China Continues Record-Breaking Growth in Vehicle and NEV Sales in 2025

China's vehicle sales continue to accelerate, with the China Association of Automobile Manufacturers (CAAM) reporting an 11.4% increase in total vehicle sales during the first half of 2025, reaching 15.65 million units. Notably, sales of New Energy Vehicles (NEVs) surged by 40%, totaling 6.94 million units. June marked a peak in 2025 vehicle sales, driven by robust demand for electric vehicles and intensified competition among leading brands such as BYD and Geely Auto. For five consecutive months leading up to June, China's vehicle sales showed consistent growth, supported by government policies favoring electric mobility and an expanding consumer base. The China Passenger Car Association noted an 18.6% year-over-year increase in passenger car sales, alongside a 13.9% rise compared to the previous month. With annual vehicle sales in China already surpassing 31 million in 2023 and 2024, projections indicate that 2025 may set new records, primarily fueled by NEV sales. Additionally, a significant portion of new vehicles—approximately 20% to 25%—are equipped with leather interiors, equating to around 6-7 million units over the past two years. This demand extends beyond vehicles to s...