China's new energy vehicle (NEV) production and sales maintained an uptrend in September, boosted by firm consumer demand and government incentives.
China produced about 1.617mn NEVs in September, up by 24pc on the year, data from the China Association of Automobile Manufacturers (CAAM) show. Sales increased by 25pc on the year to 1.604mn units.
The country produced about 11.243mn NEVs over January-September, rising by 35pc compared with the same period in the year earlier. Sales rose by 35pc to 11.228mn over the same period.
The country's NEV sales have led global growth over the past decade, supported by increasing consumer adoption and government incentives aimed at helping the country achieve its decarbonisation targets for 2030 and 2060. NEVs accounted for 40.9pc of total auto sales in China in 2024, up from 31.6pc in 2023 and 26pc in 2022. NEV penetration grew further to 49.7pc in September from 48.8pc in August.
China has extended its government incentives to maintain its NEV sales growth. Major cities such as Beijing and Shanghai have continued to ease purchasing restrictions in 2025. The municipal government of Beijing in September announced a further relaxation of the city's sales restrictions, allowing citizens to use their car registration quotas from gasoline vehicles to buy an EV as many times as they wish.
The country's total NEV sales are projected to rise further to around 16mn units in 2025, CAAM forecasts.
China exported 222,000 NEVs in September, doubling from a year earlier, according to CAAM data. Exports totalled 1.727mn units in January-September, up by 86pc from the same period in 2024.
But the industry could face challenges that may potentially threaten its growth rate. There are industry discussions that a major domestic automaker is likely to cut its EV sales target for 2025 because of lower-than-expected sales so far this year, although this has not been officially confirmed. The Chinese government has also laid out plans to curb the "rat-race" low price competition in the NEV industry.
| China NEV production and sales | ||||
| Type | Sep'25 (unit) | Y-o-y ± % | Jan-Sep'25 (unit) | Y-o-y ± % |
| Production | ||||
| Battery-electric | 1,059,000 | 35 | 7,273,000 | 46 |
| Plug-in hybrids | 558,000 | 6.9 | 3,967,000 | 20 |
| Fuel-cell | 441 | 174 | 2,230 | -47 |
| Total production | 1,617,000 | 24 | 11,243,000 | 35 |
| Sales | ||||
| Battery-electric | 1,058,000 | 36 | 7,220,000 | 45 |
| Plug-in hybrids | 546,000 | 6.7 | 4,005,000 | 20 |
| Fuel-cell | 408 | 94 | 2,208 | -47 |
| Total sales | 1,604,000 | 25 | 11,228,000 | 35 |
| Source:CAAM | ||||
