Gasoline car sales in China fell 39% over six years as NEVs hit 59% in 2025. Discover the shift and what it means for the industry. Read more now.
China’s passenger‑car market is undergoing one of the most dramatic transformations in recent automotive history. Over the past six years, sales of vehicles powered by internal‑combustion engines (ICE) have plummeted by roughly 7 million units – a 39 % drop – while new‑energy vehicles (NEVs) have surged to dominate the segment.
ICE sales slump and NEV surge
Annual production of gasoline‑powered cars fell from 17.8 million in 2020 to an estimated 10.85 million in 2025, according to data compiled by Autohome. At the same time, NEVs accounted for 59 % of all passenger‑car sales in December 2025, reshaping demand across every major market tier.
Top‑selling ICE models in 2025
Even as the overall ICE market contracts, a handful of models continued to move units. Joint‑venture brands still dominate the upper‑mid range of the rankings:
- Volkswagen Magotan – 202,000 units (up 15.6 % YoY)
- Volkswagen Tiguan L – about 200,000 units (up 18.9 %)
- Toyota RAV4 – around 200,000 units (up 5.6 %)
- Toyota Camry – close to 210,000 units (up 32 %)
- Volkswagen Passat – near 230,000 units (down 7.7 %)
Chinese domestic brands also secured two spots in the top five. Geely’s Xingyue L sold 240,000 units (up 11 %), while the Geely Boyue posted a striking 148 % growth to 230,000 units – the strongest increase among all ICE models.
Models that are losing ground
The three best‑selling ICE models of the year were Volkswagen Sagitar (256,000 units), Volkswagen Lavida (270,000 units, down 16.2 %), and Nissan Sylphy (320,000 units, down 6.5 %). Historical data show long‑term erosion:
- Nissan Sylphy fell from a peak of 538,000 units in 2020 to 320,000 in 2025.
- Volkswagen Lavida dropped from nearly 500,000 units in 2019 to 270,000 in 2025.
What the numbers mean for the industry
Despite the overall contraction, the ranking still highlights the resilience of joint‑venture and well‑established domestic brands. Their entrenched dealer networks and brand loyalty have helped them retain a foothold even as the market narrows.
For manufacturers, the data underline two clear imperatives:
- Accelerate NEV development. With more than half of new‑car buyers opting for electric or hybrid powertrains, staying competitive requires robust electrified line‑ups.
- Re‑evaluate ICE portfolios. Models with stagnant or declining sales may need to be phased out, re‑engineered, or offered in hybrid variants to stay relevant.
Looking ahead
Analysts predict that NEV penetration could exceed 70 % by 2027, further squeezing ICE sales. The shift is not just a Chinese phenomenon; it mirrors a global pivot toward greener mobility. Manufacturers that adapt quickly will capture the emerging demand, while those clinging to traditional gasoline models risk falling behind.
For consumers, the transition promises a wider selection of cleaner, smarter vehicles and, increasingly, government incentives that make electric ownership more affordable.