China’s new energy vehicle (NEV) market continued to expand in May, with wholesale passenger vehicle sales estimated at 1.36 million units, as rising fuel costs, growing exports and continued product launches supported demand.
The estimate, released by the China Passenger Car Association (CPCA), represents a 12% increase from a year earlier and an 11% rise compared with April.
Fuel Prices and Market Conditions Support NEV Demand
According to the CPCA, higher oil prices played a role in accelerating consumer interest in electric and electrified vehicles.
The association said geopolitical tensions affecting shipping through the Strait of Hormuz contributed to elevated global crude oil prices, leading to two increases in China’s retail fuel prices.
As operating costs for gasoline-powered vehicles increased, demand shifted further toward NEVs, including battery electric vehicles and plug-in hybrids.
The CPCA also noted that a higher number of working days in May helped manufacturers increase production output and meet rising demand.
Export Growth Adds Momentum
Chinese automakers also benefited from growing overseas demand for NEVs, according to the industry body.
The CPCA said domestic brands have strengthened their position in international markets through advances in electrification technology, energy efficiency and competitive pricing.
Expanding export volumes provided additional support for production and wholesale sales during the month.
The association added that continuous technology upgrades and the launch of new vehicle models by major manufacturers helped stimulate market activity.
BYD Remains Market Leader
BYD maintained its position as China’s largest NEV manufacturer by wholesale volume in May. The company delivered 376,990 passenger NEVs during the month, retaining a significant lead over competitors.
Geely Auto ranked second with NEV sales of 131,037 units, while its total vehicle sales reached 237,637 units.
Chery secured third place with wholesale NEV sales of 92,905 vehicles.
Tesla China Posts Highest Monthly Volume of 2026
Tesla China ranked fourth among NEV manufacturers, recording wholesale shipments of 85,982 vehicles in May.
The figure marked Tesla China’s highest monthly wholesale volume so far in 2026.
The performance comes as Tesla continues to face increasing competition from domestic Chinese automakers in the country’s rapidly evolving EV market.
EV Startups Continue Growth
Several Chinese EV startups also reported strong delivery figures during May.
Leapmotor delivered 81,569 vehicles, achieving a new monthly delivery record for the company.
Nio reported deliveries of 37,705 vehicles, representing its highest monthly total of the year.
Industry Concentration Remains High
The CPCA noted that manufacturers recording wholesale NEV sales above 10,000 units accounted for approximately 93% of total market volume in May.
Combined sales from these leading automakers reached an estimated 1.26 million vehicles during the month.
Based on preliminary industry data, the association expects total national passenger NEV wholesale sales to reach approximately 1.36 million units for May, extending the sector’s growth momentum following the traditionally slower sales period at the beginning of the year.