Xin Lang Cai Jing·2025-07-14 04:08Core Insights - The domestic passenger car market in China experienced an unexpected growth of 10.8% in the first half of the year, with June retail sales reaching 2.084 million units, a year-on-year increase of 18.1% and a month-on-month increase of 7.6% [1] - The market is seeing a shift with price wars becoming milder, while hidden incentives such as enhanced features and adjustments to owner rights are becoming more common [1] Sales Performance - In June, the wholesale share of domestic brands reached 67.1%, up 2.2% year-on-year, while the retail share was 64.2%, up 5.6% year-on-year [2][3] - Retail sales of domestic brands in June were 1.34 million units, a year-on-year increase of 30% and a month-on-month increase of 7% [3] - The cumulative retail market share of domestic brands in the first half of the year was 64%, an increase of 7.5 percentage points compared to the same period last year [3] Brand Performance - BYD's June sales reached 377,628 units, with a total of 2,113,271 units sold in the first half of the year, marking an 11% year-on-year increase [4] - Chery Group's June sales were 233,607 units, a 16.6% year-on-year increase, with 71,582 units being new energy vehicles, up 59.6% [4] - Geely's June sales were approximately 236,000 units, a 42% year-on-year increase, with a total of 1,409,000 units sold in the first half of the year, up 47% [4] Market Dynamics - The sales ranking for the first half of 2025 shows BYD leading with 1,610,042 units sold, followed by Geely with 1,225,673 units, and FAW-Volkswagen with 743,543 units, which saw a decline of 3.6% [7] - The luxury car segment saw retail sales of 230,000 units in June, a year-on-year decrease of 7% but an 18% increase month-on-month [3] Future Outlook - The market is expected to experience a gradual slowdown in growth due to high inventory levels and increased pressure on dealers' profitability as bank loan incentives diminish [8] - The overall production pace is anticipated to stabilize as automakers work to maintain relative price stability in the market [8]