By Theodore Opara
China has extended its dominance as the world’s largest automotive producer for a 17th straight year, turning out a record 34.531 million vehicles and selling 34.4 million units in 2025.
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Data from the China Association of Automobile Manufacturers (CAAM) show production rose 10.4 per cent year-on-year, while sales grew 9.4 per cent—both historic highs that reinforce China’s lead as the world’s biggest auto market.
New energy vehicles (NEVs) powered the surge, with production and sales exceeding 16 million units and accounting for more than half of domestic new car sales. Exports also hit a new peak, surpassing 7 million vehicles, including 2.615 million NEVs—more than double the previous year.
Global rankings for 2025, finalised after Stellantis’ financial report, saw three Chinese automakers break into the top 10. Toyota, Volkswagen, Hyundai Motor and General Motors held the top four positions, while Stellantis placed fifth with over 5.4 million units sold.
Chinese brands continued their upward climb. BYD rose to sixth with 4.602 million vehicles, including 2.2567 million pure electric units—up 27.86 per cent—overtaking Tesla as the world’s top EV seller for the first time. SAIC and Geely Holdings also improved their standings, while Nissan dropped out of the top 10.
Analysts credit strong policy support for the sector’s rapid expansion. Government trade-in programmes generated more than 2.6 trillion yuan ($380 billion) in sales in 2025, benefiting about 360 million consumers. Vehicle trade-ins exceeded 11.5 million units, with NEVs accounting for nearly 60 per cent.
China’s growing global footprint is reshaping the industry. Its market share climbed to 35.6 per cent in 2025, up from 34.2 per cent in 2024, according to Cui Dongshu, Secretary-General of the China Passenger Car Association.
SAIC and Geely overtook Ford and Honda, with Geely surpassing 4 million annual sales for the first time and extending its growth streak to five consecutive years.
Overseas expansion also accelerated. BYD’s international sales jumped 145 per cent to 1.05 million units, while SAIC sold 1.071 million vehicles abroad, up 3.1 per cent.
Adding industry perspective, Tesla CEO Elon Musk noted in a recent comment that “Chinese car companies are the most competitive in the world,” underscoring the scale and speed at which the country’s automakers are reshaping the global market. Volkswagen Group CEO Oliver Blume also highlighted China’s strategic importance, describing it as not only a key market but a hub of innovation, setting the pace in electric mobility, software, artificial intelligence and battery technology.
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