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China's vehicle sales surged by 34.4% year-on-year to 2.129 million units in February 2025, rebounding sharply from a 0.6% decline in the previous month, which was the first drop in four months, according to data from the China Association of Automobile Manufacturers (CAAM). The sharp increase came amid a low base effect last year when the Lunar New Year holiday fell in February. New energy vehicles (NEVs) soared by 87.1% in February to 892 thousand units, accounting for 41.9% of total new vehicle sales last month. On a monthly basis, total car sales fell by 12.2% in February. For 2025, car sales are expected to grow by 4.7% to reach 32.9 million units, with NEVs predicted to grow by 24.4% to 16 million units. Last year, total vehicle sales rose by 4.5% to 31.436 million units, easing sharply from a 12% surge in 2023.