China Passenger Car Sales December 2025: CPCA Outlook

On December 19, data released by the China Passenger Car Association (CPCA) indicated that China passenger car sales December 2025 are estimated at 2.3 million units, reflecting a 12.7% year-over-year decline. The estimate covers sedans, SUVs, and MPVs, while excluding minivans.

• During the same month, New Energy Vehicle (NEV) retail volumes are projected at 1.38 million units, underscoring the continued structural shift toward electrification despite broader market pressure.

December traditionally marks a peak period for China’s auto market, and manufacturers intensified short-term promotions during the Double 12 shopping festival to secure full-year targets. While the expiry of vehicle trade-in subsidies encouraged cautious buying behavior, year-end replacement demand and expectations around a possible purchase tax subsidy phase-out helped restore seasonal buying patterns and stabilize showroom traffic.
China Passenger Car Sales December 2025 market dynamics
The CPCA highlighted that underlying demand remained resilient even as policy uncertainty influenced consumer timing. Automakers balanced tactical discounts with inventory discipline, aiming to avoid excessive price erosion while still stimulating demand during a critical sales window. This approach helped the market gradually return to a more predictable seasonal rhythm.
China Passenger Car Sales December 2025 and regulatory signals
At the same time, competitive conditions showed signs of normalization. On December 12, China’s State Administration for Market Regulation issued new compliance guidance on automotive pricing practices. The framework encourages manufacturers to move away from aggressive price-led volume strategies and toward value-based competition, supporting healthier margins and long-term industry stability.
Together, these developments suggest that while short-term pressures persist, clearer regulation and seasonal demand recovery are laying the groundwork for steadier operations across China’s passenger vehicle market entering the new year.