China’s NEV retail sales see continuous growth in July, with market penetration rate surpassing 54%

A worker works at an assembly line of Voyah, a Chinese NEV brand, in Wuhan, central China's Hubei Province, April 9, 2025. (Photo: Xinhua)

In July, retail passenger car sales of China's new-energy vehicles (NEVs) reached 1.003 million units, up 14 percent year-on-year, with the NEV market's retail penetration rate reaching 54.7 percent, according to the China Passenger Car Association (CPCA) on Wednesday.

The cumulative retail sales of NEV passenger cars reached 6.47 million, up 30 percent compared with last year, according to the CPCA.

The growth was primarily driven by technological advancements and innovation. Chinese automakers are continuously launching new models, stimulating consumption as drivers are eager to experience new technologies and more willing to purchase vehicles, Zhang Xiang, secretary-general of the International Intelligent Vehicle Engineering Association, told the Global Times on Wednesday.

China's overall retail passenger car sales in July are estimated at 1.834 million units, up 7 percent year-on-year. Cumulative retail sales reached 12.736 million units, up 10 percent year-on-year.

Since the beginning of this year, the domestic economic situation has been better than expected, with improved exports in the past two months, the CPCA said in the data release.

Domestic policies to promote NEVs in rural areas have also driven the year-on-year growth in sales. Additionally, policies for the used car market have made it easier to trade NEVs in the secondhand market. This enables consumers to sell their NEVs more conveniently, thereby facilitating a smoother market flow, Zhang said.

The CPCA noted that the national trade-in policy has shown significant results, with increased market sales, noticeable reduction in competitive price cuts and improved operational pressures within the industry.

The Wednesday data release also highlighted China's growing global NEV market share.

In 2025, China's new-energy passenger vehicle global market share hit 68.3 percent, with June at 69.7 percent, up 2.3 points year-on-year. From January to June, China's battery electric vehicle share was 64.5 percent, up 1.9 points from the second quarter in 2024. Its plug-in hybrid share reached 76 percent, showing a strong performance.

China's NEV industry has achieved a leapfrog advantage, leading in both manufacturing technology and core components such as batteries, motors and electronic controls, as well as intelligent systems, Zhang said.

He added that Chinese NEVs leverage economies of scale and the world's largest supply chain, offering advanced technologies and low costs for strong global competitiveness. Chinese automakers are expanding overseas, gaining brand recognition. Accessible export channels, like the Belt and Road Initiative, boost consumer acceptance and drive significant export growth, Zhang added.

China has launched a new campaignto promote NEV sales in counties and towns by ramping up trade-ins and creating diverse spending scenarios, as part of this year's efforts to boost domestic consumption, the Ministry of Commerce said in June. These measures are set to unleash NEV consumption potential and foster new growth points for the automotive market, according to the official statement.