EV Sales are booming

China’s EV market continues to boom, reaching a new milestone in July 2026. Domestic passenger-vehicle retail sales of new-energy vehicles (NEVs) reached approximately 951,000 units, accounting for 65.1% of total passenger-vehicle sales of 1.46 million units. 

This means that nearly two out of every three new passenger vehicles sold in China were already NEVs. The pace of adoption has been remarkable: NEV penetration was below 10% just a few years ago, reached around 33% in 2023, surpassed 50% in 2024, and climbed to approximately 54% in 2025. 

With penetration now exceeding 65%, NEVs have clearly moved from an emerging segment to the mainstream of China’s automotive market. 

This rapid adoption is likely to accelerate investment and innovation across the EV ecosystem, including batteries, electric drivetrains, power electronics, charging infrastructure, intelligent driving and automotive manufacturing, while creating significant opportunities for companies participating in the broader EV supply chain.    

---Source: CPCA (China Passenger Car Association), July 2026