China’s passenger new energy vehicle (NEV) retail sales experienced a slight dip in July, falling back below the 1 million mark. The China Passenger Car Association (CPCA) reported that retail sales of NEVs totaled 987,000 units last month, showing a 12.0 percent year-on-year increase but a significant 11.2 percent decrease from June.
Breaking down the sales figures, battery electric vehicles (BEVs) continued their growth trend with retail sales reaching 607,000 units in July, marking a 24.5 percent year-on-year increase. BEVs accounted for 61.5 percent of total NEV retail sales, up 2 percentage points from the previous month.
On the other hand, plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs) saw a combined total of 380,000 units in July, representing a 4.04 percent year-on-year decrease. This decline in hybrid vehicle sales is noteworthy as it marks the first-ever year-on-year decrease in this segment since monitoring began in 2020.
Further analyzing the data, PHEVs excluding EREVs accounted for 278,000 units of retail sales in July, contributing 28.2 percent of NEV retail sales. Meanwhile, EREVs accounted for 102,000 units, making up 10.3 percent of NEV retail sales.
In terms of overall passenger vehicle sales in China, including sedans, SUVs, and MPVs, the total reached 1.826 million units in July, reflecting a 6.3 percent year-on-year increase but a 12.4 percent decrease from the previous month.
The penetration rate of NEVs in China’s retail market was 54.0 percent in July, showing a 2.7 percentage point increase year-on-year and a 0.7 percentage point increase from the previous month. The penetration rate of NEVs in retail sales was highest for domestic brands at 74.9 percent, followed by luxury brands at 30 percent, and mainstream joint ventures at 6.7 percent.
In wholesale sales, Chinese domestic brands led the way with a 67.4 percent penetration rate for NEVs, followed by luxury brands at 43.5 percent and mainstream joint-venture brands at 6.6 percent.
Despite the slight dip in retail sales, the export market for passenger NEVs from China saw a significant uptick in July. A total of 213,000 passenger NEVs were exported, representing a 120.4 percent year-on-year increase. BEVs continued to dominate the export market, accounting for 65.3 percent of NEV exports.
Overall, the NEV market in China continues to show resilience and growth, with BEVs driving the momentum while hybrid models experience a temporary setback in sales. The export market also presents a promising opportunity for Chinese NEV manufacturers to expand their global presence.
