China to beat Japan

Carmakers from China are set to become the world’s largest sellers of new vehicles in 2025 for the first time in history, overtaking Japanese manufacturers.

According to Nikkei Asia estimates, which are based on company disclosures from January to November 2025 and data from S&P Global Mobility, Chinese marques were expected to sell about 27 million vehicles globally last year. That’s a 17 per cent increase from 2024.

The report indicates that Japanese brands, which have held the worldwide sales crown for more than two decades, will drop to second place. Their combined sales are projected to remain steady at some 25 million units.

Global sales of motor vehicles have historically been defined by the rivalry between the US and Japan, with the latter reaching a peak of nearly 30 million units in 2018. However, the landscape has shifted rapidly. As recently as 2022, Chinese carmakers trailed their Japanese counterparts by eight million vehicles.