Chinese Automakers Outsell Japan for First Time, Surging Ahead with Electrics

Chinese automakers, according to Nikkei China, sold more cars worldwide in 2025, marking the first instance where China has surpassed Japan in annual car sales after more than 20 years of Japanese dominance. Data provided by automakers and S&P Global Mobility indicate that Chinese automakers will sell about 27 million cars worldwide in 2025, compared to just under 25 million by Japanese automakers. The total includes both passenger and commercial vehicles, as well as domestic sales and exports.

It is forecasted that the domestic Chinese market will account for approximately 70% of the total sales by Chinese automakers. Nearly 60% of passenger car sales in China are attributed to new energy vehicles, including battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). Industry reports highlight that companies like BYD and Geely are now among the top ten global automakers by sales volume in 2025, while Chery has become one of China’s largest exporters, showcasing significant growth in overseas sales.

In Europe, sales of Chinese automakers are expected to rise to about 2.3 million units, despite existing import duties, as export volumes include plug-in hybrid models exempt from additional tariffs. There is also expected growth in emerging markets. In Africa, 230,000 vehicles are expected to be sold, reflecting a 32% increase from the previous year, while in Latin America, 540,000 vehicles are expected to be sold, a 33% increase.

Japanese automakers, whose global sales peaked in 2018 at nearly 30 million vehicles, are expected to remain slightly below China’s sales volumes in 2025. Some Japanese brands have faced declining sales in key regions, including the US. Their market share in China has gradually decreased compared to local automakers.