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Invest Shanghai
Shanghai's auto industry demonstrated a strong rebound in July, with both production and sales showing positive growth, driven by the rise of new energy vehicles and ongoing industrial transformation.
Robust output from leading manufacturers, combined with favorable consumer policies, fueled a remarkable resurgence, defying traditional seasonal trends.
July retail sales in the automotive sector reached 15.85 billion yuan ($2.22 billion), up 5 percent year-on-year and marking the first positive growth this year.
Statistics from the Shanghai Municipal Bureau of Statistics showed that in the first seven months of 2025, the total output value of Shanghai's auto manufacturing industry reached 391.12 billion yuan, close to the historical high of 397.7 billion yuan recorded in the same period.
The automobile industry contributed 18 percent of Shanghai's total industrial output during the period.
SAIC Motor, a cornerstone of Shanghai’s automotive sector, was a major driver of the rebound. In July, SAIC sold 338,000 vehicles, up 34.2 percent year-on-year, with cumulative sales from January to July exceeding 2.39 million units, representing a year-on-year increase of 15 percent.
Wang Xiaoqiu, chairman of SAIC Motor, said at the June shareholders' meeting that the company aims to regain global leadership in vehicle sales by 2027, targeting a market share of at least 70 percent in China, with self-owned brands and intelligent electric products each making up more than 60 percent of its total sales.
Government incentives, including new energy vehicle licenses and trade-in subsidies, have also stimulated consumer demand.
A sales manager at an electric vehicle brand, surnamed Chang, said that the company's new car deliveries increased by 25.2 percent in the first seven months compared with last year, attributing the success to policy adjustments implemented since the end of the previous year.
New model releases and intensified competition among automakers also played a key role. Several automakers planned to unveil new vehicles, anticipating strong sales during the traditional "golden September and silver October" peak season.
Dealerships accelerated inventory clearance this summer in preparation for upcoming launches. Hu Bin, manager of an IM Motors store, said that the outlet sold more than 70 cars in July, nearly one third more than in a typical month, boosted by anticipation of a new model debut in August.
The market outlook remains upbeat for the second half of the year as many Shanghai automakers begin presales of new models.
SAIC and Huawei jointly launched the Shangjie H5, which received over 50,000 orders within 18 hours of presales opening on Aug 25.
Tesla’s updated Model Y is also expected to drive further growth once deliveries begin in September.