A BYD Denza D9 MPV on display at the Beijing Auto Show in April 2026. Credit: CnEVPost
- China’s NEV retail penetration rose to 65.7% in July 1-26, while wholesale penetration reached 70%.
- Overall passenger vehicle retail sales fell 18% year-on-year during the period, with the decline widening each week.
China’s retail sales of new energy vehicles (NEVs) declined in the first 26 days of July, but continued to outperform the broader auto market.
Retail sales of passenger NEVs in China totaled 738,000 units in July 1-26, down 2% year-on-year and down 10% from the same period last month, according to data released Wednesday by the China Passenger Car Association (CPCA).
Year to date, China’s passenger NEV retail sales totaled 5.443 million units, down 13% year-on-year.
NEV retail penetration rose to 65.7% from July 1-26, up from 63% in the first 3 weeks of the month. The increase was largely driven by the continued contraction of the internal combustion engine vehicle market.
Chinese passenger vehicle manufacturers wholesaled 820,000 NEVs from July 1-26, up 6% year-on-year but down 27% from the same period last month. NEV wholesale penetration reached 70%.
Year-to-date NEV wholesale sales totaled 7.608 million units, up 5% year-on-year.
The broader auto market remained weak during the seasonal slowdown. China’s overall passenger vehicle retail sales totaled 1.123 million units from July 1-26, down 18% year-on-year and 13% from the same period last month.
Year-to-date passenger vehicle retail sales totaled 9.824 million units, down 20% year-on-year.
In the first week of July, from July 1-5, average daily passenger vehicle retail sales were 33,894 units, down 15% year-on-year but up 4% from the same period in June.
In the second week, from July 6-12, average daily retail sales were 39,045 units, down 16% year-on-year and 4% from the same period in June.
In the third week, from July 13-19, average daily retail sales were 46,719 units, down 18% year-on-year and 9% from the same period in June.
In the fourth week, from July 20-26, average daily retail sales were 50,454 units, down 23% year-on-year and 28% from the same period in June.
On the wholesale side, Chinese passenger vehicle manufacturers sold 1.172 million units from July 1-26, down 18% year-on-year and 33% from the same period last month.
Year-to-date wholesale sales totaled 13.718 million units, down 7% year-on-year.
From July 1-5, average daily passenger vehicle wholesale sales were 25,238 units, down 35% year-on-year and 13% from the same period last month.
From July 6-12, average daily wholesale sales were 36,035 units, down 20% year-on-year and 19% from the same period last month.
From July 13-19, average daily wholesale sales were 52,539 units, down 6% year-on-year and 12% from the same period last month.
From July 20-26, average daily wholesale sales were 60,703 units, down 19% year-on-year and 52% from the same period last month.
The CPCA attributed the weakness in wholesale sales to automakers bringing demand forward in June as they pushed to meet first-half targets, as well as a high comparison base from a year earlier. An unusual rise in oil prices and elevated dealer inventories prompted most brands to curb production and shipments, the association said.
Exports provided an important buffer. China exported 5.31 million vehicles in the first 6 months of 2026, up 53% year-on-year. Exports in June reached 1.07 million units, up 73% year-on-year and 8% from May.
NEV exports performed even more strongly. China exported 463,000 NEVs in June, up 59% year-on-year. Exports in the first 6 months totaled 2.42 million units, up 70%.
NEV retail penetration is expected to reach about 64.5% in July, rising further from June.
($1 = 6.7981 yuan)
