China’s gasoline car sales have plunged almost 50% in five years, reshaping the market. Discover the trends and what’s next – read more now.
China’s passenger‑car market is undergoing a rapid transformation. Annual gasoline‑car production has fallen from 17.8 million units in 2020 to just 10.85 million in 2025 – a decline of almost 50 %.
Why the drop matters
The plunge mirrors the surge of new‑energy vehicles (NEVs). By December 2025, NEVs accounted for 59 % of all car sales, according to data from Autohome, fundamentally reshaping demand across every major segment.
Scope of the decline
In six years, sales of internal‑combustion‑engine (ICE) cars slipped by roughly 7 million units, a 39 % reduction. The shift reflects broader changes in consumer buying habits and an accelerated rollout of electric powertrains in China’s compact‑car segment.
Top‑selling ICE models in 2025
Among the ten best‑selling ICE models, joint‑venture brands dominate positions six through ten. Highlights include:
- 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)
Domestic Chinese marques also made a strong showing, securing two spots in the top 5:
- Geely Xingyue L: 240,000 units (+11 %)
- Geely Boyue: 230,000 units (+148 % – the highest growth rate among ICE models)
Flagship ICE models losing ground
The three best‑selling ICE cars in 2025 were:
- Volkswagen Sagitar – 256,000 units (up)
- Volkswagen Lavida – 270,000 units (down 16.2 %)
- Nissan Sylphy – 320,000 units (down 6.5 %)
Both the Lavida and Sylphy illustrate longer‑term erosion. The Nissan Sylphy fell from a peak of 538,000 units in 2020 to 320,000 in 2025, while the Lavida slipped from nearly 500,000 units in 2019 to 270,000 in 2025.
What the numbers reveal
Even as the overall ICE market contracts, joint‑venture and well‑established domestic brands retain robust positions. Their resilience suggests that, while the pie is shrinking, the core players are still able to capture a sizable share of the remaining demand.
Key takeaways
- Gasoline‑car sales in China have dropped almost 50 % over the last five years.
- NEVs now represent more than half of all new‑car registrations.
- Joint‑venture brands (Volkswagen, Toyota) continue to dominate the top‑selling ICE segment.
- Geely’s strong growth highlights the potential for domestic brands to thrive within a shrinking ICE niche.
- Long‑standing models such as the Nissan Sylphy and VW Lavida are seeing double‑digit declines, underscoring the speed of market realignment.
As China accelerates toward an electric‑first future, the next few years will likely see further contraction of ICE sales and an even larger share for new‑energy vehicles.