China’s car sales hit a 2025 high in June, driven by surging NEV demand and fierce competition among top players like BYD and Geely Auto.
Vehicle sales in China rose for the fifth consecutive month in June, buoyed by the growing demand for electric vehicles (EVs) and supportive government policies. Per the China Passenger Car Association, around 2.1 million cars were sold in the country last month, up 18.6% from the year-ago period and 13.9% month over month. This was the first time in 2025 that monthly sales topped the 2 million mark.
New energy vehicle (NEV) sales (including battery-powered EVs and plug-in-hybrids) accounted for 52.7% of total sales last month, which was also the highest for any month in 2025. NEVs witnessed year-over-year growth of 30% in June and also rose 28% from the May levels.
Per the China Association of Automobile Manufacturers, total vehicle sales in the first half of 2025 soared 11.4% to 15.65 million units, with NEV sales rising 40% to 6.94 million units.
This surge in NEV demand reflects several key dynamics at play. China’s transition toward electric mobility is accelerating, supported by a growing range of models and aggressive pricing strategies. However, the market remains intensely competitive, especially within the EV space, where prolonged price wars are starting to weigh on profit margins. Government incentives and trade-in programs have played a role in sustaining demand, though their impact may be showing signs of diminishing as 2025 progresses.
BYD Company Limited BYDDY maintained its lead as China’s largest NEV maker in June with a 31.7% market share. BYD sold 352,081 NEVs in June, up 25.7% year over year and 20% from the May levels. However, the price cuts by BYD have drawn attention from regulators and criticism from industry groups. The second quarter of 2025 marked the third straight quarter of BYD beating Tesla in battery EV sales.
US EV giant Tesla TSLA sold 61,484 vehicles in China in June, up 59.3% from 38,588 units in May 2025 and 3.75% from 59,261 units sold in June 2024, per CNEV Post. This was Tesla’s second-highest monthly domestic total in 2025, behind only 74,127 units delivered in March. However, in the second quarter of 2025, Tesla sold 128,803 EVs in China, down 4.3% from the first quarter and 11.7% from the corresponding quarter of 2024.Tesla took the fourth spot in China’s NEV market share in June with 5.5%, up from 3.8% in May.
