Sales of BYD Dolphin and Yuan Halved, Volkswagen and Toyota Dominate ICE Market

According to data from the China Passenger Car Association, retail sales of passenger cars nationwide reached 1.826 million units in July 2025, a year-on-year increase of 6.3%. Among them, retail sales of domestic brands were 1.21 million units, up 14% year-on-year, accounting for 65.9% of the market share, an increase of 4 percentage points year-on-year. Mainstream joint venture brands sold 450,000 units, up 1% year-on-year, with a market share of 24.5%. Luxury car retail sales were 170,000 units, down 20% year-on-year, accounting for 9.3% of the market share.

Analyzing the list of the top 40 best-selling fuel-powered vehicle models in July, there are several noteworthy pieces of information that reveal some changes in the fuel vehicle market.

Joint venture-led

Germany and Japan tied

Among the top 40 fuel-powered vehicle models, joint venture brands occupy 27 spots, while domestic brands hold 13. Among the 27 fuel-powered models with sales exceeding 10,000 units, joint venture brands account for 17, and domestic brands for 10. Overall, in the fuel vehicle market, joint venture brands currently maintain a clear advantage.

Among joint venture brands, there are 13 German and 13 Japanese models, making it an even split. Among the 13 Japanese models, Toyota dominates with 8 spots, surpassing Honda's 3 and Nissan's 2. Toyota's strong brand presence has also had a direct impact on the market, with prices of Corolla and Levin adjusting over the past two months, including the Camry. The Camry has consistently held the title of the best-selling fuel-powered midsize sedan for several months, achieving sales of 17,719 units in July.

"The sales of 'Two Yi' halved."

Discounts of up to 50,000 yuan.

The Xuan Yi and Lang Yi have been leading in the gasoline car market because they are affordable, fuel-efficient, and offer a wide range of models, with both new and old models being sold simultaneously. Especially Lang Yi, which, after its upgrade, will have four models available for sale at the same time. In July, the sales of both Yi models exceeded 23,000 units each, which is about half of their peak sales of over 40,000 units. Discounts can reach over 50,000 yuan. The starting price for the classic Xuan Yi is now less than 60,000 yuan.

Honda's "Concerns":

PHEVs are not selling well, and it is difficult to maintain their market share.

Among the 27 fuel vehicle models with sales exceeding 10,000 units, German and Japanese models account for a total of 16 (9 German and 7 Japanese). Among these, Volkswagen and Toyota together have 14 models, holding an overwhelming advantage. Notably, none of Honda's models exceeded sales of 10,000 units, with the best performer, the CR-V, selling 9,873 units that month. Honda is facing an accelerating decline in sales.

Not only that, sales of PHEV models from Guangben and Dongben in the new energy sector have been disappointing, with the Accord PHEV selling only about 10 units per month. Fortunately, the fuel version of the Accord still enjoys a good market reputation, and like the CR-V, these two models maintain sales of over 9,500 units.

Joint Venture Compact SUV:

Price for volume, cash discount starting from 50,000.

Joint venture compact SUVs, including RAV4, Tiguan L, Tayron, Envision PLUS, CR-V, and Breeze, can achieve monthly sales of over 8,500 units primarily due to low prices, with cash discounts starting at 50,000 yuan. For example, the Tayron 1.5T enjoys a discount of 69,000 yuan, and if you trade in, there's an additional subsidy of over 14,000 yuan from the government or manufacturer. The Envision PLUS P 2.0T Platinum Edition offers a discount of up to 65,000 yuan, although it comes with various reductions in features.

It can be observed that among the American brands, only the Envision PLUS made the list, while Buick's sedans and the GL8 did not. The decline of the Buick brand has become very evident.

Geely, Changan, and Chery strengthen.

Among the top 40 best-selling models, Geely has 5 models, Changan has 3, and Chery has 2. Among them, the Geely Boyue L ranks third with 21,046 units sold, making it the best-selling gasoline vehicle among domestic brands. In addition, Geely also has four other models—Xingyue L, Xingrui L, Emgrand, and Bin Yue—each with monthly sales exceeding 10,000 units. Geely develops both gasoline and electric vehicles simultaneously, maintaining a balanced growth strategy, allowing it to advance or retreat flexibly and hold a strategic initiative.

The list does not include the phenomenal star model Haval H6, but instead features the Haval Big Dog, which is somewhat surprising. The discount for the Big Dog is around 28,000 to 29,000 yuan, and the new 26 models are introduced with added features at no extra cost. According to the salespeople, "You can buy the Big Dog with your eyes closed."

Joint venture minor revision and reduction in configuration.

Independent brands add features without increasing the price.

By studying the best-selling car models, we can observe the following phenomenon: The prices of gasoline cars are currently very low, with significant discounts. However, only domestic brands are heavily investing in technology to iterate their products (including upgrades in size and features), while joint venture brands are mostly making minor modifications and reducing features. This includes both German and Japanese brands. For example, the Volkswagen Tayron has reduced its features to the extent that even a spare tire has become an optional item, requiring an additional 200 yuan if you want it, which shows the extent of the reduction in features.

You will find that the discounts for domestic brands are relatively less than those for joint ventures. For example, the discount for the Arrizo 8 is about 22,000 to 28,000 yuan, and for the Geely Xingrui, it's 17,000 to 18,000 yuan. However, the discounts for comparable joint venture models like the Sylphy can reach up to 45,000 yuan, the Lavida up to 50,000 yuan, and the Sagitar up to 53,000 yuan. Consumers will make their own judgments, and market discounts also reflect reputation and technical strength.