In April 2025, the light vehicle market in China (LV) maintained the path of strong growth, as sales increased by 12 % year on an annual basis to about 2.0 million units. This expansion was mainly paid by increasing demand for PVS (Passanger vehicles or cars), which grew by 13 % on an annual basis and reached 1.8 million units during the month, which represents 88 % of the total LV market.
The overall performance of the market has been strengthened through government stimulus measures-in particular the extension of auto incentives and vehicle incentives programs, which significantly motivated the local demand, especially for NEVS. In addition, LCVS sales followed a positive direction, with a modest increase of 2.0 % on an annual basis. On a cumulative basis, LV sales grew in January to April 12.1 % on an annual basis. The national support policy, which enhances the replacement of old vehicles with new models, continued as a pivotal engine to spend on consumer. The data indicates that the April sale rate has reached an annual number of 26.4 million units, which reflects a 1 % slight decrease from March.
Source: Globaldata
The Chinese government played an important role in leading the LV market growth through a series of policies and supporting incentives. The extension of the incentives traded in vehicles until the end of 2025 was particularly effective in stimulating local demand, especially for NEVS. These incentives help reduce purchase restrictions, reduce the cost of ownership, and enhance the adoption of sustainable transport solutions. In addition, focusing on the government on reducing emissions and promoting green technologies has created a favorable environment to develop the NEV market.
The rapid growth of the e -commerce sector in China had a significant impact on the LV market, especially in the commercial vehicle sector. The expansion of e -commerce platforms and online retail growth has increased demand for logistics in the last mile and small business operations, making LCVS an essential component in the modern supply chain. The need for more efficient and flexible transportation solutions prompted LCVS, which contributed to the total growth of the car market.
In terms of production, the total LV production for April amounted to 2.5 million units. This number represents a strong increase of 8.4 % on an annual basis, although it is 12.2 % decrease. Categorically, YTD 2025 sizes collected 9.8 million units, indicating growth worth 13.2 %. PV production, which constitutes 90 % of the total LV production, achieved a major result in April, reaching 2.2 million units. This represents an impressive Yue boom of 8.8 %. On the other hand, the LCV sector reported a more modest increase, however it is still worth noting, as the total production of April 303K, an increase of 6.1 % over the previous year.
In April, LV exports in China maintained a strong growth path, with 486,000 units. This number represents an increase in the year by 1.5 %, as exports made up 19 % of the total production of LV. The PV sector was the main driver of this growth, with 430K unit was exported, although this represents a 0.7 % decrease on an annual basis. At the same time, the CV sector exported 56 thousand units, recorded an increase of 22.5 % on an annual basis. From January to April 2025, car exports in China reached 1.8 million units, reflecting the YOY growth rate by 4.9 %.
The temporary conclusion of the commercial negotiations of the United States of China, with low customs tariff rates until August 10, 2025, provided some relief to the export market in China. However, the demand for Chinese trade is still not certain amid continuous negotiations. The export market is an important component of the LV industry in the country, and any changes in commercial policies or definitions can significantly affect the performance of the market. Continuous commercial negotiations and the possibility of making more changes in commercial policies add a component of uncertainty to future market expectations.
Regarding sales expectations, injecting the recent tariff policies made by the Trump administration against China a great degree of uncertainty in the broader market. However, the resulting effect appears to be more indirectly associated with the consumer’s fear of the general economic climate rather than direct impact on exports.
On the contrary, the Chinese LV market is expected to maintain its momentum in the coming months, and it is promoted by continuous government support, technological progress, and advanced consumer preferences. In particular, the NEV chip is placed for more expansion, driven by the increasing consumer preference for sustainable transport and continuous technological innovations. The market response to emerging trends and government policies will be pivotal in shaping its future path.
In short, April 2025 celebrated another strong month for the LV market in China, with strong sales growth across the major sectors and brands. The market performance emphasizes the importance of government incentives, technological innovation and advanced consumer preferences in leading its continuous expansion. With the continued development in the market, it will be important to monitor emerging trends, political changes and technological developments to remain at the top of the curve and benefit from new opportunities.
Source: Globaldata
This article was first published on the specialized research platform in Globaldata, Car Intelligence Center.
The “light vehicle market in China is still growing – Globaldata” was originally created and published by Only carsThe brand owned by Globaldata.
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