China's automotive sector reported significant growth in 2025, with total revenue reaching 11,179.6 billion yuan (approximately 1.6 trillion USD). This marked a 7.1% increase over the previous year, according to Cui Dongshu, general secretary of the China Passenger Car Association (CPCA). The industry's cost of goods sold totaled 9,849.8 billion yuan (approximately 1.41 trillion USD). This resulted in a total industry profit of 461 billion yuan (approximately 65.9 billion USD), up 0.6% from 2024. Based on these figures, the overall industry profit margin stood at 4.1%.

Several major Chinese automakers were key contributors to the annual output. BYD led with 4,602,436 vehicles sold, while Geely reported 3,024,567 units. Chery sold 2,631,381 vehicles, and Great Wall Motor delivered 1,323,672 vehicles in 2025.

BYD contributed the most to China's total annual automotive output. Photo: Xiansheng Digital

New automotive manufacturers also played a role in the industry's performance. Leapmotor delivered 596,555 vehicles, XPeng Motors 429,445 units, Li Auto 406,343 units, and Nio 326,028 units. Xiaomi Auto also exceeded 400,000 vehicles. These figures were included in the industry's total output and revenue.

Chinese automakers expanded their global sales reach in 2025 through increased export volumes. Data from a CarNewsChina report indicated this trend. The China Association of Automobile Manufacturers (CAAM) projected that exports of China-made vehicles could surpass 6.8 million units for the full year 2025, rising from 5.86 million units in 2024, contributing to the industry's overall output.

Furthermore, CPCA data revealed that China exported 8.32 million vehicles in 2025. The top three destination markets were: Mexico (approximately 625,187 units), Russia (approximately 582,738 units), and the UAE (approximately 571,937 units).

Despite the strong annual performance, December 2025 showed a different trend. Total revenue for the automotive industry in December reached 1,157.3 billion yuan (approximately 165.7 billion USD), a 0.8% decrease compared to December 2024. Costs increased by 0.8% to 1,009.3 billion yuan (approximately 144.4 billion USD). Consequently, December's profit was 20.7 billion yuan (approximately 3.0 billion USD), a significant 57.4% drop from the same period last year. The profit margin for December 2025 was 1.8%, notably lower than the 4.1% recorded in December 2024.

Industry data also highlighted a trend of decreasing inventory and accounts receivable in the automotive sector, which remained higher than the average for industrial enterprises. Additionally, the automotive industry's profit margin continued to be lower than the overall industry benchmark.

In summary, while the full year 2025 saw growth in output, revenue, and costs, leading to a slight increase in overall industry profit, December 2025 experienced a year-on-year and quarter-on-quarter decline in automotive industry profits.

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