Industry Overview - Sales of Chinese-made vehicles, including exports, declined by over 6% to 3.272 million units in December 2025, after a 10% increase to 3.489 million units a year earlier [1] - Domestic sales fell by almost 16% to 2.519 million units last month, compared to a 12% growth to 2.985 million units a year earlier, while exports surged by over 49% to 753,000 units [1] - In 2025, total sales of China-made vehicles increased by over 9% to 34.402 million units from 31.436 million units in 2024, with domestic sales rising by almost 7% to 27.304 million units and exports increasing by 21% to 7.098 million units [2] New Energy Vehicles (NEVs) - Sales of new energy vehicles rose by 28% to 16.490 million units in 2025, accounting for 48% of total industry volumes, driven by a 38% surge in battery electric vehicle (BEV) sales to 10.622 million units [3] - Domestic NEV sales increased by 20% to 13.875 million units last year, while exports doubled to 2.615 million units [3] Market Dynamics - The domestic vehicle market was supported by government stimulus measures, including vehicle trade-in incentives and cuts in vehicle purchase taxes, alongside strong price competition and new model launches [4] - However, the domestic market has lost significant momentum recently due to weakening consumer and business sentiment, as well as strong year-earlier volumes [4] Future Outlook - The Chinese government confirmed the continuation of the vehicle trade-in subsidy program in 2026 to boost domestic consumption [5] - GlobalData forecasts a 3% increase in light vehicle sales to 27.63 million units in 2026, up from 26.9 million units in 2025 [5] Manufacturer Performances - BYD's global sales increased by 7.7% to 4,602,436 units in 2025, despite an over 18% decline in December, marking the fourth consecutive month of decline due to weakening domestic demand [6] - Overseas sales for BYD surged by 151% to 1,046,083 units last year [6] - SAIC Motor reported a 12% increase in global sales to 4,507,518 units in 2025, driven by a 33% rise in NEV sales to 1,642,785 units [7] - SAIC-GM-Wuling reported a 21% rise in global deliveries to 1,615,066 units, while SAIC-VW's sales fell by 11% to 1,024,000 units [7]