The Chinese automotive market kicked off December 2025 with some intriguing shifts, revealing a landscape where new energy vehicles (NEVs) are clearly taking the wheel, even as overall sales dipped. It’s a fascinating mix of robust EV growth against a backdrop of traditional vehicle slowdowns.
Overall Market Performance
In the first week of December, China’s passenger vehicle retail sales hit 297,000 units. That’s a 32 per cent slide compared to the same period last year, and an 8 per cent drop from late November. This dip wasn’t just at the retail level. Wholesale shipments from domestic automakers also saw a significant reduction, plummeting almost 40 per cent year-on-year to 298,000 units, and sitting 18 per cent lower than the previous month. Remember, “wholesale total” here means vehicles moving from factory gates to dealership lots, waiting for you to snag them.
NEVs Continue Their Ascent… Mostly
Now, let’s talk about the stars of the show, New Energy Vehicles. These include your pure battery-electric rides and the ever-popular plug-in hybrids. While overall sales were down, NEVs still commanded a substantial chunk of the market. They accounted for 185,000 retail units in the first week of December, though that was a 17 per cent decrease year-on-year and a 10 per cent dip from late November. Wholesale NEV shipments followed a similar trend, totaling 191,000 units, marking a 22 per cent year-on-year decrease and a 20 per cent month-on-month decline. Even with these short-term dips, NEVs are dominating, representing a whopping 62.2 per cent of total passenger vehicle retail sales and 64.3 per cent of wholesale volume for the week. It’s clear which way the wind is blowing.
The Bigger Picture: 2025 So Far
Looking at the bigger picture for 2025, the narrative is strongly pro-EV. Cumulative passenger vehicle retail sales by early December reached a solid 21.78 million units, a healthy 5 per cent increase over the same period in 2024. NEV retail sales absolutely crushed it, hitting 11.66 million units, showing a remarkable 19 per cent year-on-year growth. And what about those wholesale numbers? Total wholesale shipments for the year soared to 27.06 million units, up 10 per cent, with NEV wholesale volumes reaching an astounding 13.95 million units, a 27 per cent increase over 2024. This kind of sustained growth confirms the long-term trend: electric is the future.
Production Snapshot
Breaking down the production numbers for the first week of December, traditional fuel-powered light vehicles saw 212,000 units produced. That’s down 27 per cent year-on-year and 18 per cent from November. Hybrid and plug-in hybrid vehicle production held its own, reaching 140,000 units. This was a 10 per cent decrease from the same period last year and just 2 per cent lower than November. It’s clear that manufacturers are adjusting their output to meet changing demands, focusing more on the electrified options. It’s a fascinating look at how quickly China’s auto industry is evolving, especially when you consider the advancements in technology, from magnetic ride suspensions to cutting-edge 900V architectures and advanced LIDAR systems.
Overall, while the first week of December saw a bit of a slowdown in the total passenger vehicle market and production, NEVs are clearly leading the charge. They represent the lion’s share of both retail and wholesale volumes, hinting at a rapid shift in consumer preference and industry focus towards a more electric future. The automotive landscape in China remains incredibly dynamic, with exciting developments constantly emerging, like the recent surge in full-size electric SUVs and the continued innovation in EV charging infrastructure that supports this electrifying transition.
