China Sets 2025 Auto Sales Target at 32.3M Units, Trailing Industry Forecasts

China has set a 2025 vehicle sales target of approximately 32.3 million units, slightly below the 32.9 million forecast by the China Association of Automobile Manufacturers (CAAM), aiming for stable growth in the auto sector. The government plans for new energy vehicle (NEV) sales to reach 15.5 million units, a 20% increase but under CAAM's 16 million projection. The plan includes conditional approval for Level 3 autonomous vehicles and focuses on improving road safety, insurance frameworks, regulatory gaps, and fostering fair competition to create a more orderly market environment. To address recent challenges, authorities will launch a three-month campaign targeting false marketing and online irregularities following a damaging price war among automakers and dealers. Despite the sector's cooling, with slower growth in August and electric vehicle sales growth dropping to 6%, experts suggest a possible rebound in the final quarter of 2025. These measures reflect the government's effort to stabilize the industry while enhancing efficiency, quality, and scale by 2026.