China's NEV Sales Top 50% of Total Auto Market for First Time in Oct

In Jan–Oct, NEV production and sales totaled 13.015 million units and 12.943 million units, with penetration rising to 46.7%.

On Nov. 11, the China Association of Automobile Manufacturers (CAAM) released the latest monthly auto data.

In October, China produced 3.359 million vehicles and sold 3.322 million vehicles, up 12.1% and 8.8% year-on-year (YoY), respectively.

A chart displaying the production and sales statistics of vehicles in China from January to October 2023, highlighting the rise in new electric vehicle (NEV) penetration and year-on-year growth rates. — Production and sales statistics of vehicles in China for October and the year-to-date

New electric vehicle (NEV) production and sales reached 1.772 million units and 1.715 million units, with monthly NEV penetration topping 50% for the first time at 51.6%.

From January to October, China produced 27.692 million vehicles and sold 27.687 million vehicles, rising 13.2% and 12.4% YoY. Growth moderated slightly from January–September by 0.1 and 0.5 percentage points.

Over the same period, NEV production and sales totaled 13.015 million units and 12.943 million units, up 33.1% and 32.7% YoY, with penetration rising to 46.7%.

A chart displaying the production and sales statistics for new electric vehicles (NEVs) in China for October and the year-to-date, highlighting growth percentages and market penetration. — Production and sales statistics of NEVs in China for October and the year-to-date

China exported 666,000 vehicles in October, up 22.9% YoY. NEV exports reached 256,000 units, soaring nearly 100% YoY (+99.9%).

From January to October, vehicle exports totaled 5.616 million units, up 15.7% YoY. NEVs contributed roughly one-third, totaling 2.014 million units, an increase of 90.4% YoY.

Chart illustrating China's vehicle export trends, showing monthly export figures and percentage growth rates for the year 2023 and past years. — China’s vehicle export for October and the year-to-date

Sales remained highly polarized by price segment. From January to October, traditional internal combustion engine (ICE) vehicles were concentrated in the RMB 100,000–150,000 ($14,000–21,070) range, with cumulative sales of 3.698 million units, down 8.6% YoY.

For NEV passenger cars, the RMB 300,000–400,000 ($42,100–56,180) range saw a sales decline, while other price bands recorded positive growth.

NEV volume remained concentrated in RMB 100,000–200,000 ($14,000–28,090), which reached 5.446 million units, up nearly 30% YoY.

A graphical representation of China's vehicle production and sales data from January to October, highlighting trends in traditional internal combustion engine vehicles and new electric vehicles (NEVs) by price segment. — China’s vehicle sales by price segments from January to October

CAAM deputy secretary general Chen Shihua said NEVs continued to achieve strong growth this year. He attributed the trend to two main drivers:
• China’s vehicle trade-in subsidy has delivered broad-based support and boosted NEV consumption.
• Next year’s halved NEV purchase tax has encouraged some consumers to bring forward their purchases, driving a new round of demand.

China’s NEVs are transitioning from an incremental market to the mainstream. Passing the 50% penetration threshold marks a structural inflection: volume growth remains concentrated in low- to mid-priced models; exports continue to expand; and improving supply capacity and charging infrastructure are raising market maturity. Competition is shifting toward product strength and system capabilities.