China’s retail sales of passenger new energy vehicles (NEVs) fell back below 1 million units in July, with hybrid models recording their first year-on-year decline since tracking began, according to data released by the China Passenger Car Association (CPCA).
July passenger NEV retail sales totaled 987,000 units, representing a 12.0 percent increase from the same month last year but an 11.2 percent decrease compared to June. This figure was below earlier CPCA estimates, which had forecast retail sales just above the 1 million mark. The data marks a retreat from May and June’s rebounds that pushed sales above 1 million units.
Battery electric vehicles (BEVs) continued to drive growth with retail sales reaching 607,000 units in July, a 24.5 percent increase year-on-year, although down 8.1 percent from the previous month. BEVs made up 61.5 percent of total NEV retail sales in July, up 2 percentage points from June.
Conversely, sales of plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs) combined fell by 4.04 percent year-on-year and 15.56 percent month-on-month, totaling 380,000 units. This represents the first recorded annual decline for hybrid models since CPCA began monitoring in 2020.
Breaking down the hybrid segment, PHEVs accounted for 278,000 units, contributing 28.2 percent of NEV retail sales, down 0.2 percent year-on-year and 16.1 percent month-on-month. EREVs made up 102,000 units, representing 10.3 percent of NEV sales and experiencing an 11.4 percent year-on-year decline and 14.9 percent drop from June.
Overall passenger vehicle retail sales, including sedans, SUVs, and multi-purpose vehicles, reached 1.826 million units in July, marking a 6.3 percent year-on-year increase but a 12.4 percent decline compared to June.
The penetration rate of NEVs in China’s retail vehicle market was 54.0 percent in July, up 2.7 percentage points year-on-year and 0.7 percentage points month-on-month. This rate varied significantly by brand category, with domestic brands at 74.9 percent, luxury brands at 30 percent, and mainstream joint ventures at 6.7 percent, according to CPCA.
Wholesale sales of passenger NEVs in July totaled 1.181 million units, a 24.4 percent year-on-year increase but a 4.8 percent decline from June. The wholesale NEV penetration rate stood at 53.2 percent, rising 5 percentage points year-on-year and 3.4 percentage points from the prior month.
Exports of passenger NEVs from China surged 120.4 percent year-on-year to 213,000 units in July, a 7.6 percent increase month-on-month, accounting for 44.7 percent of China’s total passenger vehicle exports. Among exported NEVs, BEVs represented 65.3 percent, down from 73.8 percent in July 2024. Smaller BEVs in the A0 and A00 classes made up 43 percent of exports, up from 26 percent the prior year.
