China's Car Sales Plummet 14.5% in December, Marking Steepest Decline in Two Years

China's passenger car sales fell 14.5% in December 2025, the steepest monthly decline in nearly two years, as competitive pressures intensified. Full-year growth slowed to 3.9%, highlighting ongoing challenges in the world's largest automotive market.

Insights:
China's passenger car sales experienced a dramatic downturn in December 2025, plummeting 14.5% year-over-year to 2.28 million units. This marks the sharpest monthly decline in nearly two years and the worst performance since February 2024, according to data released by the China Passenger Car Association on Friday, January 9, 2026.
Cars drive along the road during sunset in Beijing, China, January 5, 2026. REUTERS/Maxim Shemetov
Cars drive along the road during sunset in Beijing, China, January 5, 2026. REUTERS/Maxim Shemetov
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