China Car Sales Rise 14.8% in April on NEV Subsidies

China's passenger vehicle market experienced a strong rebound in April 2025, with sales rising 14.8% year-on-year to 1.78 million units, marking the third consecutive monthly increase and bringing total sales for the first four months to nearly 7 million units, an 8.2% increase from last year. This growth was largely driven by government-subsidized trade-in programs that favor new energy vehicles (NEVs), including electric vehicles and plug-in hybrids, which accounted for over 50% of total sales in April and saw a year-on-year increase of around 34%. However, while domestic demand remains robust, China’s car exports declined for the second straight month, reflecting ongoing international trade tensions, particularly with the US. Consumer enthusiasm for automated-driving systems is waning following a government crackdown on misleading marketing terms and a fatal accident involving an assisted-driving EV, leading automakers to adjust their product positioning. Despite some monthly fluctuations, NEV retail sales continue to show strong year-on-year growth, with penetration rates exceeding 50%, signaling sustained consumer interest supported by government incentives. Overall, while NEV adoption accelerates, regulatory scrutiny and international trade pressures are reshaping China's automotive landscape.