China’s automobile industry recorded a sharp month-on-month surge in both production and sales in March, reflecting strong market recovery and rising demand.

According to data released by the China Association of Automobile Manufacturers (CAAM), total automobile output reached 2.92 million units, while sales stood at 2.9 million units during the month. This marks a significant increase of 74.4% in production and 60.6% in sales compared to February.

The growth was largely driven by the rapid expansion of the new energy vehicle (NEV) segment. NEV production climbed to 1.23 million units, with sales slightly higher at 1.25 million units, highlighting strong consumer preference for electric and hybrid vehicles.

For the first quarter of the year, China’s automobile production totaled 7.04 million units, while sales marginally exceeded this at 7.05 million units, indicating stable supply-demand dynamics in the market.

During the same period, NEV output reached 2.97 million units, and sales stood at 2.96 million units, underlining the segment’s growing contribution to the overall auto industry.

Looking ahead, industry experts remain optimistic about continued growth. Chen Shihua, Deputy Secretary-General of CAAM, noted that supportive government policies — including large-scale equipment renewal initiatives and consumer goods trade-in programs — are expected to further stimulate demand.

Additionally, the upcoming Beijing Auto Show is likely to introduce a wave of new vehicle launches, which could sustain market momentum and boost automobile consumption in the second quarter.