China gasoline car sales have slumped almost 50% in five years as EVs surge. Discover the market shift and its impact – read more now.
China’s passenger‑vehicle market is undergoing a dramatic transformation. Over the past six years, sales of cars powered by internal‑combustion engines (ICE) have fallen by roughly 39%, shrinking from 17.8 million units in 2020 to just 10.85 million in 2025. The decline mirrors the rapid rise of new‑energy vehicles (NEVs), which accounted for 59% of all new car registrations by December 2025, according to data from Autohome.
Why ICE sales are slipping
The contraction in ICE sales reflects broader changes in consumer behavior and a government push toward electrification. Faster charging infrastructure, stricter emissions standards, and attractive subsidies have accelerated the shift toward electric, plug‑in hybrid, and fuel‑cell models.
Top‑selling ICE models in 2025
Among the ten best‑selling ICE models that year, joint‑venture (JV) brands dominate the middle of the list, while two domestic marques break into the top five:
- Geely Xingyue L – 240,000 units (up 11%)
- Geely Boyue – 230,000 units, a staggering 148% increase, the highest growth among ICE models
- Volkswagen Magotan – 202,000 units, +15.6% YoY
- Volkswagen Tiguan L – ~200,000 units, +18.9% YoY
- Toyota RAV4 – ~200,000 units, +5.6% YoY
- Toyota Camry – ~210,000 units, +32% YoY
- Volkswagen Passat – ~230,000 units, –7.7% YoY
Models losing ground
The three highest‑selling ICE cars in 2025 were the Volkswagen Sagitar (256,000 units), Volkswagen Lavida (270,000 units, down 16.2%), and Nissan Sylphy (320,000 units, down 6.5%). Historical trends show a steep drop for several long‑running models:
- Nissan Sylphy fell from a 2020 peak of 538,000 units to 320,000 in 2025.
- Volkswagen Lavida slipped from nearly 500,000 units in 2019 to 270,000 in 2025.
What the rankings reveal
Even as the overall ICE market contracts, the leaderboard remains topped by well‑established JV and domestic brands that have entrenched dealer networks and strong brand loyalty. Their ability to adapt — by offering hybrid variants or repositioning price points — helps them retain relevance amid the EV surge.
Looking ahead
Analysts expect the ICE segment to keep shrinking, potentially falling below 8 million units by 2030 if current NEV adoption rates hold. For manufacturers, the challenge will be to balance legacy model support with investment in electrified powertrains.
Stay informed on China’s evolving auto landscape and how it could impact global automotive strategies.