New energy vehicles come off the assembly line at the final assembly workshop of Chang'an Auto Digital Intelligence Factory, in Yubei District of southwest China's Chongqing, March 6, 2025. (Photo/Xinhua)

Chongqing - Chongqing's auto market posted steady growth in the first half of 2025, with record-setting progress in new energy vehicle (NEV) adoption.

According to the Chongqing Automobile Business Association, on August 5, from January to June, the city sold 224,800 passenger vehicles, up 8.7% year-on-year. NEV sales rose 30.7% to 124,300 units, pushing penetration to an all-time high of 54.3%, signaling a major shift in consumer preference and a key step toward green mobility.

Sedans led growth among major vehicle segments, with 95,900 units sold, up 10.3% year-on-year. SUV sales totaled 123,000 units, rising 7.4%, while MPV sales increased 9.7% over the same period.

Chinese brands have dominated the local market, selling over 167,000 units—a 21.2% year-on-year increase—accounting for 73.3% of total passenger vehicle sales. In contrast, some joint-venture brands faced mounting pressure from rising competition and structural changes.

Despite the rapid expansion of NEVs, traditional fuel vehicles remained resilient, making up 43% of total sales. Changan, Geely, and SAIC Volkswagen continued to lead in this segment. Meanwhile, some joint-venture brands achieved notable results by adjusting their marketing strategies—FAW Toyota and Hyundai saw their sales grow by 31.7% and 66.1% year-on-year in the first half.

The NEV market saw intensified competition. BYD remained the top-selling brand, though rising local players like Deepal and Geely Galaxy gained significant ground, ranking second and third, respectively. Deepal posted a standout performance, with sales soaring 78.4% year-on-year. Other emerging brands such as XPeng, Leapmotor, Avatr, and Xiaomi also saw strong growth. The most popular NEV models in the city were the Deepal S07, Xiaomi SU7, and Tesla Model Y.

The association analyzed that steady macroeconomic recovery and effective consumer incentives contributed to the market's stable performance in the first half. While growth in the second half may face some pressure due to a high comparison base and the implementation of vehicle trade-in policies. In the long run, as NEV offerings diversify and technology advances, Chongqing's auto market is set to see further structural upgrades and continue on a path of high-quality development. A new phase of market reshaping may be underway.