China’s new energy vehicle (NEV) retail sales in May showed a significant year-on-year increase, surpassing 1 million units for the first time this year. According to data released by the China Passenger Car Association (CPCA), passenger NEV retail sales totaled 1.021 million units in May, marking a 28.2 percent increase compared to the same period last year.
Among the NEV sales in May, battery electric vehicles (BEVs) accounted for 607,000 units, representing a 22.6 percent year-on-year increase. BEVs made up 59.5 percent of total NEV sales, slightly down from the previous month. Additionally, plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs) combined for 414,000 units in retail sales, showing a 34.1 percent year-on-year increase.
Overall, China’s passenger vehicle market, including sedans, SUVs, and MPVs, saw retail sales of 1.932 million units in May, up 13.3 percent year-on-year. The penetration rate of NEVs in retail sales reached 52.9 percent, a 6.2 percentage point increase compared to the previous year.
In terms of brand penetration, domestic brands led the way with a 74.6 percent share of NEV retail sales, followed by luxury brands at 25.0 percent and mainstream joint-venture brands at 6.4 percent. Wholesale sales of passenger NEVs reached 1.216 million units in May, with a record-breaking NEV penetration rate of 52.6 percent.
The export market for passenger NEVs also saw growth, with 200,000 units exported from China in May, up 80.9 percent year-on-year. BEVs accounted for 66 percent of NEV exports, with A0-class and A00-class BEVs making up 39 percent of total exports.
Looking at specific brands, Tesla’s retail sales in China experienced a 30 percent year-on-year decrease in May, totaling 38,588 units. However, in the first five months of the year, Tesla’s retail sales in the Chinese domestic market reached 201,926 units, showing a 7.82 percent year-on-year decline.
Overall, the NEV market in China continues to show strong growth and resilience, with both domestic and international brands contributing to the increasing adoption of electric vehicles in the country.
