China’s passenger new energy vehicle (NEV) wholesale sales are expected to post their strongest year-on-year growth of 2026 in July, reinforcing signs of continued momentum in the country’s electric vehicle market.
Preliminary data released by the China Passenger Car Association (CPCA) estimates passenger NEV wholesales reached approximately 1.47 million units in July, representing a 23% increase from the same month last year.
Compared with June, wholesale sales are estimated to have eased 1% from 1.481 million units, a decline the CPCA described as smaller than typical seasonal trends.
NEVs Continue to Outperform Conventional Vehicles
According to the CPCA, the overall passenger vehicle market remained relatively subdued during July, while new energy vehicles continued to serve as the industry’s primary growth driver.
The association said the performance gap between NEVs and conventional gasoline-powered vehicles continued to widen, with higher fuel prices encouraging consumers to shift toward electrified models.
International crude oil prices increased during the month amid renewed disruption to shipping through the Strait of Hormuz, contributing to two retail fuel price increases in China during July.
The CPCA said cumulative fuel price increases since the beginning of July totalled nearly 985 yuan ($145) per tonne, significantly raising the operating costs of gasoline vehicles and improving the relative economics of NEV ownership.
Supply and Exports Support Growth
The association also cited improving production efficiency among major automakers.
Manufacturers have continued to optimise production schedules and strengthen supply chains, helping ease earlier delivery constraints and supporting higher wholesale volumes.
Exports also remained an important source of demand.
The CPCA said rising fuel prices in overseas markets are supporting stronger global demand for Chinese-made NEVs, while domestic manufacturers continue to benefit from competitive pricing and energy-efficient technologies.
Chinese brands are increasingly replacing conventional gasoline-powered vehicles in international markets, contributing to higher export orders.
Multiple Automakers Post Record July Sales
A broad range of manufacturers reported their strongest July wholesale sales on record.
These included BYD, Geely Auto, Chery, Leapmotor, Tesla China, SAIC-GM-Wuling, SAIC Passenger Vehicle, Xpeng, Nio and Great Wall Motor, reflecting continued strength across domestic brands, joint ventures and emerging EV manufacturers.
The CPCA’s estimate is based on manufacturers that recorded wholesale sales exceeding 10,000 NEVs in June.
Those companies collectively sold approximately 1.38 million NEVs in July.
Using their market share as a benchmark, the association estimated nationwide passenger NEV wholesales at around 1.47 million units for the month.
Retail Sales Reach New High
Earlier, the CPCA estimated China’s passenger NEV retail sales would total around 980,000 units in July.
The association also expects NEV penetration to reach a record 64.5% of passenger vehicle retail sales, highlighting the continued expansion of electric and plug-in hybrid vehicles in the world’s largest automotive market.