MG cars produced by Shanghai Automotive Industry Corp (SAIC) are parked next to the car carrier Anji Ansheng to be shipped in east China's Shanghai on May 15, 2025. (Xinhua/Fang Zhe)

Retail sales of passenger vehicles in China reached 2.084 million units in June, up 18.1 percent year-on-year and up 7.6 percent month-to-month, according to data released by the China Passenger Car Association (CPCA) on Tuesday.

The CPCA attributed the robust growth to the expanded and intensified rollout of the country's fresh round of large-scale equipment upgrades and trade-ins of consumer goods, as well as subsidy policies, which delivered a notable "policy dividend" and effectively fueled market demand.

An expert noted that the growth of the passenger vehicle market has been largely driven by supportive government policies and improved market confidence, with consumer enthusiasm remaining high.

Government-led initiatives such as vehicle scrappage and trade-in programs have effectively boosted growth in the auto market. New-energy vehicles (NEVs) continue to perform strongly, while traditional fuel-powered cars have regained momentum following recent adjustments, Cui Dongshu, secretary-general of the CPCA, told the Global Times on Tuesday.

China's passenger vehicle exports showed strong resilience in June, with a total of 480,000 units, including both complete vehicles and completely knocked down (CKD) kits, shipped abroad, up 23.8 percent year-on-year, the CPCA said. In the first half of the year, passenger vehicle exports totaled 2.479 million units, up 6.8 percent year-on-year.

In June, NEV exports reached 198,000 units, a year-on-year increase of 116.6 percent. NEVs accounted for 41.1 percent of total passenger vehicle exports for the month, up 17 percentage points from the same month last year.

The association noted that this achievement reflects the growing scale advantage and expanding market demand for China's NEVs. An increasing number of domestically manufactured NEV brands are entering overseas markets, with their recognition and acceptance abroad continuing to rise.

Exports of Chinese domestic brands reached 410,000 units in June, a 28 percent year-on-year increase and a 10 percent month-on-month rise. By contrast, exports of joint venture and premium brands totaled 62,000 units, a 9 percent decline year-on-year.

Retail sales of major joint venture brands reached 510,000 units in June, up 5 percent year-on-year and 6 percent month-on-month, according to the association.

Cui noted that in June, joint venture brands, including FAW Toyota, SAIC-GM, and SAIC Volkswagen, posted solid performances, standing out as key drivers of overall market growth.

Joint venture automakers have rebounded following last year's adjustments, while domestic brands have continued to post strong growth, underscoring the resilience and vitality of China's auto market, Cui said.

Driven by national consumption-boosting policies, many provinces and cities have rolled out and steadily implemented supporting local measures. Coupled with the full-scale resumption of on-site events such as auto shows, the passenger vehicle market posted a strong performance in June.

According to data from the Ministry of Commerce, as of May 31, a total of 4.12 million applications had been submitted for vehicle trade-in subsidies, the association said.

Based on monthly estimates, applications reached 1.23 million in June, representing a 13 percent increase from 1.09 million in May.