China's 2026 auto consumption policy package continues to strengthen. The trade-in subsidy program enters version 2.0 with increased subsidies and a focus on county and rural markets. NEV purchase tax exemption is extended through year-end 2026, providing policy certainty. Combined, these policies are expected to sustain 15%+ NEV sales growth with penetration potentially exceeding 60%.
Counterpoint data shows global electric vehicle sales in Q3 2025 grew 32% year-over-year. Battery electric vehicles (BEV) continued to dominate, accounting for 2/3 of total EV sales, with BEV sales up 32% year-over-year. BEV penetration reached a new milestone this quarter, accounting for 18% of global passenger vehicle sales, up from 14% in the same period last year. China remains the key growth engine, contributing 60% of global BEV total sales. At model level, Tesla Model Y, Geely Galaxy Xingyuan and Tesla Model 3 became the quarter's best-selling EVs globally.
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