GlobalData
4 min read
In This Article:
In April 2025, China’s light vehicle (LV) market sustained its robust growth trajectory, with sales increasing by 12% YoY to approximately 2.0 million units. This expansion was chiefly propelled by a surge in demand for PVs (passanger vehicles or cars), which grew by 13% YoY and reached 1.8 million units during the month, accounting for 88% of the total LV market.
The market’s overall performance was bolstered by government stimulus measures—notably the extension of vehicle trade-in and scrappage incentive programs, which have markedly stimulated domestic demand, especially for NEVs. Additionally, sales of LCVs followed a positive trend, with a modest 2.0% YoY increase. On a cumulative basis, LV sales in January-April grew by 12.1% YoY. The national subsidy policy, promoting the replacement of older vehicles with new models, continued to serve as a pivotal driver of consumer spending. Data indicates that the April selling rate reached an annualized figure of 26.4 million units, reflecting a slight 1% decrease from March.
The Chinese government has played a crucial role in driving the growth of the LV market through a series of supportive policies and incentives. The extension of vehicle trade-in scrappage incentive schemes until the end of 2025 has been particularly effective in stimulating domestic demand, particularly for NEVs. These incentives help to reduce purchase restrictions, lower the cost of ownership, and promote the adoption of sustainable transportation solutions. Additionally, the government’s focus on reducing emissions and promoting green technologies has created a favorable environment for the development of the NEV market.
The rapid growth of China’s e-commerce sector has also had a significant impact on the LV market, particularly in the Commercial Vehicle segment. The expansion of e-commerce platforms and the growth of online retail have led to increased demand for last-mile logistics and small business operations, making LCVs an essential component of the modern supply chain. The need for more efficient and flexible transportation solutions has driven demand for LCVs, contributing to the overall growth of the automotive market.
In terms of production, total LV output for April stood at 2.5 million units. This figure represents a robust 8.4% YoY increase, despite being a 12.2% MoM decline. Cumulatively, YTD 2025 volumes have amassed to 9.8 million units, indicating a commendable growth of 13.2%. PV production, which constitutes 90% of overall LV production, achieved a significant result in April, reaching 2.2 million units. This marks an impressive YoY surge of 8.8%. In contrast, the LCV sector reported a more modest, yet still noteworthy, increase, with April’s production totaling 303k units, up 6.1% from the previous year.
