China’s auto industry extended its rebound in the first half of 2025, with nationwide vehicle production climbing 12.5% from a year earlier to 15.62 million units and sales rising 11.4% to 15.65 million, according to data released by the China Association of Automobile Manufacturers. It is the first time both metrics have exceeded 15 million units in the January-to-June period. New-energy vehicles remained the main driver of growth. Output of battery-electric and plug-in hybrid models reached 6.97 million units, up 41.4% year-on-year, while sales rose 40.3% to 6.94 million. In June alone, NEV sales accelerated 26.7% from a year earlier, outpacing the broader market and underscoring robust consumer demand and continued policy support. Overall vehicle sales in June increased 13.8% year-on-year, an improvement on May’s 11.2% pace. Passenger-car exports also stayed buoyant, jumping 23.8% to 480,000 units, as Chinese manufacturers continued to seek overseas outlets amid intensifying domestic competition. Industry officials expect the market to cool seasonally in July but say the sector’s first-half performance lays a solid foundation for the rest of the year.