Written by Cláudio Afonso | LinkedIn | X
China accounted for 33.7% of global automobile sales in January and February, as the country’s auto market rebounded from a slow start to the year due to the Chinese New Year, data from the China Passenger Car Association (CPCA) showed on Saturday.
Global vehicle sales rose 6% year over year in February to 6.66 million units, returning to levels last seen during the February 2018 peak. Cumulative sales for the first two months of 2025 reached 13.52 million units, up 2% from a year earlier, according to CPCA Secretary General Cui Dongshu.
Jan-Feb Sales by Segment
In the sub-100,000 yuan segment, Chinese automaker Wuling led the market in the first two months of the year with strong sales of the Hongguang Mini EV (46,900 units), followed by Geely’s Galaxy brand with the Geometry E22H (46,100).
In the 100,000–200,000 yuan range, XPeng’s entry-level Mona M03 topped sales with 31,000 units, while BYD’s Yuan Plus followed with 19,400 vehicles sold.
In the 200,000–300,000 yuan segment, Xiaomi’s debut model SU7 and Tesla’s Model Y were the best selling models as the Elon Musk led company stopped producing the old Model Y in January and started ramping up production of the new version.
In 2024 — and besides Tesla — the German automaker Volkswagen was the only non-Chinese brand with a model in the top ten in the 200,000 – 300,000 yuan range, with its ID.4 SUV recording 55,500 units. However, in the first two months of 2025, VW sales fell sharply exiting the top ten.
In the premium 400,000–500,000 yuan segment, Zeekr and BMW were the best selling brands in January-February, with Zeekr’s 009 MPV and BMW’s iX3 ranking among the top-selling models with 2,500 and 2,400 units, respectively.
Sales in China were held back earlier in the year by the Chinese New Year holiday, which typically affects the demand with March showing a recovery, according to the Secretary General.
BYD ranked sixth globally in terms of sales volume in February, followed by Geely in seventh place, Cui added.
Foreign automakers continued to lose ground in the world’s largest auto market, except Suzuki and Tata Motors, which gained share due to strength in India. However, domestic sales of the India-based automaker fell 9% year on year in February to 77,232 units.
Non-Chinese carmakers saw declines in 2024, and early 2025 results show limited recovery amid increasing competition from local NEV makers and uncertainty around US policy, according to the CPCA.
US Tariffs on Imported Cars
Bernstein said in a new research note last week that it sees little risk for Chinese automakers from U.S. President Donald Trump’s latest pledge to impose a 25% tariff on all foreign-made vehicles and most components starting later this week.
China-made electric vehicles already face steep U.S. tariffs, including a 100% rate raised from 25% by former President Joe Biden last year.
In a new research note, Bernstein analyst Daniel Roeska wrote that the tariffs “have practically no impact on Chinese auto OEMs or EV players,” adding that “none of the OEMs in our coverage have any immediate or medium plans” to enter the U.S. market.
Roeska cited “long-standing geopolitical tensions” between the two countries as the primary reason for Chinese carmakers staying out of the U.S.
“Chinese OEMs’ lack of interest has largely been the status quo since the Trump 1.0 administration, which imposed a 25% tariff on Chinese vehicle imports in 2018,” he wrote.
“The strategic decision to avoid the U.S. market has been reinforced during the Biden administration, particularly with the introduction of the Inflation Reduction Act (IRA), which designates China as a foreign entity of concern,” Roeska added. “This effectively restricts Chinese EV players and their supply chains from accessing the U.S. market. And later on, tariffs have escalated to 100%.”
While some companies have floated alternative entry routes, Bernstein sees little evidence of near-term U.S. ambitions.
“Although some OEMs, such as BYD, have expressed interest in building a manufacturing plant in Mexico, our understanding is that the foreseeable plan is aimed at serving the broader LATAM market, rather than acting as a gateway to the U.S.,” the analyst said.
