle consumption. The contribution of automotive consumption and value-added in April was commendable. Numerous provinces and cities have introduced and gradually implemented corresponding consumption promotion policies under the national consumption incentive measures. Additionally, support from manufacturers, financial backing, and the full-scale launch of offline activities such as auto shows have positively influenced the market. The shift from the pre-Spring Festival boom in fuel vehicle consumption to a post-holiday surge in new energy vehicle (NEV) purchases has led to an increase in new energy market penetration, making NEVs the primary driver of recovery in the spring passenger vehicle market.

Characteristics of the Passenger Vehicle Market in April 2025:

1. The wholesale and production of passenger vehicles reached historical highs for the month.
2. From January to March 2025, domestic retail for passenger vehicles grew by 6%, with April showing a growth rate of 14.5%, resulting in a net increase of 220,000 units and a robust 7.9% growth for the first four months of 2025.
3. The recent price reduction trend has been relatively mild, with only 14 models experiencing price cuts in April, a significant decrease from 41 last April and 19 in 2023, indicating a cooling off in price reduction trends. Promotions for traditional fuel vehicles remained stable at 22.2%, reflecting a 0.1 percentage point increase over the previous month.
4. The wholesale market share of independent brands in April was 70.3%, with a domestic retail share of 65.5%, both reflecting an approximate 8 percentage point increase compared to last year.
5. From January to April 2025, overall manufacturer inventory remained stable, with an increase of 80,000 units in manufacturer inventory and 40,000 units in channel inventory, leading to a total inventory increase of 120,000 units. This contrasts sharply with a reduction of 410,000 units during the same period last year.
6. The domestic retail penetration rate of new energy vehicles rebounded to 51.5%, driven by policies such as vehicle scrappage, trade-in incentives, and exemptions from purchase tax for new energy vehicles.
7. In the first four months of 2025, exports of independent fuel passenger vehicles totaled 830,000, a 13% decline compared to 960,000 during the same period last year, while exports of independent new energy vehicles reached 480,000, an 86% increase, accounting for 37% of total independent exports.
8. The contribution of trade-in purchases continues to grow. As of April 24, 2.705 million vehicles have been traded in nationwide, an increase of 1.2 million from 1.5 million on March 24. Approximately 70% of private car buyers in April benefited from trade-in programs, while first-time buyers dropped to about 31%.

In April, retail sales for independent brands reached 1.15 million, reflecting a 31% year-on-year growth but a 5% decline month-on-month. The domestic retail share for independent brands stood at 65.5%, up 8 percentage points year-on-year. From January to April, the market share for independent brands was 64%, up 7.9 percentage points from last year, signifying strong growth in both the new energy and export markets.

In April, mainstream joint venture brands recorded retail sales of 440,000, reflecting a 3% year-on-year decline and an 8% month-on-month decline. German brands held a 15.6% retail share, down 3.4 percentage points year-on-year, while Japanese brands accounted for 12.2%, down 2.7 percentage points. American brands held a market retail share of 4.8%, down 1.1 percentage points.

The luxury car segment saw retail sales of 170,000 units, down 18% year-on-year and 32% month-on-month, with a retail share of 9.5%, a decrease of 3.7 percentage points.

Exports: According to data from the China Passenger Car Association, passenger vehicle exports (including complete vehicles and CKD) reached 423,000 in April, down 2% year-on-year but up 7% month-on-month. From January to April, total passenger vehicle exports reached 1.55 million, reflecting a 1% year-on-year increase. In April, new energy vehicles accounted for 44.6% of total exports, an increase of 14 percentage points compared to the same period last year.

April saw exports of independent brands reach 340,000, a slight increase of 0.1% year-on-year but a 1% decline month-on-month, while joint venture and luxury brand exports totaled 80,000, reflecting a 10% decrease year-on-year.

Production: In April, the production of passenger vehicles reached 2.23 million, a 11.2% year-on-year increase, but a 10.3% month-on-month decline. From January to April, total production reached 8.544 million, reflecting a 13.7% year-on-year increase. April’s production exceeded the historical high for the same month in 2024 by 220,000 units, contributing to local growth stability.

Production of luxury brands fell 19% year-on-year and 17% month-on-month, while joint venture brands saw a 4% year-on-year decline and a 20% month-on-month decline. In contrast, production of independent brands rose 23% year-on-year but fell 6% month-on-month.

Wholesale: April saw wholesale figures reach 2.19 million, a historical high for the month, marking a 10.7% year-on-year increase but a 9.2% month-on-month decline. From January to April, wholesales totaled 8.468 million, reflecting an 11.1% year-on-year increase. The strong retail performance resulted in a 3.8 percentage point

Independent automakers reported wholesales of 1.54 million, a 23% year-on-year increase but a 3% month-on-month decline. Mainstream joint venture brands’ wholesales dropped to 438,000, down 6% year-on-year and 21% month-on-month. Luxury vehicles experienced a wholesale figure of 211,000, down 20% year-on-year and 23% month-on-month.

The wholesale landscape for key passenger vehicle manufacturers continues to evolve, with signs of small enterprises gradually rising. Major automakers such as Geely, Chery, and Changan have demonstrated strong performance.

In April, only 3 manufacturers sold over 150,000 units (compared to 5 in March and 3 last year), accounting for 36% of the overall market share (down from 47% last month and 32% last year). Manufacturers with wholesale volumes between 50,000 and 150,000 units accounted for 30% of the total market share, while those selling 10,000 to 50,000 units also comprised 30%.

Inventory: Due to favorable production conditions in April, wholesales exceeded production by 40,000 units, while monthly domestic wholesales surpassed retail by 10,000 units. Overall, inventory in the domestic channels and manufacturer stocks increased by 50,000 units (up 40,000 units last year). In total, the industry saw an increase of 120,000 units in inventory from January to April this year, a significant change from a reduction of 410,000 units during the same period last year.

New Energy: In April, new energy passenger vehicle production reached 1.151 million, a 40.3% year-on-year increase but a 1.5% month-on-month decline. Cumulatively, production from January to April stood at 4.078 million, an increase of 44.5%. April’s wholesale sales of new energy passenger vehicles hit 1.133 million, a 40.2% year-on-year increase and a 0.3% month-on-month growth, with cumulative wholesales of 3.981 million, marking a 42.1% growth.

April’s retail sales of new energy passenger vehicles reached 905,000, a 33.9% year-on-year increase but down 8.7% month-on-month. Cumulatively, retail sales from January to April reached 3.324 million, reflecting a 35.7% increase. In April, exports of new energy passenger vehicles reached 189,000, marking a 44.2% year-on-year increase and a 31.6% month-on-month growth, with total exports from January to April reaching 590,000, a 26.7% increase.

1) Wholesale: In April, the penetration rate for new energy vehicle wholesales reached 51.7%, an increase of 11 percentage points compared to April 2024. The penetration rate for independent brand new energy vehicles was 66%, while luxury brands had 38%. In contrast, mainstream joint venture brands only achieved a penetration rate of 7%.

In April, wholesale sales of pure electric vehicles reached 719,000, reflecting a 49.2% year-on-year increase and a 1.5% month-on-month growth. Sales of narrowly defined plug-in hybrids hit 322,000, a 21.7% year-on-year increase but a 3.2% month-on-month decline, while extended-range vehicles reached 92,000, showing a 49.3% year-on-year increase and a 3.8% month-on-month growth. The wholesale structure for new energy vehicles in April comprised 63.5% pure electric, 28.4% narrowly defined plug-in hybrids, and 8.1% extended-range vehicles.

In April, wholesale sales of B-class electric vehicles reached 202,000, up 20% year-on-year but down 7% month-on-month, accounting for 28% of pure electric sales, a decrease of 7 percentage points from the previous year. The A00 and A0-class economical electric vehicle markets performed well, with A00-class wholesale sales reaching 151,000, a 94% year-on-year increase and a 10% month-on-month increase, accounting for 21% of pure electric sales, an increase of 5 percentage points from the previous year. A0-class sales reached 181,000, comprising 25% of pure electric sales, up 3 percentage points year-on-year. A-class electric vehicles reached 165,000, accounting for 23% of pure electric sales, reflecting a 0.1 percentage point increase year-on-year. The growth in economical electric vehicles is sustainable, and the widespread adoption of economical electric vehicles is crucial for driving market growth.

In April, 15 vehicle models exceeded wholesale sales of 20,000 units, down from 20 last month. Top-selling models included the BYD Song (84,088 units), Seagull (55,028), Wuling MINI (36,337), Geely Xingyuan (36,270), Model Y (33,960), Xiaomi SU7 (28,585), and others. Notably, new energy vehicles dominated the top nine passenger vehicle sales models.

2) Retail: In April, the retail penetration rate for new energy vehicles in the overall domestic passenger vehicle market was 51.5%, an increase of 7 percentage points year-on-year. Among independent brands, the penetration rate for new energy vehicles was 72.8%, while luxury vehicles had 23.5%. In mainstream joint venture brands, the penetration rate was only 6.8%.

In April, the retail share of new energy vehicles among independent brands was 73%, an increase of 0.4 percentage points year-on-year. In contrast, mainstream joint venture brands held a share of 3.4%, down 1.5 percentage points year-on-year. New force brands accounted for 19.4%, with brands like Xpeng, Leapmotor, and Xiaomi contributing to a year-on-year growth of 3.6 percentage points. Tesla’s share was 3.2%, down 1.5 percentage points.

3) Exports: In April, new energy passenger vehicle exports totaled 189,000, reflecting a 44.2% year-on-year increase and a 31.6% month-on-month growth, constituting 44.6% of all passenger vehicle exports, which is a 14 percentage point increase compared to the same period last year. Pure electric vehicles accounted for 65% of new energy exports, while A00 and A0 class pure electric vehicles made up 33% of new energy exports.

With the growing scale and market demand for Chinese new energy vehicles, recognition of Chinese manufacturing continues to rise overseas. In April, the leading exporters of new energy vehicles included BYD (72,405 units), Tesla China (29,728), Chery (21,323), and others. Many independent brands have also made significant strides in the export market.

In terms of overseas CKD exports, Haima’s CKD exports accounted for 100%, Great Wall’s 29%, and Jiangling’s 21%. The transition from complete vehicle exports to CKD exports and the establishment of localized production systems abroad have shown strong performance from companies like Haima, Great Wall, and BYD.

Monitoring the retail data of independent brand exports reveals that A0-class electric vehicles once accounted for nearly 50% of independent exports. Recent developments in the overseas market show that the demand for small electric vehicles remains strong, and the establishment of supportive fiscal policies is crucial for the sustainable international growth of Chinese electric vehicles.

4) Automakers: The overall performance of new energy passenger vehicle companies in April was strong, with BYD solidifying its leadership position. Independent traditional automakers like Geely and Chery have also shown robust performance in the narrow hybrid segment. The implementation of a multi-pronged strategy for new energy vehicles has led to a continued expansion of market presence, with 17 manufacturers achieving monthly wholesale sales exceeding 10,000 units, collectively accounting for 90.9% of the new energy vehicle market.

Brands surpassing 20,000 units in domestic retail for April included BYD (268,778), Geely (118,813), Changan (60,606), and others. The performance of mainstream independent brands has shown significant improvement, especially in the new energy sector.

5) New Forces: The new forces accounted for 19.4% of the retail market share in April, a year-on-year increase of 3.6 percentage points. The performance among new forces was varied, with contributions from brands such as Xpeng, Xiaomi, and Leapmotor. The independent new energy brands from traditional automakers have also shown strong market presence.

6) Conventional Hybrid: In April, wholesale sales of conventional hybrid passenger vehicles reached 69,400, a year-on-year increase of 6% but a month-on-month decline of 19%. Key manufacturers include FAW Toyota, GAC Toyota, and others, with an upward trend in sales for independent hybrid brands.

Outlook for the Passenger Car Market in May 2025: May 2025 will have 19 working days, two fewer than last May, and the upcoming Dragon Boat Festival on May 31 may affect stable growth in production and sales. The market is gradually recovering from the scrappage and renewal policy initiated in 2024, with relatively high baseline expectations for May.

Thanks to the national consumption promotion policies and corresponding measures taken by various provinces and cities, the auto show in May is expected to maintain an active market atmosphere. With an increasingly rich product offering from brands, the new launches at the Shanghai Auto Show will largely feature mid-to-high-end models from independent new force brands, while joint venture models will highlight attractive pricing for new energy vehicles. Thus, the growth in the May car market is expected to be relatively stable.

Despite the dramatic changes in the external environment and the unexpected pressure of increased tariffs, consumer sentiment may be affected as these factors gradually emerge in subsequent months. However, the existing policies promoting domestic demand will continue to play a crucial role, and the automotive market’s stability will likely reflect ongoing improvements in both domestic and overseas markets.

In April, China’s PMI for manufacturing was 49.0%, a decrease of 1.5 percentage points from the previous month, while Caixin’s PMI recorded 50.4, remaining within the expansion range but slightly lower than the previous month. The changes in the external economic environment continue to create uncertainties for the automotive market.

This year’s May Day holiday has seen an increase in road trips, with more consumers opting for personalized and cost-effective travel options such as self-driving and car rentals. The combination of electric vehicles and advanced driver assistance systems enhances the driving experience, and the gradually maturing habits of new energy vehicle users in utilizing charging infrastructure have further fueled consumer interest. This shift may help alleviate concerns among traditional fuel vehicle consumers about transitioning to electric vehicles.

China’s automotive exports to the U.S. remain minimal, especially as independent brands have no presence in the U.S. market, mitigating the impact of tariffs on domestically produced vehicles. Meanwhile, the share of independent brands in the Russian market remains high at over 55%, with minimal pressure on exports. However, the lack of new fuel vehicle models at the Shanghai Auto Show highlights potential risks for the sustainable development of China’s automotive strategy.

Automobile Industry Performance from January to March 2025: The automotive industry generated revenue of 2.4 trillion yuan, an 8% increase, while costs rose 9%, leading to a 6% decline in profits and a profit margin of 3.9%, which is further declining. The introduction of trade-in policies and increasing diversification of consumption scenarios have positively impacted related industries.

In the first quarter of 2025, the profits of large-scale industrial enterprises turned positive, reflecting a growth of 0.8%, reversing the previous declining trend. In March, profits improved further, showing a 2.6% increase month-on-month. However, the automotive sector continues to lag behind. The industry needs effective cost reduction measures to enhance profitability.

As the production scale of the automotive market expands and PPI declines, the pressure on manufacturers who do not produce batteries is significant. With batteries replacing internal combustion engines, profit margins for automakers may continue to decline. The central and local governments are actively working to stabilize fuel vehicle consumption and promote the implementation of scrappage policies, hoping that the simultaneous development of fuel and electric vehicles will lead to overall stability in the automotive industry.

Global Automotive Market Share: In the first quarter of 2025, global vehicle sales reached 22.64 million, a 5% increase year-on-year, with China’s share reaching 33%. The early-year performance of Chinese manufacturers was affected by the Lunar New Year, but with policy incentives kicking in, the market has strengthened since March.

Chinese independent brands have significantly increased their global market share, with strong performances from BYD, Geely, Chery, and Changan. The competitive landscape for international brands has seen declines, with Chinese brands like BYD and Geely rising to 6th and 9th globally, respectively.

New Energy Vehicle Global Market Share: In the first quarter of 2025, global new energy vehicle sales reached 4.46 million, with a share of 19.7%, including 12.9% for pure electric vehicles and 6.8% for plug-in hybrids. The share of hybrid vehicles has also increased.

Chinese independent brands have shown sustained growth in overseas markets, increasing from 1.8% in 2021 to 11.7% in March 2025. The global penetration rate of new energy vehicles is accelerating, having reached 19.2% in 2024. China’s penetration rate for new energy vehicles reached 46%, significantly higher than that of Germany, Norway, and the U.S.

Chinese new energy passenger vehicle growth has outpaced global averages, with a substantial share of the global market. As of the first quarter of 2025, the share of Chinese new energy passenger vehicles continues to rise.

In terms of the export performance of Chinese new energy vehicles, the market has shifted towards high-quality development in the Middle East and developed countries, with notable successes in Western Europe and Asia.

In summary, the automotive industry is undergoing significant transformations, with rapid growth in new energy vehicles and increasing competitive pressures. The outlook remains positive as manufacturers adapt to changing market dynamics and consumer preferences.