China’s passenger vehicle retail sales rise 5% in August

Core Insights - Retail sales of locally-produced passenger vehicles in China increased by less than 5% to 1.995 million units in August 2025 compared to 1.906 million units in August 2024 [1] - The domestic passenger vehicle market experienced its seventh consecutive month of growth, driven by government sales incentives and price competition among manufacturers [2] - The Chinese government plans to continue funding subsidy programs until at least the end of 2025 while urging manufacturers to limit excessive discounting to protect smaller EV brands [3] Sales Performance - Retail sales of Chinese-owned brands rose by 9% to 1.32 million units in August, making up two-thirds of total passenger vehicle sales [4] - New energy vehicle (NEV) sales increased by 5% year-on-year to just over 1.079 million units in August, showing a slowdown compared to earlier in the year [4] - Overall passenger vehicle retail sales in China for the first eight months of 2025 rose by 9.5% to 14.741 million units from 13.464 million units in the same period last year, primarily driven by strong demand for sedans and SUVs [4] - NEV sales for the same period increased by 25% to 7.540 million units, representing 51% of total passenger vehicle sales [4]