China maintains the market growth amid the transformation of “size to value” – Globaldata

The LV market in China showed noticeable flexibility in August 2025 – a period usually characterized by slow sales – with 14 % increased sizes on an annual basis to 2.2 million units.

This growth was primarily driven by PVS, which increased by 14 % to 2.0 million units, while LCVS also contributed to 17 % on an annual basis, amounting to 191 thousand units. From January to as a whole, sales have grown by 12 % compared to the same period in 2024. The market is increasingly formed through the “anti -revolution” direction, leading to a more stable operating environment with ease in price wars and the quieter promotions. Instead of the aggressive opponent, the competition intensified through hidden measures such as the specifications of the improved model and the benefits of the modified owner. In addition, national support programs to replace vehicles and exempt the purchase tax for the market supported the market in achieving fixed growth, which was reflected more through a significant reduction in inventory. The average annual sale rate for August was 30.0 million units per year, which remains at a historical high level and enhances a weak start pattern, an average, and stable party for the year.

In terms of production, LV production in China reached 2.7 million units in August, an increase of YOY by 11.4 %. PVS, which made up 90 % of a total, increased by 10.9 % year on an annual basis to 2.5 million units, confirming the continuous demand for consumers and market flexibility, while the CV production of 17.5 % on an annual basis to 249 thousand units. Chinese original equipment manufacturers produced a total of 2.0 million units, to achieve YOY by 19.6 %, however JV OEMS showed a weaker performance, with a decrease of 5.2 %. In general, the LV market expanded by 12.1 % on an annual basis during the first eight months of 2025.

Amid the ongoing efforts to reduce excessive competition in the industry, Chinese car manufacturers actively maintain the stability of relative prices in the market, which led to more stability for production rhythms. At the same time, the national vehicle trade policy has provided great support for local production, which greatly enhances the output of compatible and directed models towards replacement. In addition, the growth of exports – especially for emerging markets in Southeast Asia and Latin America – led the volume of additional production, compensating fluctuations in some regional markets and contributing to steady expansion in manufacturing plans.

In August 2025, LV exports in China reached 570 thousand units, an increase of 16.6 % on an annual basis and 4.7 % of my mother. PVS was the main shareholder, as shipments increased by 18.7 % year on an annual basis to 521 thousand units. On the other hand, biography exports decreased slightly by 1.7 % on an annual basis to 49 thousand units. In January to a whole, shipments reached 4.0 million units, an increase of 27.5 % compared to the same period last year.