On August 18, market analysis revealed trends in China's passenger vehicle market segments for July 2025. National passenger vehicle wholesale sales reached 2.22 million units in July, setting a new monthly record with a 13% year-on-year increase and an 11% month-on-month decline. From January to July, cumulative wholesale sales totaled 15.5 million units, up 12.4% year-on-year. Due to retail market adjustments, July wholesale growth exceeded retail growth by 7 percentage points.

Domestic brand manufacturers achieved wholesale sales of 1.58 million units in July, rising 20% year-on-year and declining 5% month-on-month. Mainstream joint venture brands sold 440,000 units wholesale, up 7% year-on-year but down 21% month-on-month. Luxury vehicle wholesale reached 200,000 units, falling 16% year-on-year and 25% month-on-month. The wholesale landscape among major passenger vehicle manufacturers continues evolving, with several mid-tier companies showing signs of growth, including GEELY AUTO (00175), Dongfeng Nissan, XPENG-W (09868), Xiaomi Auto, and LEAPMOTOR (09863), all demonstrating strong month-on-month performance.

July 2025 passenger vehicle retail sales grew 6%, significantly lower than the 13% wholesale growth. Restricted high-interest incentives and suspended subsidies contributed to July retail decline. Both sedan and SUV retail performance was weak, with C-class SUVs becoming July's retail leaders. SUV premium segments performed strongly, while A0-class sedans showed recovery and A00-class sedans maintained good sales performance. Strong export growth and robust domestic retail supported manufacturers' high sales volumes in the first half of the year.

July 2025 passenger vehicle retail growth lagged behind wholesale growth. The 2025 auto market shows clear policy-driven characteristics, with scrapping and renewal programs boosting sedan demand and trade-in policies supporting SUV demand growth. Pre-Spring Festival market prosperity focused on county and rural markets, while post-festival urban consumer growth showed structural changes. County and rural market prosperity benefited economy vehicles, with fuel vehicle market recovery achieving higher sales volumes.

**Economic Passenger Vehicle Market Trends**

**1. A00-Class Sedan Market Performance** A00-class sedans achieved wholesale sales of 123,100 units in July 2025, representing 13.27% of wholesale share, with 49% year-on-year growth and 14% month-on-month decline. July retail sales grew 13% year-on-year and fell 13% month-on-month. January-July cumulative wholesale reached 940,200 units with 78% cumulative growth, while domestic retail totaled 739,700 units with 41% cumulative growth.

The A00-class market has returned to competitive dynamics reminiscent of 20 years ago, when Xiali, Chery, Geely, Changan, and BYD all offered competitive A00-class products. Recently, BYD COMPANY (01211), Geely, Chongqing Changan Automobile Company Limited (000625), Chery, and FAW Bestune have demonstrated outstanding performance with diversified A00-class flagship models and new products, with micro electric vehicles gradually showing incremental potential.

**2. A0-Class Sedan Market Trends** A0-class sedans recorded wholesale sales of 133,800 units in July 2025, accounting for 14.42% of wholesale share, with 105% year-on-year growth and 1% month-on-month increase. July retail sales rose 79% year-on-year and declined 7% month-on-month. January-July wholesale reached 824,900 units with 74% cumulative growth, while domestic retail totaled 550,600 units with 82% cumulative growth.

Domestic electric vehicles clearly replacing fuel vehicles marks a new trend where competitive dynamics shift from joint venture dominance to domestic brand leadership. Toyota and Honda previously maintained strong positions, while domestic fuel-powered entry-level small cars faced relative difficulties in recent years. A0-class sedans show clear comprehensive electrification trends with essentially no strong fuel vehicle products, demonstrating obvious advantages of domestic pure electric products.

**3. A0-Class SUV Sales Trends** A0-class SUVs achieved wholesale sales of 143,900 units in July 2025, representing 12% of wholesale share, with 9% year-on-year decline and 8% month-on-month decrease. July retail sales fell 7% year-on-year and 5% month-on-month. January-July wholesale totaled 1,081,500 units with 3% cumulative decline, while domestic retail reached 655,300 units with 2% cumulative decrease.

Mainstream compact SUVs from Japanese and Korean brands have essentially exited the market, while domestic electric vehicles demonstrate strong performance.

**A-Class Passenger Vehicle Market Trends**

**1. Compact Sedan Market Performance** A-class sedans recorded wholesale sales of 335,800 units in July 2025, representing 36.2% of wholesale share, with 3% year-on-year growth and 5% month-on-month decline. July retail sales decreased 2% year-on-year and 8% month-on-month. January-July wholesale reached 2,251,700 units with 6% cumulative decline, while domestic retail totaled 2,165,100 units with 5% cumulative decrease.

New energy vehicles dominated the mainstream sedan market in 2024, with BYD maintaining absolute leadership. Fuel vehicle markets showed cyclical recovery in early 2025, while Volkswagen fuel vehicles retain certain market space, with mainstream family cars remaining most practical as fuel vehicles.

**2. Compact SUV Market Trends** A-class SUVs achieved wholesale sales of 690,000 units in July 2025, accounting for 57.54% of wholesale share, with 27% year-on-year growth and 8% month-on-month decline. July retail sales increased 17% year-on-year and fell 14% month-on-month. January-July wholesale totaled 4,767,300 units with 17% cumulative growth, while domestic retail reached 3,495,300 units with 16% cumulative growth.

Mainstream SUV market dynamics rapidly evolved, with BYD, Geely, Changan, and Chery SUVs demonstrating exceptional performance, achieving comprehensive domestic and international breakthroughs for domestic SUVs.

**B-Class Passenger Vehicle Market Trends**

**1. B-Class Sedan Market Performance** B-class sedans recorded wholesale sales of 287,300 units in July 2025, representing 30.96% of wholesale share, with 4% year-on-year decline and 16% month-on-month decrease. July retail sales grew 3% year-on-year and fell 14% month-on-month. January-July wholesale reached 2,183,900 units with 4% cumulative growth, while domestic retail totaled 2,033,100 units with 9% cumulative growth.

Japanese brands rapidly contracted in the premium sedan market, while domestic new energy premium brands rose quickly, particularly with domestic electric vehicles dominating premium taxi and ride-hailing markets.

**2. B-Class SUV Market Trends** B-class SUVs achieved wholesale sales of 297,600 units in July 2025, accounting for 24.82% of wholesale share, with 6% year-on-year decline and 14% month-on-month decrease. July retail sales decreased 10% year-on-year and 16% month-on-month. January-July wholesale totaled 2,025,200 units with 4% cumulative growth, while domestic retail reached 1,771,300 units with 3% cumulative growth.

Domestic new energy brands rapidly emerged in the premium SUV market, weakening traditional fuel vehicles' premium advantages, while recent BMW and other premium brands showed some improvement.

**3. B-Class and Above MPV Market Trends** B-class MPVs recorded wholesale sales of 50,500 units in July 2025, representing 53.65% of wholesale share, with flat year-on-year performance and 19% month-on-month decline. July retail sales declined 2% year-on-year and 14% month-on-month. January-July wholesale reached 385,200 units with 19% cumulative growth, while domestic retail totaled 329,800 units with 4% cumulative growth.

The MPV market's high growth phase has transitioned to low growth trends. GL8 demonstrated strong recent performance, while BYD, Denza, and GAC MPVs showed exceptional results, with Japanese MPV advantages rapidly declining.