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International News From the Field: EVs Charge China’s Auto Growth

Aug 05, 2025

On July 10, China's Association of Automobile Manufacturers (CAAM) released several economic indicators of China's automobile industry, which showed double-digit year-over-year growth in the first half of 2025. From January to June, the automobile market remained strong, with production and sales exceeding 15 million units, achieving a high growth rate of more than 10% YOY. CAAM noted that the Chinese market has significantly improved due to the continued impact of the automobile trade-in policy.  

The EV sector continues to grow rapidly, increasing its market share and accelerating the industry’s transformation and upgrade. Specifically, the production and sales of electric vehicles (EVs) reached 6.97 million units and 6.94 million units, respectively, marking dramatic increases of 41.4% and 40.3% YOY sales and accounting for 44.3% of total new vehicle sales. These results are from China's recent dynamic and promising EV policies, which have promoted the production of new electric vehicles, generating industry growth.  

Total vehicle exports from January to June this year amounted to 3.08 million units, reflecting a 10.4% YOY increase. EV exports alone reached 1.06 million units, representing a remarkable 75.2% increase from the previous year. 

Looking ahead to the second half of the year, the Chinese government intends to implement new policies to diversify new product offerings in the automobile market. This ongoing diversification fosters continued growth in automobile consumption and maintains healthy, stable operations. 

Additionally, on July 3, the China Machine Tool and Tool Builders' Association released its latest statistics on the total import and export volume of machine tool products from January to May. The total volume amounted to $13.43 billion, reflecting a YOY increase of 5.2%. This includes an import value of $4.19 billion, a YOY decrease of 0.7%, and an export value of $9.24 billion, a YOY increase of 8.1%. The import value of metal cutting machine tools was $2 billion, unchanged from the previous year, while the export value was $2.43 billion, a YOY increase of 10.7%. The import value of metal forming machine tools stood at $250 million, representing a YOY decline of 17.2%, while the export value soared to $1.34 billion, reflecting a YOY increase of 36.2%. 

The June manufacturing PMI, released by the China National Bureau of Statistics on June 30, was 49.7%, signaling a rebound for two consecutive months as manufacturing prosperity continues to improve. The NBS also reports a 5.3% YOY increase in China's GDP for the first half of 2025. 

A few recently announced projects and investment news items are listed below: 

  • Jiangxi Dong Chi New Energy will invest $712 million in a new facility. Plans include purchasing equipment to construct and set up a sodium-ion battery production project, with production set to start in the next 24 months. 

  • Shanghai Genori Technology will invest $24 million to establish an R&D center for semiconductor equipment components, aiming to become one of the industry's leading manufacturers. 

  • Wuhu Deheng Automobile Equipment will invest $137 million to develop super-high-strength heat-forming components for body-in-white processes. 

  • Veck Environmental Control Equipment will invest $19 million to set up a new fin production line for central air conditioning systems. 

  • Karlssonspools will invest $11 million to produce automotive components, including 1.8 million units of hydraulic valves and 500,000 kits of parts for EVs. 

  • Wuhu Acteco Powertrain will invest $44.5 million to build a prototype production line for hybrid transmissions. The line will have an annual capacity of 300,000 hybrid transmissions and 450,000 transmission housings. 


For more information, please contact Fred Qian at fredqian@AMTchina.org, and to learn how to take advantage of these opportunities, click here.

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Author
Fred Qian
General Manager - Shanghai Technology and Service Center of AMT
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