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In 2024, overall vehicle sales in China amounted to almost million units, an increase of *** percent compared to the previous year. For the fourth year in a row, sales in 2022 showed an upward trend. 

Vehicle sales growth in China

With a sales volume of approximately million motor vehicles, China was the worlds’ largest market for automobiles. Vis-à-vis U.S. car market in 2021, about eleven million units more had been sold in China. This boom in domestic market demand could be explained by China’s spectacular economic growth, which in terms is expressed by the formation of a prosperous middle class.

China as a major car manufacturer

China had also become the world’s biggest automobile producer since 2017, with almost ** of total global passenger vehicles produced in mainland China. The economic reforms of the early 1980s required foreign carmakers to form joint ventures with domestic auto producers in China. Over the past decades, a couple of large independent domestic auto brands have emerged. However, domestic carmakers generally lack technological know-how and market access when compared to their foreign rivals. As a result, foreign automakers generally enjoy larger market shares and higher profit margins in China. Overseas, Chinese autos tend to be sold to other developing countries where selling prices seem to a major determinant to consumers’ decisions.