Tesla’s revised Model Y on sale in China.

Retail sales of passenger vehicles in China, including sedans, MPVs and SUVs, rose by over 14% to 1.940 million units in March 2025 from 1.696 million units a year earlier, according to data compiled by the China Passenger Car Association (CPCA).

Compared with February, the Chinese market expanded by 40% – reflecting improving consumer sentiment during the quarter, government incentives targeted at the new energy vehicle (NEV) segment and strong price competition among domestic manufacturers.

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In the first quarter of 2025 passenger vehicle sales in China rose by 6% to 5.127 million units from 4.837 million in the same period of last year, driven by higher demand for sedans and SUVs, while MPV sales were slightly weaker. Sales by domestic brands rose by almost 8% in this period, to account for around 63% of total sales.

Retail sales of new energy vehicles (NEVs), comprising mainly battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), increased by 38% to 988,000 units last month according to the CPCA, resulting in a 37% increase in first-quarter sales to 2.414 million units.

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