- NEVs captured 63.1% of China passenger vehicle retail sales in early July, dominating the market.
- Wholesale and retail auto volumes plunged year‑on‑year, with retail down 15% and wholesale down 26% in July 1–12.
- Gasoline vehicle output collapsed 56% year‑on‑year while hybrid/plug‑in production rose, shifting industry toward electrification.
China’s passenger vehicle market extended its seasonal slowdown in the first half of July, while new energy vehicles continued to gain share, according to the latest data released by the China Passenger Car Association (CPCA).
Passenger vehicle retail sales totaled 443K units during July 1-12, down 15% year on year and 1% from the same period last month.
Automakers’ wholesale deliveries reached 379K units over the same period, down 26% year on year and 17% lower than the corresponding period last month.
Following the sales push at the end of June to meet first-half targets, China’s auto market entered its traditional off-season, with consumer demand showing a noticeable pullback.
By week, average daily retail sales stood at 34K units in the first week, down 15% year on year. The figure rose to 39K units in the second week, with the decline widening slightly to 16%.
Wholesale trends followed a similar pattern. Average daily wholesale volume reached 25K units in the first week, down 35% year on year. It recovered to 36K units in the second week, narrowing the decline to 20%.
On a year-to-date basis, cumulative passenger vehicle retail sales stood at 9.144M units, down 20% year on year, while cumulative wholesale deliveries totaled 12.926M units, down 6%, indicating the market remains in an adjustment phase.
New energy vehicles continued to outperform the broader market despite the slowdown.
Retail sales of NEV passenger vehicles reached 280K units during July 1-12, down 8% year on year, a significantly smaller decline than that of the overall passenger vehicle market. NEVs accounted for 63.1% of total retail sales.
Wholesale NEV sales also softened. During the first 12 days of July, NEV passenger vehicle wholesale volume totaled 262K units, down 9% year on year and 15% from the previous period, with NEVs accounting for 69.1% of total wholesale deliveries.
Despite the weaker start to July, the NEV market continued to post growth on a cumulative basis. Year-to-date wholesale deliveries reached 7.05M units, up 4% year on year, while cumulative retail sales totaled 4.984M units, down 14%.
The decline in wholesale deliveries during early July was largely driven by seasonal factors. Many automakers accelerated deliveries in June to meet first-half sales targets, pulling forward part of consumer demand. A relatively high comparison base from the same period last year also amplified the year-on-year decline.
As the market entered its traditional low season, showroom traffic weakened, dealers became more cautious about inventory replenishment, and most automakers proactively moderated production and shipment schedules, putting additional pressure on wholesale figures.
On the production side, the divergence between NEVs and internal combustion engine vehicles continued to widen. Output of conventional gasoline-powered light vehicles fell to 159K units in the first two weeks of July, down 56% year on year.
Meanwhile, production of hybrid and plug-in hybrid models reached 145K units, down 9% year on year but up 7% from the same period last month, indicating automakers continue to shift production capacity toward electrified vehicles.
Overall, although the market started July on a weak note, NEVs remained the primary source of resilience in China’s passenger vehicle market. Ongoing product launches, improved price competitiveness and supportive policy measures continued to cushion the decline, allowing the NEV segment to outperform conventional gasoline vehicles.
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