China’s EV exports continue to rise in July

In July, sales of electric cars and plug-in hybrids in China reached 1.561 million units, pushing their share of new-car sales above 60 per cent for the first time. Strong exports continue to support growth, while domestic demand remains weak. The trend is even more pronounced for combustion-engine vehicles.

In July, sales of new energy vehicles reached 1.561 million units, according to figures from the China Association of Automobile Manufacturers (CAAM). Sales were up 23.7 per cent from the same month last year, but fell 5 per cent from June. A slight decline in July is not unusual due to seasonal effects in China. However, with the overall market also contracting, NEVs reached a record 60.4 per cent of new passenger car sales. The cumulative NEV share for the first seven months of the year also exceeded 50 per cent for the first time, according to CN EV Post.

For context: CAAM’s figures are based on manufacturers’ wholesale sales and therefore include both vehicles sold in China and exports. New Energy Vehicles include battery-electric vehicles, plug-in hybrids — including range-extender vehicles (EREVs) — and fuel cell vehicles. Fuel cell vehicles, however, account for only a negligible share of passenger car sales, including in China.

Domestic NEV sales in July fell 2.8 per cent year-on-year to 1,008,000 units, while NEV exports surged 145 per cent to 553,000 units. Exports are thus becoming increasingly important for Chinese manufacturers as domestic demand weakens. The trend is also evident, albeit to a lesser extent, for combustion-engine vehicles.

Overall, China’s total passenger car market remained stable in July year-on-year, with sales of 2.59 million vehicles roughly in line with July 2025. However, sales fell 8 per cent from June. The stable overall figure masks a sharp decline in domestic sales and strong growth in exports. Domestic sales across all powertrains fell 23.6 per cent year-on-year to 1.541 million units, with sales of combustion-engine vehicles falling particularly sharply, by 45.7 per cent. At the same time, exports across all powertrains surged 81 per cent year-on-year to 1.043 million vehicles, offsetting the decline in the domestic market.

Within the NEV segment, BEV sales reached 1.072 million units in July, up 32 per cent year-on-year but down 6.1 per cent from June. PHEV sales totalled 489,000 units, an increase of 8.4 per cent year-on-year and a decline of 2.2 per cent from June. BEV sales therefore continued to grow significantly faster than those of plug-in hybrids.

NEV production reached 1.576 million units in July, up 26.8 per cent year-on-year. BEV production exceeded one million units for the second consecutive month. In the first seven months of the year, China produced 9.014 million NEVs, nearly 10 per cent more than in the same period last year.