China's Auto Production and Sales Exceed 12 Million in First Five Months, New Energy Vehicles Account for Over 40%

On June 11, the China Association of Automobile Manufacturers (CAAM) released the 'Automobile Production and Sales Situation in May 2025', indicating that in the first five months of this year, production and sales of automobiles both exceeded 12 million units, with a year-on-year growth of over 10%. From January to May, automobile production reached 12.826 million units and sales reached 12.748 million units, reflecting a year-on-year increase of 12.7% and 10.9%, respectively. Notably, new energy vehicles (NEVs) accounted for a significant portion, with production and sales reaching 5.699 million and 5.608 million units, respectively, marking increases of 45.2% and 44% year-on-year. In May alone, automobile production and sales were 2.649 million and 2.686 million units, showing month-on-month growth of 1.1% and 3.7%, and year-on-year growth of 11.6% and 11.2%. For NEVs, production and sales in May were 1.27 million and 1.307 million units, reflecting year-on-year increases of 35% and 36.9%, with NEV new vehicle sales constituting 48.7% of total new vehicle sales. According to CAAM, the automobile market sustained a favorable trend in May, achieving over 10% growth compared to the same period last year, with strong performance in both domestic demand and exports. The passenger vehicle market was particularly active, while the commercial vehicle market still needs recovery, and NEVs continued to experience rapid growth. From January to May, production and sales of passenger vehicles reached 11.08 million and 10.996 million units, respectively, up 14.1% and 12.6% year-on-year. In traditional fuel passenger vehicles, sales of A, B, and C class vehicles saw a decline. Currently, sales are mainly concentrated in the A class, with cumulative sales of 3.068 million units, down 10.1% year-on-year. In contrast, NEV passenger vehicles saw varying degrees of growth across all classes, primarily concentrated in A and B classes, with cumulative sales of 1.57 million and 1.373 million units, up 24.5% and 17.5% year-on-year. High-end NEV brands in China are developing rapidly, significantly increasing the proportion of high-end NEV passenger vehicles, leading the consumption upgrade. In terms of exports, China exported 551,000 vehicles in May, a month-on-month increase of 6.6% and a year-on-year increase of 14.5%. From January to May, total vehicle exports reached 2.49 million units, up 7.9% year-on-year. Specifically, among the top ten manufacturers in vehicle exports from January to May, Chery exported 442,000 units, up 1.6% year-on-year, accounting for 17.7% of total exports. BYD showed the most significant export growth, reaching 382,000 units, a year-on-year increase of 110%. CAAM pointed out that while the overall operation of the automotive industry in China is showing a stable and positive trend, market vitality is being continuously released, but the industry's profitability continues to decline, and the situation of 'increased volume without increased profit' has not improved. Disorderly 'price wars', characteristic of intense competition, are significant factors in the industry's declining efficiency. On May 31, CAAM publicly released an initiative to maintain fair competition and promote healthy industry development, aiming to guide all enterprises to adhere to fair competition principles, pursue innovation-driven strategies, and continuously improve product quality and service standards.