China’s EV sales stumble off the line in 2025, raising profit concerns for carmakers

Deliveries of pure electric and plug-in hybrid cars across mainland China plummeted 50 per cent to 206,000 units in the first 12 days of the year compared with the same period in December, according to the China Passenger Car Association (CPCA).

The sharp decline follows a 42 per cent surge in sales last year, making evident the volatility in the world’s largest EV market.

“A sales drop in January has been expected because the government subsidy for EV purchases has been phased out since the beginning of the year,” said Gao Shen, an independent analyst in Shanghai. “The sales figures showed that the market would continue to be volatile despite increasing EV adoption.”

In July, Beijing doubled the trade-in subsidy for EV buyers to 20,000 yuan (US$2,729) per vehicle, three months after introducing the incentive, but the programme ended on December 31.

Last month, 1.38 million electric cars were delivered nationwide, up 10 per cent from November, as buyers rushed to finalise deals before year-end, CPCA data showed.