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China's vehicle sales grew by 10.5% year-on-year to 3.489 million units in December 2024, slightly easing from an 11.7% rise in November, according to data from the China Association of Automobile Manufacturers (CAAM). This marked the third straight month of increase in vehicle sales, following the launch of government policy measures aimed at boosting the auto market. New energy vehicles (NEVs) surged by 34% in December to a new record high of 1.596 million units, as the year-end peak season continued. For the full year of 2024, total vehicle sales rose by 4.5% to 31.436 million units, slowing sharply from a 12% jump in 2023. Meanwhile, domestic NEV sales surged by 39.7% in 2024, with total NEV sales rising 35.5% to 12.866 million units, contributing to 40.9% of total sales. On a monthly basis, car sales rose by 5.2% in December. For 2025, car sales are expected to grow by 4.7% to reach 32.9 million units, with NEVs predicted to see a 24.4% gain to 16 million units.