China's NEV Retail Penetration Hits 56.6% in August

From August 1 to 24, retail sales of new energy vehicles in the national passenger car market reached 727,000 units, a year-on-year increase of 6%; wholesale sales of new energy vehicles by passenger car manufacturers reached 711,000 units, a year-on-year increase of 11%.

The report shows that from August 1 to 24, retail sales of new energy vehicles (NEVs) in the national passenger car market reached 727,000 units, a year-on-year increase of 6%. The retail penetration rate of NEVs was 56.6%, and cumulative retail sales this year reached 7.182 million units, a year-on-year increase of 27%.

During the same period, wholesale sales of NEVs by passenger car manufacturers nationwide reached 711,000 units, a year-on-year increase of 11%. The wholesale penetration rate was 53%, and cumulative wholesale sales this year reached 8.345 million units, a year-on-year increase of 33%.

Considering the data and policies, the third batch of subsidy funds was distributed to various regions in late July this year. The old-for-new vehicle replacement programs have gradually restarted in some areas, with more diversified subsidy methods, which are expected to improve the growth rate in August.

However, due to the strong subsidy effects of the intensified old-for-new policy in July 2024, which quickly stimulated consumer enthusiasm, the sales base for August this year is relatively high. As a result, retail growth in early August has shown relatively weak pressure.

A bar chart displaying sales data for different years (23, 24, 25) across various time periods in August, including comparison with the previous year and percentage changes. — Weekly retail volumes and growth rates of major manufacturers in August.

Now, let’s look at the import and export market data. From January to July 2025, China imported 270,000 vehicles, a year-on-year decrease of 32%. The import vehicle market continues to face significant pressure due to contraction. As the transition to electrification has changed the market demand structure, demand for fuel vehicles has continued to shrink, and demand for imported fuel vehicles has also declined significantly.

In contrast to the import trend, China’s automobile exports from January to July 2025 reached 4.18 million units, a year-on-year increase of 20%. In July alone, automobile exports reached 700,000 units, a year-on-year increase of 27%. Among these, exports of new energy vehicles from January to July reached 1.71 million units, a year-on-year increase of 46%, with July alone seeing 291,000 units exported.

A large parking lot filled with rows of various new energy vehicles (NEVs) in different colors, primarily black and white, arranged systematically.

NEV exports performed better than expected, mainly due to plug-in hybrids and hybrids replacing pure electric vehicles as new growth drivers for exports. Notably, plug-in hybrid pickup trucks have shown strong export performance, becoming a highlight of NEV commercial vehicle exports.

As sales from June to August gradually enter the seasonal off-peak period, sales volumes are expected to decline over the next three months. As a result, automakers are actively reducing inventory. Based on inventory levels at the end of July and future sales projections, overall inventory pressure in July this year has significantly decreased. For companies exclusively producing NEVs, inventory decreased from 880,000 units in April 2025 to 800,000 units in June, and further dropped to 780,000 units in July.