Strong exports are boosting Chinese NEV sales

Image: BYD

The market for new NEVs in China saw significant growth in July. According to data from the China Association of Automobile Manufacturers (CAAM), sales of battery electric vehicles, plug-in hybrids, and fuel cell vehicles increased by 23.7 percent compared to the previous year. Exports also rose sharply.

A total of 1,561,000 units were sold in July, representing a 5 percent decline from June. For the first time, NEVs accounted for more than 60 percent of new car sales, reaching 60.4 percent in July. Production amounted to 1,576,000 units, an increase of 26.8 percent on a year-on-year basis.

1,072,000 units of pure electric vehicles (BEV) were sold, representing a 32.2 percent increase compared to the previous year. BEV production exceeded one million units for the second consecutive time. In contrast, BEV sales dropped by 6.1 percent compared to June.

Plug-in hybrids (PHEV) saw sales of 489,000 units, an 8.4 percent increase from the previous year but a 2.2 percent decline from the previous month. The overall vehicle market declined by 0.3 percent in July compared to the same period last year and by 8 percent compared to June, reaching 2,584,000 units.

While exports surged strongly, domestic demand remained weak. China’s domestic NEV sales dipped slightly to 1,008,000 units, a 2.8 percent year-on-year decline. In contrast, vehicle exports rose by 81.3 percent compared to the same period last year and by 0.6 percent from June, reaching 1,043,000 units. NEV exports grew particularly sharply, increasing by 145.5 percent compared to July 2025 and by 5.7 percent from June 2026, reaching 553,000 units.

The manufacturers' association CAAM attributed the rapid export growth to China's comprehensive automotive supply chain. This chain spans from lithium extraction and battery production to vehicle assembly, featuring substantial capacity and controllable costs. The rapid development of features for intelligent driving and cockpit interaction also helps Chinese automakers better meet foreign demand.

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About the author

Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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