Chinese automakers are set to become the world's largest sellers of new vehicles in 2025, overtaking Japanese manufacturers for the first time, according to a report by Nikkei Asia, a major Japanese financial newspaper, on Tuesday.

According to an estimate from Nikkei Asia, based on company disclosures from January to November 2025 and S&P Global Mobility data, Chinese automakers are projected to sell about 27 million vehicles worldwide this year, up 17 percent from the previous year.

Meanwhile, the combined sales of Japanese automakers are expected to remain flat at around 25 million vehicles, meaning Japanese automakers – who have held the top spot in global sales for more than 20 years – are set to slip to second place, according to the report.

Global auto sales were once dominated by competition between Japan and the US, with Japan peaking at nearly 30 million vehicles sold in 2018, according to the article.

In 2022, Chinese automakers trailed Japanese automakers by about 8 million vehicles, but China may overtake them in just three years, it added.