China unveils plan to stabilize car sales

Saturday 13 September 2025 - 16:00

By: Sahili Aya

China unveils plan to stabilize car sales

China announced on Saturday a two-year plan aimed at stabilizing growth in its automotive sector, which has been under pressure from an intense price war among manufacturers and rising trade barriers abroad.

According to official figures, overall vehicle sales are expected to grow by about 3% in 2025, reaching an estimated 32.3 million units. This represents a slowdown compared to the 4.5% growth recorded between 2023 and 2024. However, the segment of new energy vehicles, including electric models, remains dynamic, with sales forecast at 15.5 million units next year — a jump of nearly 20% from 2024.

The plan, jointly announced by eight government agencies, calls for stricter monitoring of production costs and pricing practices, while also promoting innovation and supporting domestic demand. China has invested heavily in electric mobility in recent years, but aggressive discounting campaigns have forced many smaller companies out of business, as larger automakers flooded the market with low-cost cars.

In July, senior Chinese officials urged the sector to curb what they called “irrational competition” and to pursue more sustainable development. Meanwhile, Chinese manufacturers face growing challenges in overseas markets. The European Union continues its anti-subsidy investigation into Chinese electric vehicles, while earlier this week Mexico proposed raising tariffs on Chinese cars to 50%, a move that sparked criticism from Beijing.