China's NEV sales reached 1.561 million units in July 2026, up 23.7% YoY, with penetration exceeding 60% for the first time. NEV exports surged 145.5% to 553,000 units, pushing total vehicle exports above 1 million for a second consecutive month.
Data Highlights: A Milestone for New Energy Vehicles
In July 2026, China's new energy vehicle (NEV) sales reached 1,561,000 units, up 23.7% year-on-year, accounting for 60.4% of total new vehicle sales—breaking the 60% threshold for the first time in CAAM's data history. Cumulative NEV sales for the first seven months reached 9,007,000 units, with the penetration rate also exceeding 50% for the first time.
By powertrain type:
- Battery electric vehicles (BEV) sold 1,072,000 units, up 32.2% YoY, with output topping 1 million for a second consecutive month
- Plug-in hybrid vehicles (PHEV) sold 489,000 units, up 8.4% YoY
NEV production reached 1,576,000 units, up 26.8% YoY.
Export Engine: Two Consecutive Months Above 1 Million
With the domestic market under pressure, exports have become the core growth engine for China's auto industry.
In July, China exported 1,043,000 vehicles, up 81.3% YoY and 0.6% MoM, topping 1 million for a second straight month:
- NEV exports reached 553,000 units, surging 145.5% YoY and 5.7% MoM
- NEVs accounted for over 50% of total exports for a second consecutive month
- Conventional fuel vehicle exports were 490,000 units, up 40% YoY
In the first seven months, cumulative NEV exports reached 2,909,000 units, up 1.2 times YoY, while conventional fuel vehicle exports reached 3,231,000 units, up 36.2%.
| Metric | July 2026 | YoY Change | MoM Change |
|---|---|---|---|
| Total Sales | 2.584M units | -0.3% | -8.0% |
| NEV Sales | 1.561M units | +23.7% | -5.0% |
| Total Exports | 1.043M units | +81.3% | +0.6% |
| NEV Exports | 553K units | +145.5% | +5.7% |
| NEV Penetration | 60.4% | — | — |
Domestic Market: Soft Demand Meets Seasonality
July's overall market was weighed down by multiple factors. Chen Shihua, deputy secretary general of CAAM, noted that July is a traditional off-season, with showroom traffic and orders naturally easing. A mid-year sales push pulled some demand forward, while persistent high temperatures and typhoons/flooding in some regions also impacted offline sales.
Key domestic figures:
- Domestic vehicle sales: 1,541,000 units, down 23.6% YoY, down 13.1% MoM
- Domestic conventional fuel vehicle sales: 533,000 units, down a sharp 45.7% YoY
- Domestic NEV sales: 1,008,000 units, down 2.8% YoY
- Jan-Jul cumulative domestic NEV sales: 6,099,000 units, down 11.8% YoY
CAAM attributed the rapid export growth to China's complete automotive supply chain advantage—from lithium ore processing and battery manufacturing to vehicle assembly—with ample capacity and controllable costs. The rapid iteration of smart driving and cockpit features also helps Chinese automakers match overseas demand more precisely. For more industry data and analysis, visit EX1000.COM.
