- NEV penetration hits a record 60.4% of July sales, marking electric dominance in China’s market.
- Exports surge to 1.043 million in July, up 81.3% year‑over‑year while domestic demand collapses 23.6%.
- BYD, SAIC, and Geely lead sales, with NEV exporters like Chery and Tesla driving massive overseas growth.
The China Association of Automobile Manufacturers (CAAM) released the automotive industry data report for July 2026.
According to the data, monthly production and sales reached 2.573 million and 2.584 million vehicles respectively, down 6.8% and 8% month over month, and down 0.7% and 0.3% year over year.
In the first seven months of the year, cumulative production and sales stood at 17.567 million and 17.602 million vehicles, both down 3.7% year over year. The decline narrowed further compared with the first half of the year.
The report noted that behind the aggregate numbers, structural divergence across three dimensions continues to be the key trend.
I. Domestic Demand Under Pressure, Exports Surpass One Million
In July, domestic vehicle sales reached 1.541 million units, down 13.1% month over month and 23.6% year over year. In the first seven months, cumulative domestic sales totaled 11.462 million units, a year-on-year decline of 21.4%.
The double-digit drop in both monthly and cumulative domestic sales indicates that end-consumer momentum in the domestic market remains sluggish.
In stark contrast to weak domestic demand, exports surged. July auto exports reached 1.043 million units, up 0.6% month over month and 81.3% year over year, marking the second consecutive month that monthly exports exceeded 1 million units. In the first seven months, cumulative exports reached 6.14 million units, up 66.8% year over year.
In terms of export mix, NEV exports reached 553K units in July, up 5.7% month over month and 1.5 times year over year. Conventional fuel vehicle exports stood at 490K units, down 4.6% month over month but up 40% year over year.
NEVs accounted for more than half of China’s vehicle exports for the second straight month, further widening the gap with traditional fuel vehicles.
II. Passenger Vehicles Edge Down, Commercial Vehicles Moderate
For passenger vehicles, July production and sales reached 2.246 million and 2.268 million units respectively, down 5.4% and 5.6% month over month, and down 2.1% and 0.9% year over year.
In the first seven months, cumulative passenger vehicle production and sales were 14.967 million and 14.988 million units, down 5.5% and 5.4% year over year respectively.
Chinese brands continued gaining market share. Domestic automakers sold 1.754 million passenger vehicles in July, up 9.3% year over year, with market share reaching 77.4%, up 7.2 percentage points from a year earlier.
From January to July, Chinese brands sold 10.892 million passenger vehicles, accounting for 72.7% of the market. The data shows Chinese brands have become the mainstream choice for Chinese consumers.
The commercial vehicle market followed a different trajectory. In July, commercial vehicle production and sales reached 328K and 317K units, down 15.4% and 22.5% month over month, but up 10% and 3.5% year over year.
In the first seven months, cumulative commercial vehicle production and sales reached 2.600 million and 2.614 million units, up 8.4% and 7.7% year over year respectively.
Commercial vehicle exports remained strong, reaching 121K units in July, up 59.6% year over year. In the first seven months, cumulative commercial vehicle exports reached 785K units, up 36.1% year over year.
III. NEV Share of New Vehicle Sales Tops 60% for First Time
The NEV market continued its growth trajectory. In July, NEV production and sales reached 1.576 million and 1.561 million units respectively, up 26.8% and 23.7% year over year.
BEV sales reached 1.072 million units in July, up 32.2% year over year. PHEV sales reached 489K units, up 8.4% year over year.
In the first seven months, cumulative NEV production and sales reached 9.014 million and 9.007 million units, up 9.5% and 9.6% year over year respectively.
The cumulative NEV share of new vehicle sales reached 51.2% in the first seven months, breaking the 50% mark for the first time. In July alone, NEVs accounted for 60.4% of all new vehicle sales, setting a new monthly record.
NEV passenger car demand remained concentrated in the B-segment, with cumulative sales of 2.378 million units in the first seven months, up 17.9% year over year.
Domestic NEV sales reached 1.008 million units in July, down 10% month over month and 2.8% year over year. In the first seven months, cumulative domestic NEV sales reached 6.098 million units, down 11.8% year over year.
IV. Key Automaker Performance
From January to July, the top 15 automotive groups by sales volume sold a combined 16.385 million vehicles, down 3.7% year over year, accounting for 93.1% of total sales. The top three were SAIC (2.313 million units), BYD (2.228 million units), and Geely (1.974 million units).
In the NEV sector, the top 15 companies sold 8.731 million units, up 9.5% year over year, accounting for 96.9% of total NEV sales. The top three were BYD (2.228 million units), Geely (1.174 million units), and SAIC (915K units).
In exports, among the top ten vehicle exporters in July, Chery led with 202K units, up 69.7% year over year. Tesla recorded the fastest export growth, shipping 66K vehicles overseas in July, up 1.4 times year over year.
From January to July, Chery’s cumulative exports reached 1.141 million units, up 71% year over year, while Tesla exported 295K vehicles, up 1.3 times year over year.
