China Shakes Up the Auto Industry: Electric Cars Outpace Gasoline in 2025

In a landmark moment for the global automotive sector, China has recorded an unprecedented shift as electric vehicle sales outpaced those of traditional gasoline-powered cars, signaling a rapid transition toward clean energy and cementing Beijing’s dominance in the world’s largest EV market.

According to data from the China Passenger Car Association, fully electric and plug-in hybrid vehicle sales reached around 13 million units in 2025, setting a historic record. In contrast, internal combustion engine vehicle sales fell 13% year-on-year to approximately 12.3 million units, marking their lowest level in 15 years.

This shift represents a historic transformation in China’s car market, even as the sector enters 2026 with slower momentum compared to previous years, following the gradual reduction of government support programs that have been key drivers of demand.

Estimates cited by Bloomberg suggest that the market is undergoing a delicate rebalancing between supply and demand, amid shrinking subsidies and growing consumer price sensitivity, potentially reshaping competition within the world’s largest automotive market.