NEVs take 49.6% of China's new-vehicle sales in H1

New energy vehicles accounted for nearly half of China's new-vehicle sales in the first half of 2026, becoming a key source of demand as the broader automobile market came under pressure, latest industry data show.

The market penetration rate of NEVs reached 49.6 percent during the period, according to data released by the China Machinery Industry Federation on Thursday.

Data from the China Association of Automobile Manufacturers also showed that China produced 7.438 million NEVs and sold 7.446 million in the first six months, representing year-on-year increases of 6.7 percent and 7.3 percent, respectively.

NEVs accounted for 49.6 percent of all new-vehicle sales, while battery electric vehicles made up about 67 percent of total NEV sales.

"The figure shows that NEVs have become the dominant force in China's domestic automobile market," said Chen Shihua, deputy secretary-general of the CAAM, adding that they are now shouldering a central role in supporting the industry's demand.

Chen's remarks came as China's broader automobile market remained under pressure. CAAM data showed that vehicle production and sales fell 4 percent and 4.1 percent year-on-year, respectively, in the first half. Although both declines narrowed from the first five months, the market remained in contraction.

As the shift from traditional to new growth drivers gathers pace, the association expects China's NEV sales to reach about 16 million units for the full year.

NEVs have also become the clear mainstream of China's passenger-car market. The new energy retail penetration rate in the national passenger-car market reached 62.8 percent in June, remaining above 60 percent for a third consecutive month, according to the China Passenger Car Association.

lijiaying@chinadaily.com.cn