China's NEV Market Penetration Reaches 44.3% in H1, Setting New Record

In the first half of 2025, China’s new energy vehicle (NEV) retail sales reached 5.469 million units, up 33.3% year-on-year.

On August 4, according to CCTV News, the China Machinery Industry Federation (CMIF) reported that China’s NEV market penetration rate hit 44.3% in the first half of the year—an all-time high for the same period.

Referring to the “June 2025 National NEV Market Analysis Report” by the China Passenger Car Association (CPCA), NEV retail volume reached 5.469 million units in the first six months of 2025, marking a 33.3% year-on-year increase.

Graph depicting China's NEV retail sales data for the first half of 2025, showing monthly figures and penetration rates by segment. — NEV retail volume reached 5.469 million units in H1 2025, marking a 33.3% year-on-year increase.

By segment, the penetration rate was 24.5% for NEV sedans, 2.0% for NEV MPVs, and 23.7% for NEV SUVs.

Chart showing the market penetration rates of new energy vehicles (NEVs) in China from 2022 to June 2025, segmented by vehicle types including total market, MPVs, and SUVs. — Penetration rate for NEV sedans, MPVs and SUVs in H1 2025.

Among domestic brands, NEVs accounted for 45.8% of total sales. For luxury brands, the NEV penetration was 2.9%, and for mainstream joint-venture brands, only 1.5%.

A line graph depicting the market segmentation of new energy vehicles (NEVs) in China from 2022 to mid-2025, showing various penetration rates for different vehicle categories. — Penetration rate for domestic, luxury and mainstream joint-venture NEV brands in H1 2025.

In June 2025 alone, China’s NEV retail sales totaled 1.112 million units, reflecting a 29.8% year-on-year increase and an 8.2% month-on-month increase. The NEV penetration rate in the total passenger car market for June reached 53.3%, 4.8 percentage points higher than the same period last year.

For June specifically, the penetration rate was 25.2% for NEV sedans, 2.2% for NEV MPVs, and 25.9% for NEV SUVs.

Table showing detailed sales figures of various vehicle types in June 2025, including NEVs, MPVs, and SUVs, with corresponding units sold and market penetration rates. — Retail volume of NEV sedans, MPVs and SUVs in June 2025.

Among domestic brands, NEVs accounted for 48.2% of total sales. For luxury brands, the NEV penetration was 3.3%, and for mainstream joint-venture brands, only 1.8%.

A chart detailing the market distribution and sales figures for new energy vehicles (NEVs) in June 2025, including categories for domestic and luxury brands. — Retail volume of domestic, luxury and mainstream joint-venture NEV brands in June 2025.

Additionally, the CPCA forecasts that retail sales of passenger vehicles excluding minibuses in July 2025 will be around 1.85 million units, a 7.6% year-on-year increase but an 11.2% month-on-month decline. Among them, NEV retail volume is expected to reach around 1.01 million units, potentially pushing penetration up to 54.6%.

With continued growth in both sales volume and penetration, NEVs are becoming the mainstay of China’s automotive market. The NEV sector is projected to maintain a steady upward trend in the second half of the year.