China's vehicle sales increased by 14.7% year-on-year to 2.593 million units in July 2025, following a 13.8% rise in June, according to data from the China Association of Automobile Manufacturers (CAAM). Sales of new energy vehicles (NEVs) surged 27.4% year-on-year to 1.262 million units in July, accounting for 48.7% of all new car sales and marking the fifth consecutive monthly increase. In the first seven months of 2025, total vehicle sales rose 12.0%, while NEV sales jumped 38.5% to 8.22 million units, making up 45% of total sales. On a monthly basis, total car sales fell 10.7% in July, reversing an 8.1% gain in June. Earlier, CAAM had forecast full-year car sales to grow by 4.7% to 32.9 million units, with NEV sales expected to rise 24.4% to 16 million units. In 2024, total vehicle sales increased by 4.5% to 31.436 million units—a sharp slowdown from the 12% growth recorded in 2023.