Electric vehicles command 62.9% of Chinese market in May 2026

New energy vehicles (NEVs) recorded a retail market share of 62.9% in China in May 2026. Reported by Carnewschina on Wednesday (10/6) local time, this achievement marks a new record despite various electric vehicle incentives and subsidies beginning to be reduced by the government.

Data from the China Passenger Car Association (CPCA) showed total passenger car sales in China in May 2026 reached 1.51 million units. That figure is down 22.1% compared to the same period last year, but up 9.2% compared to April 2026. Cumulatively, vehicle sales from January to May 2026 were recorded at 7.099 million units, a year-on-year decrease of 19.5%.

Although the overall automotive market experienced a decline, sales of internal combustion engine (ICE) vehicles were the biggest contributor to the weakness. The market share of conventional vehicles fell to just 37.1%, or around 560,000 units in May, contributing to 82% of the total annual sales decline. The Chinese economic media outlet The 21st Century Economic reported that the shift of consumers from fuel-powered vehicles to electric vehicles is accelerating due to energy and fuel price fluctuations.

CPCA statistics include pure electric vehicles (BEV), plug-in hybrids (PHEV), and extended-range electric vehicles (EREV) within the NEV category. Amid the domestic market slowdown, the premium electric vehicle segment continued to show positive performance. The Volkswagen ID. Era 9X electric SUV recorded deliveries of 5,004 units during May. Meanwhile, the Nio ES8 sold 11,472 units. The premium crossover Zeekr 9X, produced by Zeekr, recorded consumer vehicle deliveries of 9,058 units.

The growth of electric vehicles has also become a new engine for joint ventures between global manufacturers and Chinese producers. Some of these include SAIC Volkswagen, GAC Toyota, and BMW Brilliance. CPCA noted that electric vehicle sales from these joint ventures increased by 51% compared to the previous year. Conversely, sales of petrol-engine vehicles fell by 41% in the same period.

Amid domestic market pressures, exports have now become the main focus for Chinese automotive manufacturers. CPCA data showed new energy vehicles accounted for 54% of China’s total automotive exports in May 2026, marking the highest record in history. China’s largest electric vehicle manufacturer, BYD, recorded overseas sales of 160,644 units in May 2026. That figure equals 42% of BYD’s total sales, which reached 382,476 vehicles. Meanwhile, Chery recorded an even higher export volume, at 181,871 units. This amount contributed 73.39% to Chery’s total sales during the same month.