China analyzes the developments in automotive growth and policy accommodations in 2025 and beyond.

Recently, the China Association of Automobile Manufacturers (CAAM) took place in Changsha, Hunan, for the 2025 Automotive Industry Statistical Yearbook Working Conference, during which the car industry chiefs demonstrated a deep market analysis of the existing automotive tendencies. According to Chen Shihua, a Deputy Secretary General of CAAM, the total production and sales of vehicles are in the continuous growth curve.

Consumer-oriented policies have additionally favored the passenger vehicle market even though the commercial vehicle market is having less energetic momentum, according to the market analysis. EVs and full vehicle exports have also been doing very well, which contributes to the increased market share of Chinese motor vehicles. Moreover, positive signs have been observed recently in continuous attempts to correct the issue of inefficient competition in the industry in a term called involution competition.

Strategies to stabilize the market were advised by Chen to continue over the long term to exploit the latent demand. He also suggested the withdrawal of vehicle purchase tax incentives in a gradual process followed by the cut of the rate of 3 percent in 2026 and 7 percent in 2027. The analysis of the market also highlighted the necessity of better policy control and expanded structural direction towards ensuring long-term industry stability.

This market analysis makes it clear that China is dedicated to the creation of a strong automotive industry without losing competitiveness in the domestic and international markets.