China overtakes Japan as world's largest car seller in 2025

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

This watershed moment was highlighted in a report published on Tuesday by Nikkei Asia, a major Japanese financial newspaper.

According to Nikkei estimates—based on company disclosures from January to November 2025 and data from S&P Global Mobility—Chinese automakers are expected to sell approximately 27 million vehicles worldwide this year. This figure marks a significant 17 percent increase from the previous year.

The report indicates that Japanese automakers, who have held the global sales crown for over two decades, will drop to second place. Their combined sales are projected to remain steady at around 25 million vehicles, failing to match the explosive growth seen by their competitors from China.

Global auto sales were historically defined by the rivalry between Japan and the US, with Japan reaching a peak of nearly 30 million vehicles sold in 2018.

However, the landscape has shifted rapidly. As recently as 2022, Chinese automakers trailed their Japanese counterparts by a massive margin of 8 million vehicles. According to the report, China has managed to close that gap and take the lead in just three years.