According to recent market analysis from authoritative sources, the Chinese passenger car market has undergone significant transformation between 2020 and the first half of 2025. The shift towards electric vehicles (EVs) is evident, with a notable decline in traditional fuel-powered cars and a remarkable rise of domestic automotive brands.

The growth momentum of new energy vehicles continues to accelerate. In the first half of 2025 alone, China saw 529.49 million units sold, reflecting an impressive year-on-year increase of 30.65%. The market penetration rate reached 48.89%, marking an 8.51 percentage point rise compared to the same period last year and nearing a 50% milestone.

These figures indicate that for every two new vehicles sold, nearly one is an electric model. The improvement in charging infrastructure and rapid technological advancements have significantly influenced consumer purchasing behavior.

Contrastingly, the internal combustion engine (ICE) vehicle market has continued to shrink, with sales dropping 7.48% year-on-year to 553.59 million units. Mainstream fuel-powered models from traditional joint-venture brands have faced severe challenges.

The rise of domestic automotive brands holds particularly significant meaning, with their market share reaching 62.08%, up by 7.44 percentage points year-on-year and setting a new record high.

Underpinning this shift are key achievements by leading domestic automakers like BYD,吉利 (Geely), and长城 (GAC) in the EV sector. Their breakthroughs in technology have been complemented by advancements in intelligent cabin systems and autonomous driving features. From budget-friendly models to premium segments above 300,000 RMB, these brands have successfully broken price barriers traditionally maintained by foreign companies.

With a series of highly anticipated new energy vehicles expected to launch in the second half of 2025, industry experts project that the EV market penetration rate could surpass 50% for the full year. Furthermore, domestic brands may aim to capture an even larger share of the market.