China's Car Sales Rise 1.3% in First Two Months of 2025
China's car sales increased by 1.3% in the first two months of 2025 compared to the same period last year, driven by an expanded customer subsidy program that boosted auto demand amidst a competitive smart electric vehicle (EV) price war. February saw a notable rebound with a 26.1% rise in passenger vehicle sales to 1.41 million units, following a significant drop in January due to the Lunar New Year holiday. Despite the growth of EV and plug-in hybrid sales, gasoline cars continue to dominate the market for the third consecutive month.
- This uptick in sales reflects the complex interplay between government incentives and the fierce competition among automakers, particularly in the burgeoning EV segment where consumer preferences are rapidly evolving.
- Will the ongoing price war among automakers lead to sustainable growth in the EV market, or will it ultimately harm profit margins and industry stability?