We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
China Car Sales Hit 2025 High in June, NEVs Power the Surge
Read MoreHide Full Article
Key Takeaways
China sold 2.1M vehicles in June, the highest monthly total of 2025 and up 18.6% year over year.
NEVs made up 52.7% of June sales, with volumes rising 30% year over year and 28% month over month.
BYD led June NEV sales with a 31.7% share, while Tesla's China sales rose 59.3% month over month.
China's car sales hit a 2025 high in June, driven by surging NEV demand and fierce competition among top players like BYD and Geely Auto.
Vehicle sales in China rose for the fifth consecutive month in June, buoyed by the growing demand for electric vehicles (EVs) and supportive government policies. Per the China Passenger Car Association, around 2.1 million cars were sold in the country last month, up 18.6% from the year-ago period and 13.9% month over month. This was the first time in 2025 that monthly sales topped the 2 million mark.
New energy vehicle (NEV) sales (including battery-powered EVs and plug-in-hybrids) accounted for 52.7% of total sales last month, which was also the highest for any month in 2025. NEVs witnessed year-over-year growth of 30% in June and also rose 28% from the May levels.
Per the China Association of Automobile Manufacturers, total vehicle sales in the first half of 2025 soared 11.4% to 15.65 million units, with NEV sales rising 40% to 6.94 million units.
Key Trends Shaping the Market
This surge in NEV demand reflects several key dynamics at play. China’s transition toward electric mobility is accelerating, supported by a growing range of models and aggressive pricing strategies. However, the market remains intensely competitive, especially within the EV space, where prolonged price wars are starting to weigh on profit margins. Government incentives and trade-in programs have played a role in sustaining demand, though their impact may be showing signs of diminishing as 2025 progresses.
Breaking Down the Sales Leaders in China’s Auto Market
BYD Company Limited (BYDDY - Free Report) maintained its lead as China's largest NEV maker in June with a 31.7% market share. BYD sold 352,081 NEVs in June, up 25.7% year over year and 20% from the May levels. However, the price cuts by BYD have drawn attention from regulators and criticism from industry groups. The second quarter of 2025 marked the third straight quarter of BYD beating Tesla in battery EV sales.
US EV giant Tesla (TSLA - Free Report) sold 61,484 vehicles in China in June, up 59.3% from 38,588 units in May 2025 and 3.75% from 59,261 units sold in June 2024, per CNEV Post. This was Tesla’s second-highest monthly domestic total in 2025, behind only 74,127 units delivered in March. However, in the second quarter of 2025, Tesla sold 128,803 EVs in China, down 4.3% from the first quarter and 11.7% from the corresponding quarter of 2024.Tesla took the fourth spot in China's NEV market share in June with 5.5%, up from 3.8% in May.
Geely Automobile (GELYY - Free Report) retailed 114,798 NEVs in June, marking an 80.7% jump from a year ago, though sales dipped 12% from May. With a 10.3% share in June, Geely held onto its No. 2 spot in NEV retail sales. For the first half of 2025, Geely racked up 685,788 NEV retail sales, giving it a 12.5% share of China’s market. Geely has raised its 2025 sales goal by 11%, now aiming to sell 3 million units from 2.71 million forecasted earlier.
US legacy automaker General Motors (GM - Free Report) saw its strongest quarterly sales growth in China in four years in the second quarter of 2025, with deliveries topping 447,000 units, up 20% year over year. This marks General Motors’ second straight quarter of sales gains in the region, fueled by strong demand for its expanding NEV lineup and popular high-volume models. NEV sales jumped 50% from a year ago. For the first half of 2025, General Motors sold more than 890,000 vehicles in China, a 9.4% increase. Its Wuling Hong Guang MINIEV led NEV sales, with the newer four-door version accounting for nearly 60% of second-quarter deliveries.
Wrapping Up
China’s auto market continues its momentum, thanks to a robust demand, especially for NEVs. However, headwinds like intensifying competition and margin pressures remain. Automakers are racing to stay ahead — not just with flashy new models but with sharper pricing, expanded lineups and scaled production. The second half of the year will reveal whether this momentum can be sustained or if the sector will hit speed bumps ahead.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
China Car Sales Hit 2025 High in June, NEVs Power the Surge
Key Takeaways
China's car sales hit a 2025 high in June, driven by surging NEV demand and fierce competition among top players like BYD and Geely Auto.
Vehicle sales in China rose for the fifth consecutive month in June, buoyed by the growing demand for electric vehicles (EVs) and supportive government policies. Per the China Passenger Car Association, around 2.1 million cars were sold in the country last month, up 18.6% from the year-ago period and 13.9% month over month. This was the first time in 2025 that monthly sales topped the 2 million mark.
New energy vehicle (NEV) sales (including battery-powered EVs and plug-in-hybrids) accounted for 52.7% of total sales last month, which was also the highest for any month in 2025. NEVs witnessed year-over-year growth of 30% in June and also rose 28% from the May levels.
Per the China Association of Automobile Manufacturers, total vehicle sales in the first half of 2025 soared 11.4% to 15.65 million units, with NEV sales rising 40% to 6.94 million units.
Key Trends Shaping the Market
This surge in NEV demand reflects several key dynamics at play. China’s transition toward electric mobility is accelerating, supported by a growing range of models and aggressive pricing strategies. However, the market remains intensely competitive, especially within the EV space, where prolonged price wars are starting to weigh on profit margins. Government incentives and trade-in programs have played a role in sustaining demand, though their impact may be showing signs of diminishing as 2025 progresses.
Breaking Down the Sales Leaders in China’s Auto Market
BYD Company Limited (BYDDY - Free Report) maintained its lead as China's largest NEV maker in June with a 31.7% market share. BYD sold 352,081 NEVs in June, up 25.7% year over year and 20% from the May levels. However, the price cuts by BYD have drawn attention from regulators and criticism from industry groups. The second quarter of 2025 marked the third straight quarter of BYD beating Tesla in battery EV sales.
US EV giant Tesla (TSLA - Free Report) sold 61,484 vehicles in China in June, up 59.3% from 38,588 units in May 2025 and 3.75% from 59,261 units sold in June 2024, per CNEV Post. This was Tesla’s second-highest monthly domestic total in 2025, behind only 74,127 units delivered in March. However, in the second quarter of 2025, Tesla sold 128,803 EVs in China, down 4.3% from the first quarter and 11.7% from the corresponding quarter of 2024.Tesla took the fourth spot in China's NEV market share in June with 5.5%, up from 3.8% in May.
Geely Automobile (GELYY - Free Report) retailed 114,798 NEVs in June, marking an 80.7% jump from a year ago, though sales dipped 12% from May. With a 10.3% share in June, Geely held onto its No. 2 spot in NEV retail sales. For the first half of 2025, Geely racked up 685,788 NEV retail sales, giving it a 12.5% share of China’s market. Geely has raised its 2025 sales goal by 11%, now aiming to sell 3 million units from 2.71 million forecasted earlier.
Geely sports a Zacks Rank #1 (Strong Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.
US legacy automaker General Motors (GM - Free Report) saw its strongest quarterly sales growth in China in four years in the second quarter of 2025, with deliveries topping 447,000 units, up 20% year over year. This marks General Motors’ second straight quarter of sales gains in the region, fueled by strong demand for its expanding NEV lineup and popular high-volume models. NEV sales jumped 50% from a year ago. For the first half of 2025, General Motors sold more than 890,000 vehicles in China, a 9.4% increase. Its Wuling Hong Guang MINIEV led NEV sales, with the newer four-door version accounting for nearly 60% of second-quarter deliveries.
Wrapping Up
China’s auto market continues its momentum, thanks to a robust demand, especially for NEVs. However, headwinds like intensifying competition and margin pressures remain. Automakers are racing to stay ahead — not just with flashy new models but with sharper pricing, expanded lineups and scaled production. The second half of the year will reveal whether this momentum can be sustained or if the sector will hit speed bumps ahead.