China's NEV Sales Proportion Surpasses 60 Percent in July 2026

Sales of new energy vehicles (NEVs) in China surpassed 60 percent of the country’s total monthly new car sales for the first time in July 2026, while the cumulative proportion of NEVs in the first seven months of 2026 also exceeded 50 percent, according to industry data released on Wednesday (12/8).

In July alone, NEV production and sales reached more than 1.57 million units and 1.56 million units respectively, increasing 26.8 percent and 23.7 percent year-on-year (yoy), according to data from the China Association of Automobile Manufacturers (CAAM).

In the NEV segment, both production and sales of pure electric vehicles exceeded 1 million units in July, rising more than 30 percent compared to the previous year, the data showed.

In the first seven months of 2026, NEV production and sales reached 9.01 million units and 9 million units respectively, both increasing nearly 10 percent year-on-year.

Overall, car production and sales in July were recorded at 2.57 million units and 2.58 million units respectively, down slightly both month-on-month and year-on-year. CAAM Deputy Secretary-General Chen Shihua attributed this decline to seasonal factors.

July is typically a sluggish period for automotive sales, Chen said. He also noted that various factors weighed on market performance, including the earlier release of demand due to first-half sales promotions, prolonged extreme heat, and typhoons and flooding in several regions.

Vehicle exports maintained strong momentum in July, breaking through 1.04 million units, up 81.3 percent year-on-year. Notably, NEV exports in that month surged 1.5 times to 553,000 units, accounting for more than half of total vehicle exports for two consecutive months.

In the January-July period, China’s vehicle exports reached a total of 6.14 million units, up 66.8 percent, including 2.91 million NEV units which recorded a 1.2-fold increase.

Since the beginning of the year, persistently high oil prices have driven up the daily costs of using fuel-powered vehicles, thereby strengthening the economic advantages of NEVs and boosting their sales.

Meanwhile, the overall product competitiveness of NEVs has continued to improve. Chinese automotive manufacturers have boosted technological innovation and research and development investment, achieving sustained progress on aspects of primary concern to consumers, including safety and driving range. The increasingly diverse NEV product lineup has also helped optimise market growth potential.

The latest data from China’s National Energy Administration shows that total charging facilities for electric vehicles reached 23.06 million by the end of June, up 43.2 percent year-on-year.

China is targeting an increase in the proportion of NEVs in the total vehicle fleet to 30 percent by 2030, according to the action plan for achieving peak carbon emissions during the 15th Five-Year Plan period (2026-2030).