Has Chinese light vehicle demand peaked?

Over the past decade, China has established itself as one of, if not the leading player in the global automotive sector, holding both the largest domestic sales volume and highest vehicle manufacturing output in the world. That lead widened again in 2025. The country’s topline domestic Light Vehicle (LV) sales are estimated to reach a seven-year high of 26.9 mn units, up by 5.5% year-on-year (YoY) compared to 2024, aided by aggressive discounting and supportive government policy. However, the market’s red ...