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China sales numbers are in: EVs up while everything with an engine collapses
Electrek • • business
Key Points:
- In July 2026, China's gas-powered car sales plummeted by 44%, while pure battery-electric vehicle (BEV) sales grew modestly by 6%, leading to an overall 3.9% decline in the Chinese auto market.
- The drop in sales primarily affects vehicles with combustion engines, including plug-in hybrids (PHEVs) and extended-range electric vehicles (EREVs), whereas BEVs remain the only segment showing growth.
- Despite a reported 3.9% decline in new energy vehicle (NEV) sales overall, this is driven by falling PHEV and EREV sales, while BEVs continue to gain market share, reaching a record 65.1% retail market share in China.
- The early 2026 dip in BEV demand was linked to changes in China's EV incentive program, but demand rebounded from March onward amid rising concerns about oil price volatility and energy security.
- China has become the world’s leading auto exporter, with NEV exports surging 147.8% year-over-year in July 2026, accounting for 58.8% of total vehicle exports, as global demand for electric vehicles continues to rise.
