Recently, several regions in China have made significant adjustments to their automotive subsidy policies. Provinces such as Jiangsu, Hubei, and Chongqing have tightened the eligibility criteria for vehicle replacement subsidies, introducing a new model where consumers must “secure qualifications before purchasing a car.” According to Zhang Xiang, Director of the International Cooperation Research Center for Digital Automotive at Wodafu, some areas are experiencing rapid depletion of funds, indicating a decline in universal subsidies.
However, Zhang suggests that automakers may increase their promotional efforts and implement their own subsidy policies to ensure robust sales performance. On September 17, the China Association of Automobile Manufacturers (CAAM) released an analysis of the production and sales of new energy vehicles (NEVs) for August 2025. In that month, production and sales of NEVs reached 1.391 million and 1.395 million units, respectively, marking year-on-year increases of 27.4% and 26.8%. From January to August 2025, the production and sales of NEVs totaled 9.625 million and 9.620 million units, showing year-on-year growth of 37.3% and 36.7%.
Additionally, during the first eight months of this year, China achieved a significant milestone, with both the production and sales of automobiles surpassing 20 million units for the first time. Specifically, from January to August 2025, the total production and sales of automobiles reached 21.051 million and 21.128 million units, reflecting year-on-year growth of 12.7% and 12.6%.
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