By Chinese carmakers are projected to end 2025 with approximately 27 million vehicles sold worldwide, marking a 17% increase compared to 2024. In contrast, Japanese manufacturers recorded flat sales of around 25 million units, ending their 20-year reign at the top of global rankings.
To put this achievement into perspective, Chinese brands were trailing Japan by nearly 8 million vehicles as recently as 2022. Closing such a massive gap in just three years highlights what experts describe as a structural transformation in manufacturing, pricing, and technology leadership.
Electric Vehicles Drive China’s Rapid Growth
One of the biggest reasons behind this surge is China’s dominance in New Energy Vehicles (NEVs), which include electric vehicles (EVs) and plug-in hybrids. In China alone, NEVs now account for nearly 60% of passenger car sales, giving domestic brands an unmatched scale advantage.
Leading companies such as BYD and Geely benefit from deep vertical integration, controlling everything from battery production to vehicle software. This approach allows Chinese automakers to significantly reduce costs while maintaining competitive technology.
Affordable EV Pricing Attracts Global Buyers
Chinese EVs are also winning international markets due to aggressive pricing. The most popular models fall in the 100,000 to 150,000 Yuan range (approximately PKR 3.8 to 5.7 million), making them affordable for middle-class buyers.
This pricing strategy has enabled rapid expansion into emerging markets such as Pakistan, Southeast Asia, Africa, and Latin America, where cost-sensitive consumers are increasingly shifting toward electric mobility.
Japanese Market Share Declines in Southeast Asia
The impact is especially evident in Southeast Asia. Chinese vehicle sales in the region surged by 49% in 2025 alone. In Thailand, a long-standing stronghold of Japanese automakers, Japanese market share has fallen sharply—from 90% to 69% in just five years.
Top Chinese Automakers by Global Sales (2025)
- BYD: 4.6 million vehicles
- Geely: 3.0 million vehicles
- Chery: 2.6 million vehicles
- Changan: 2.5 million vehicles
These brands are now reshaping competition across global automotive markets.
A New Era in the Global Auto Industry
As the world accelerates toward electrification, affordability, and sustainability, China’s rise signals a new global order in the automotive sector. With strong EV adoption, competitive pricing, and aggressive international expansion, Chinese automakers are no longer challengers—they are industry leaders.
