Core Insights - China's car sales reached a record high for 2025 in June, driven by increasing demand for new energy vehicles (NEVs) and intense competition among leading manufacturers like BYD and Geely Auto [1][10] Sales Performance - Vehicle sales in China rose for the fifth consecutive month in June, with approximately 2.1 million cars sold, marking an 18.6% increase year-over-year and a 13.9% increase month-over-month [2][10] - NEV sales accounted for 52.7% of total sales in June, the highest percentage for any month in 2025, with a year-over-year growth of 30% and a month-over-month increase of 28% [3][10] - Total vehicle sales in the first half of 2025 reached 15.65 million units, an 11.4% increase, while NEV sales rose 40% to 6.94 million units [3] Market Dynamics - The surge in NEV demand reflects China's accelerating transition to electric mobility, supported by a wider range of models and aggressive pricing strategies [4] - The market remains highly competitive, particularly in the EV sector, where ongoing price wars are impacting profit margins [4] Leading Companies - BYD maintained its position as the largest NEV maker in China with a 31.7% market share, selling 352,081 NEVs in June, a 25.7% increase year-over-year [5] - Tesla sold 61,484 vehicles in China in June, a 59.3% increase from May, but experienced a 4.3% decline in sales compared to the first quarter of 2025 [6] - Geely sold 114,798 NEVs in June, an 80.7% increase year-over-year, holding a 10.3% market share [7] - General Motors reported its strongest quarterly sales growth in China in four years, with deliveries exceeding 447,000 units in the second quarter of 2025, a 20% year-over-year increase [9] Future Outlook - The second half of 2025 will be critical in determining whether the current momentum in China's auto market can be sustained amid rising competition and margin pressures [11]

24 June 2025 | 2:11PM CST China Automobiles EVs - no inflection in sight Bottom line: After reassessing the S/D balance of the China NEV industry, we see no inflection in sight (see more details here). Our assessment shows: Industry capex trend and capacity addition Capacity is still expanding, but at slower pace. China NEV capacity is still expanding but at a slower pace vs. 2023/2024, we expect 2.5mn units of net adds (+13% yoy) in 2025E. On the back of expectations for declining industry capex in 2025E-2 ...

Group 1 - General Motors (GM) has decided to stop exporting vehicles from the United States to China amid ongoing trade negotiations between the two countries [1] - The Durant Guild, GM's premium import brand, accounted for less than 0.1% of total sales in China, prompting a restructuring of operations due to significant economic shifts [2] - In Q1 2025, GM and its joint ventures delivered over 442,000 vehicles in China, achieving year-over-year sales growth and increasing market share for the third consecutive quarter [3] Group 2 - Sales of new energy vehicles (NEVs) in China surged by 53.2% year-over-year, with GM planning to expand its NEV portfolio further in 2025 [3] - Ford Motor Company has also paused shipments of several U.S.-built vehicles to China due to retaliatory tariffs, which have increased import taxes significantly [4] - Tesla halted new orders for its Model S and Model X in China following increased tariffs on U.S. imports, facing rising competition from domestic manufacturers like BYD [5]