In China, market and production growth expected to continue in 2025
- Chinese Market:
• The passenger car market reached a volume of nearly 22.9 million units in 2024, up 5.5% compared to 2023 (source: CPCA). The market was among other factors driven by the two "bonus" systems for purchasing a new vehicle that ended in December 2024 (but was finally extended for 2025): one for scrapping an older ICE vehicle or NEV for a new NEV and the second for scrapping an old vehicle for a new ICE vehicle with an engine smaller than 2.0 litres.The NEV market (BEV+PHEV) reached a volume of 12.23 million units, (+37.8% compared to 2023). NEVs represent 53% of the passenger car market in 2024.
• After a spectacular breakthrough, the Chinese BYD has managed to supplant the Volkswagen and GM groups, to become the number 1 in the market in 2024, with a 15% market share, while Volkswagen has fallen to 10% and GM to 6% (the Chinese brands Wuling and Baojun representing two thirds of GM's 6%). The Chinese groups Chery, Geely and Changan are now in 3rd, 4th and 5th position behind BYD and Volkswagen. Conversely, the Japanese and Korean brands are losing a lot of ground. At the end of 2024, Chinese carmakers represent 66% of the Chinese passenger car market compared to 57% in 2023 and 45% in 2021.
• For 2025, the market should continue to grow at a rate equivalent to 2024, even if some say that the economic climate in China is less dynamic, it is difficult to see it in the figures. The growth of NEVs should also continue with strong competition between Chinese carmakers to launch regularly new models and at competitive prices.
- Production
• The production of passenger cars (PC) in China reached 27,476,886 units in 2024, up 5.2%. These figures include cars assembled under license (J.V.). Chinese production benefits from local dynamics but also from export markets, including Russia, Mexico, Europe but also the Middle East countries (led by the United Arab Emirates and Saudi Arabia) and to a lesser extent ASEAN.
• For 2025, growth should be confirmed at a level equivalent to 2024, with export markets on the rise (Russia) and despite a policy in Europe less in favour of imports from China, but which should not see a notable effect in the short term.