China’s auto industry posted a 10% production rise and a 4.1% profit margin in 2025, driven by BYD, Geely and growing exports. Learn more now!
China’s automotive sector delivered a strong performance in 2025, with total vehicle output reaching 34.78 million units—a 10% increase over the previous year. The surge was matched by higher revenue and a modest rise in overall profitability.
Production Surge and Revenue Growth
The Chinese car industry generated 11,179.6 billion yuan (about US$1.6 trillion) in revenue, up 7.1% year‑on‑year, according to Cui Dongshu, secretary‑general of the China Passenger Car Association (CPCA). Cost of goods sold totaled 9,849.8 billion yuan, leaving a net profit of 461 billion yuan (≈US$65.9 billion) – a 0.6% increase from 2024. This translates to an overall profit margin of 4.1%.
Top Domestic Manufacturers
Established brands continued to dominate production:
- BYD – 4,602,436 vehicles
- Geely – 3,024,567 vehicles
- Chery – 2,631,381 vehicles
- Great Wall Motor – 1,323,672 vehicles
Emerging EV Players Add Momentum
Newer electric‑vehicle makers also contributed significantly to the totals:
- Leapmotor – 596,555 vehicles
- XPeng Motors – 429,445 vehicles
- Li Auto – 406,343 vehicles
- Nio – 326,028 vehicles
- Xiaomi Auto – over 400,000 vehicles
Export Expansion
China’s export activity accelerated. The China Association of Automobile Manufacturers (CAAM) projects that more than 6.8 million vehicles produced in China will be shipped abroad in 2025, up from 5.86 million in 2024. CPCA data shows total exports of 8.32 million cars for the year, with the top destinations being:
- Mexico – ~625,000 units
- Russia – ~583,000 units
- United Arab Emirates – ~572,000 units
December 2025 Snapshot
Month‑end figures differed from the annual trend. In December, industry revenue slipped 0.8% to 1,157.3 billion yuan (≈US$165.7 billion), while costs rose 0.8% to 1,009.3 billion yuan. Profit fell sharply to 20.7 billion yuan (≈US$3 billion), a 57.4% decline YoY, and the profit margin shrank to 1.8% from 4.1% a year earlier.
Industry Outlook
Despite a dip in December, the full‑year data underscores a healthy growth trajectory: higher production volumes, rising revenue, and a modest profit increase. Inventory levels and receivable terms are tapering, though the sector’s margin remains below the broader industrial average.
Analysts expect the momentum to continue, especially as Chinese EV manufacturers expand overseas and domestic demand stays robust.