Guangzhou (JLC), October 14, 2025--China's sales of new energy vehicles (NEVs) jumped in the first three quarters (Q1-Q3) of 2025, amid the implementation of purchase tax exemptions and trade-in subsidies.
The country sold a total of 11.23 million units of NEVs in the period, a surge of 34.9% from the corresponding period of 2024, data from the China Association of Automobile Manufacturers (CAAM) shows. The NEV sales accounted for 46.1% of China's total car sales.
In breakdown, domestic sales of NEVs reached 9.47 million units in Q1-Q3, soaring by 28.1% from the same quarters last year. Meanwhile, exports of NEVs amounted to 1.76 million units, shooting up by 89.4% year on year, the CAAM data indicates.
To promote the development of the NEV industry, China has exempted NEVs from purchase tax since 2014 and extended the policy multiple times, with the latest covering through 2027.
For NEVs purchased before the end of 2025, they will be exempted from purchase tax amounting to as much as CNY30,000 per vehicle, according to a statement jointly released by the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology in June 2023.
However, for NEVs bought in 2026-2027, the tax exemption will be halved, with the reduction to not exceed CNY15,000 per car. Consumers who are considering buying NEVs in the next few years may choose to make early purchases to enjoy better discounts.
To further drive up NEV sales, China has also been actively supporting the car trade-in program. In January 2025, the Ministry of Commerce, along with seven other departments, issued a notice outlining the car trade-in subsidy scheme for 2025.
Under certain conditions, the government will incentivize consumers who purchase NEVs or new internal combustion engine (ICE) vehicles after scrapping outdated cars or transferring vehicle registrations.
In the meantime, the country also offers a higher subsidy for buying new energy trucks.
Additionally, some local governments provide local subsidies for NEV purchases, which also contributed to the gain in China's NEV sales.
