Gasgoo Munich- China's Ministry of Public Security's latest data shows national motor vehicle population had reached 469 million units by the end of 2025. Automobiles accounted for 78% of that total, reaching 366 million units. The number of motor vehicle drivers increased in tandem to 559 million, with automobile drivers reaching 525 million, further narrowing the gap between the driver pool and the vehicle fleet.
Over the past year, incremental growth remained steady. In 2025, newly registered motor vehicles nationwide reached 35.35 million units — marking the eleventh consecutive year exceeding the 30 million mark. Specifically, new automobile registrations totaled 26.19 million units, comprising the majority of the annual increase.
The Chinese auto market has shifted from a period of rapid growth to a stable, high-volume phase. Annual sales of 30 million units have become the norm, but industry dynamics have changed.
Previously, competition focused on new users. Now, the focus is unlocking value in the massive stock of 366 million vehicles. Opportunities lie not only in selling new cars but also in expanding further: electrifying the existing fleet, upgrading smart hardware and software, utilizing the vast aftermarket ecosystem, and facilitating active used car circulation.
Therefore, attention should extend beyond new car sales. Key indicators for the future include the potential for EV penetration within the existing stock, the role of smart driving in vehicle replacement, and innovation in aftermarket services. The market has officially shifted from competing for incremental growth to a phase characterized by stock operation and user experience improvements.
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