China sees continued surge in NEV sales, with 686,000 units sold in February

China’s new-energy vehicle (NEV) industry in China is experiencing significant growth in 2025, with domestic retail sales of 686,000 units in February, which represents a remarkable 79.7-percent year-on-year increase, according to the China Passenger Car Association (CPCA). NEVs made up 49.5 percent of all domestic passenger car sales in February, a 15-percentage-point rise compared to the previous year. The total NEV retail sales for January and February combined reached 1.43 million units, showing a 35.5 percent year-on-year surge.

In February, Chinese-made NEVs penetrated 70 percent of the market, and it is expected that March will continue to show robust growth in China’s passenger car market, largely driven by the buoyant sales of NEVs. The CPCA anticipates a contraction in sales of traditional fossil fuel-powered vehicles in China.

The positive outlook for the NEV market is supported by the quick recovery of various industries following the 8-day Spring Festival holiday, leading to a substantial month-on-month increase in production and sales in March. The Chinese government’s supportive policies, continuous technological advancements, and consumer upgrades are identified as major factors driving the thriving NEV market in the country.

The report also emphasizes the importance of maintaining a balanced approach between fossil fuel and electric vehicles, rather than focusing solely on one segment. This balance will help stabilize both domestic and international auto sales while promoting the steady development of the supply chain. Chinese automobile brands are gaining global acceptance, contributing to the sustainable growth of the NEV market.

Cui Dongshu, the secretary-general of the CPCA, highlighted China’s well-established infrastructure that has paved the way for the rapid expansion of the NEV sector. He noted that the construction of charging stations in China has kept pace with the increasing sales of electric vehicles, with one charging station serving approximately three vehicles. China stands out globally in terms of NEV charging infrastructure, offering a widespread network of charging stations that enhance user satisfaction among taxi drivers, ride-hailers, and private car owners.

Overall, the continued growth of China’s NEV industry is driven by a combination of supportive government policies, technological advancements, and evolving consumer preferences. As the market for NEVs expands both domestically and internationally, it is essential to maintain a balance between different types of vehicles to ensure sustainable growth and development in the automotive sector.