- NEV wholesale share hit a record 70% in late July as automakers prioritize electric deliveries.
- China passenger vehicle wholesales plunged 33% month-on-month amid weak retail demand and inventory cuts.
- NEV wholesales grew 5% year-to-date while fuel-vehicle production collapsed, signaling structural market shift.
According to the latest data from CPCA, retail sales of passenger vehicles in China reached 1.123 million units from July 1 to July 26, down 18% year on year and 13% compared with the same period last month.
During the same period, passenger vehicle wholesale deliveries from automakers totaled 1.172 million units, down 18% year on year and 33% month on month.
Retail demand remained weak during July’s traditional off-season, with softer consumer activity becoming a key factor behind the decline in wholesale performance.
On a cumulative basis, passenger vehicle retail sales reached 9.824 million units so far this year, down 20% year on year, while wholesale deliveries totaled 13.718 million units, down 7%.
However, compared with the broader market downturn, new energy vehicles (NEVs) continued to show stronger resilience.
Data showed that NEV retail sales reached 738,000 units from July 1 to July 26, down 2% year on year, significantly outperforming the overall passenger vehicle market. NEV retail penetration reached 65.7%.
On the wholesale side, NEVs performed even better. During the same period, wholesale sales of new energy passenger vehicles reached 820,000 units, up 6% year on year.
Although the figure declined 27% from the previous month, NEV wholesale penetration reached 70% for the first time.
The milestone indicates that NEVs are accounting for an increasingly larger share of automakers’ vehicle deliveries, reflecting a continued structural shift in China’s auto market.
Looking at cumulative figures for the year, the NEV wholesale market has maintained growth momentum.
Total NEV wholesale volume reached 7.608 million units, up 5% year on year, while cumulative retail sales totaled 5.443 million units, down 13%.
Production trends also continued to diverge between NEVs and traditional fuel vehicles.
During the first three weeks of July, production of pure gasoline-powered light vehicles stood at 250,000 units, down 56% year on year and 17% month on month.
Meanwhile, production of hybrid and plug-in hybrid vehicles reached 219,000 units, down 16% year on year and 1% month on month.
At present, pressure on China’s auto market in July has mainly come from the seasonal slowdown, a high comparison base from last year and ongoing inventory adjustments across dealerships.
Meanwhile, trade-in incentives, local subsidies, new-generation NEV launches and export growth have provided some support to the market, although these factors have yet to fully offset overall sales pressure.
The continued rise in NEV penetration also highlights a broader transition in China’s auto market, shifting from policy-driven adoption toward changes in consumer demand and market structure.
As pure-electric and plug-in hybrid models expand across wider price segments, NEVs are becoming a core component of China’s passenger vehicle market, while the contraction of fuel vehicle production and sales continues.
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