China Automotive Logistics Market Size

China Automotive Logistics Market Analysis

The China Automotive Logistics Market size is estimated at USD 52.58 billion in 2024, and is expected to reach USD 70.22 billion by 2029, growing at a CAGR of 5.96% during the forecast period (2024-2029).

The COVID-19 pandemic brought significant changes in the automotive industry in China. Preliminary data from the China Passenger Car Association (CPCA) finds that passenger car sales dipped 80% during the pandemic. This negatively impacted the automotive logistics market. However, the Chinese government has taken steps to bounce back automobile consumption. These steps include providing fiscal and taxation support, speeding up the elimination of obsolete diesel trucks, and optimizing second-hand vehicle trading channels. Such initiatives will keep the market afloat.

China continues to be the world’s largest vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025. In addition, Chinese automobile sales overseas have witnessed significant growth over the years, supported by surging global interest in electric vehicles, further creating the opportunity for China to emerge as the leading global supplier, surpassing Japan. Also, Chinese automobiles carry a competitive advantage in overseas markets. For instance, in the United Kingdom, the Volkswagen ID.3 has a starting price of more than USD 47,600, whereas the China brand MG 4 is SAIC's latest compact electric car, with a starting price of less than USD 34,700, which further results in sales growth across other regions. This growing automotive sector, increasing vehicle sales, and exports are expected to drive the country's automotive logistics market.