BUSINESS

China’s Imported Car Sales Hit Decade Low Amid EV Onslaught

Published: Dec. 31, 2025 1:01 a.m. GMT+8

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At Shanghai’s Waigaoqiao Port, the Hoegh vessel unloads a shipment of imported cars at the Haitong International Auto Terminal. Photo: VCG

China’s imported car market continued its downward spiral in 2025, registering a fourth straight year of decline as homegrown electric vehicle makers ramped up competition and European luxury brands lost ground.

From January through November, sales of imported passenger vehicles dropped 15.5% year-on-year to 492,000 units, according to data released Monday by the China Automobile Dealers Association (CADA). Imports of vehicles tumbled 29.7% to 440,000 units over the same period. Passenger vehicles made up 98.5% of all imports.

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China’s imported car sales fell 15.5% year-on-year to 492,000 units (Jan–Nov 2025), with imports dropping 29.7% to 440,000 units; market has declined for four straight years.
Domestic EV makers are outcompeting European luxury brands, causing brands like Mercedes-Benz and BMW to see sales drop over 18% each.
Chinese car exports are projected to exceed 7 million in 2025, as local brands rapidly expand overseas, especially into Europe.

AI generated, for reference only

Who’s Who

Lexus: In 2025, Lexus was the top-selling import brand in China, with sales increasing by 1.9% to 167,000 units. This performance contrasts with sharp declines experienced by its European luxury rivals in the Chinese import market.

Mercedes-Benz: Mercedes-Benz faced a significant decline in the Chinese market. Sales of imported Mercedes-Benz vehicles plunged by 18.9% in the first 11 months, underperforming the average for luxury imports. Additionally, sales of locally manufactured Mercedes-Benz cars in China also experienced a drop of 18.7%. These declines highlight the challenges faced by European luxury brands amidst increased competition from homegrown electric vehicle makers and a shift towards more affordable cars in China.

BMW: Sales of imported BMW vehicles in China plunged by 21% in the first eleven months of 2025. Additionally, sales of locally manufactured BMWs in China dropped 14.7% to 528,000 units during the same period. BMW is one of the luxury brands that dominate China's import market, but its European brands are underperforming.

Porsche: Porsche is a luxury brand in China's import market, where it previously accounted for over 90% of imports. However, in the first 11 months of 2025, sales of imported Porsche vehicles in China plunged by 22.6%. Facing pressure from the EV transition, Porsche has also abandoned some of its electrification targets.

Audi: Audi experienced significant difficulties in the Chinese market in 2025. Its imported car sales registered the steepest decline among luxury brands, plummeting by 41.3%. Sales of locally manufactured Audi vehicles in China also saw a notable drop of 13.3%. This performance highlights the challenges faced by European automotive brands amidst rising competition from Chinese EV makers.

Volkswagen: In 2025, Volkswagen shut down a factory in Germany, a historic first for the company. This action reflects the pressures European carmakers face from the accelerating EV transition and the growing competition from Chinese rivals.

AI generated, for reference only

What Happened When

2014：: China’s auto imports peaked at around 1.3 million units.

2020：: China’s auto imports fell below the 1 million mark.

2024：: China’s auto imports dropped to 705,000 units.

Late 2024：: Some dealers in China stockpiled imported large-engine gasoline cars anticipating retaliatory tariffs after the EU imposed duties on Chinese EVs.

January 2025 through November 2025：: Sales of imported passenger vehicles in China dropped 15.5% year-on-year to 492,000 units, and imports of vehicles fell 29.7% to 440,000 units.