According to data from China Association of Automobile Manufacturers (CAAM), China's automobile production and sales reached 2.45 million vehicles and 2.42 million vehicles respectively in January, a moderate increase of 1.7% and -0.6% compared with last year.
Though there were fewer working days in January compared with last year due to the Chinese New Year holiday, both the automobile production and sales performed modestly on a year-on-year perspective thanks to the renewed trade-in policy, as well as the consumption recovery boosted by the holiday factor.
In detail, the domestic automobile sales reported 1.95 million vehicles, down 34.5% month on month (MoM) and 2.1% year on year (YoY), CAAM data showed. Among them, the sales of traditional internal combustion engine (ICE) vehicles were 1.16 million vehicles, down 23.7% MoM and 15.1% YoY.
Nevertheless, the passenger vehicle sector outperformed with an annual increase of 3.3% and 0.8% respectively concerning the production and sales, which stood at 2.15 million vehicles and 2.13 million vehicles in January, down 28.4% and 31.6% respectively from last month.
Specially, the domestic sales of passenger vehicle reached 1.74 million vehicles in January, down 35.5% MoM and 0.5% YoY. The ICE passenger vehicles sales were 0.98 million vehicles, down 24.6% MoM and 14.3% YoY.
Entering 2025, the consumption in major domestic cities showed a significant rebound during the CNY holiday, during which time the average daily sales revenue of consumption-related industries increased by 10.8% nationwide. The automobile market, bolstered by a combination of intensive policy measures at national level and proactive promotions by enterprises, saw multiple car companies launching new models and releasing technological innovation achievements, all of which contributed to the healthy and sustainable development of the industry.
For electric vehicles (EVs), the market's development has been sustainable and impressive. In January, the EV production and sales were 1.02 million vehicles and 0.94 million vehicles respectively, rising 29% and 29.4% from last year, which took up 38.9% of the total sales of new vehicles.
Among them, the domestic sales of EVs read 0.79 million vehicles, down 45.8% MoM and up 26.2% YoY, data showed. The electric passenger vehicles sales stood at 0.76 million vehicles in January, marking a monthly fall of 45.7% but an annual growth of 25.9%. It is expected that the domestic EV market will maintain momentum with the continuous support from the policy end and market expansion.
Looking ahead, the Central Economic Work Conference held before the CNY holiday systematically outlined the economic agenda for 2025, with a more proactive and constructive policy stance set to invigorate the economy's continuous recovery and upward trajectory. This approach is poised to bolster market confidence and expectations. The first State Council executive meeting post the CNY holiday has placed consumption stimulation in a more prominent position, with relevant national ministries and commissions actively following the central government's guidance.
Therefore, it is believed that with the introduction and thorough execution of a series of policies, the automobile industry will continue its healthy development.