China’s new energy vehicle (NEV) industry continued its robust growth trajectory in the first half of 2026, with production and sales both exceeding 7.400 million units, according to data released by the China Association of Automobile Manufacturers on July 9th. The NEV sector has once again demonstrated its role as a key growth engine for the country’s automotive industry, even as the broader passenger car market experienced a modest contraction. With NEV sales accounting for approximately half of all new car sales during the period, the data underscores the accelerating transition from internal combustion engine vehicles to electrified powertrains in the world’s largest auto market.
Production and sales figures for the January-to-June period reached 7.438 million and 7.446 million units respectively, representing year-on-year growth. June alone saw particularly strong performance, with NEV production and sales hitting 1.598 million and 1.643 million units respectively. The monthly sales figures pushed NEV penetration to nearly 60 percent of total new car sales in June, marking a significant milestone for the industry. Battery electric vehicles continued to dominate the NEV mix, accounting for approximately 67.0 percent of total NEV sales during the half-year period. The steady growth comes despite an overall contraction in China’s total automobile production and sales, which declined by around 4.0 percent year-on-year to roughly 15.000 million units in the first half.
Export performance emerged as a particularly bright spot for the NEV sector. Total automobile exports reached 5.096 million units in the first half, up 65.3 percent year-on-year. Of these, NEV exports accounted for 2.355 million units, representing a remarkable increase. In June alone, monthly automobile exports surpassed one million units for the first time in history, with NEV exports reaching 523,000 units. The China Association of Automobile Manufacturers noted that NEV exports have become the core driver of the country’s automotive export growth. According to data from the China Passenger Car Association, new energy passenger vehicle exports specifically reached 2.231 million units in the first half, with leading manufacturers including Chery, BYD and SAIC all reporting strong overseas sales.
The first-half results highlight a clear structural transformation in China’s automotive industry, with NEVs increasingly replacing traditional fuel vehicles as the primary source of growth. Industry officials have pointed to sustained policy support, including the continued implementation of large-scale equipment renewal and consumer goods trade-in programs, as key factors underpinning the sector’s resilience. Looking ahead to the second half of the year, the China Association of Automobile Manufacturers has expressed cautious optimism, projecting that the industry’s overall operating environment will continue to improve as new product offerings enter the market and consumer demand remains stable. With NEV penetration approaching the halfway mark of total car sales and exports surging to record levels, China’s position as the world’s leading NEV market and exporter appears increasingly entrenched after 11 consecutive years of ranking first globally in NEV production and sales.