The economy of China continued its recovery trajectory in 2024, China's GDP grew by 5.3% for the full year, slightly surpassing the 2023 growth rate. According to the China Association of Automobile Manufacturers, total vehicle production and sales in China reached 31.5 million units each, marking an increase of 4.6% and 4.7%, respectively, compared to 2023. This achievement firmly secured China's position as the world's largest automotive market for the 16th consecutive year, with 2024 marking the second consecutive peak in sales since 2014.

The passenger vehicle segment remained the backbone of China's automotive industry, accounting for approximately 87% of total vehicle sales. Passenger car sales grew by 5.2% to 27.4 million units, reflecting steady demand in the domestic market. Sedans and sports utility vehicles ("SUVs") continued to dominate the passenger vehicle market, with SUVs maintaining their popularity due to versatility and spaciousness. Compact and mid-size SUVs, in particular, saw strong demand, especially among young consumers and families. Meanwhile, sedans retained their appeal in cities due to fuel efficiency and ease of maneuverability.