Chinese automakers sold nearly 27 million vehicles globally in 2025, surpassing Japan's roughly 25 million and ending a 25-year Japanese dominance of worldwide automobile sales. The shift has been driven largely by China's aggressive pivot to new energy vehicles (NEVs — battery-electric and plug-in hybrid cars), which now account for nearly 60% of the Chinese market, compared to under 3% in Japan, with BYD leading NEV sales globally for the fourth consecutive year. While Chinese manufacturers have claimed the volume crown, analysts note that key challenges remain — including building brand prestige, overcoming regulatory barriers in Western markets, and closing the per-vehicle profitability gap with established rivals such as Toyota.