A remarkable milestone has been reached in the global automotive industry, marking a significant shift in the energy consumption landscape. Last month's statistics showed that, in the first half of this year, gasoline-powered vehicles accounted for 49 percent of new car sales worldwide.
This is the first time their market share has fallen below 50 percent since automobiles became widely popular in the United States in the 1920s. This development not only signifies a historic turning point for the automotive sector but also reflects a structural shift underway in the global energy industry.
Data from Mobility Global show that in the first half of 2026, global sales of gasoline vehicles declined by 10 percent year-on-year, while sales of hybrid and pure electric vehicles increased by 10 percent and 12 percent respectively. Although it would be too simplistic to describe this trend as "gasoline out and electricity in", with gasoline, diesel, hybrids and pure electrics likely coexisting for some time, the overarching shift toward electrification through staged iterations is undeniable.
This transformation did not happen overnight; rather, it is the result of long-term interaction among technological, industrial and market forces.
Fluctuations in oil prices served as a catalyst, highlighting the cost advantages of new-energy vehicles.
At a deeper level, it is the maturation of the industry chain — including improved driving range, the widespread adoption of smart cockpits and a far richer variety of models available compared with gasoline cars — that is driving consumers to embrace electric mobility.
In this pivotal transformation, China's role is particularly noteworthy. On the one hand, sales of gasoline vehicles in China have fallen below one-third of the market, while penetration of NEVs has risen to nearly 70 percent. Clearly, the Chinese market is transitioning to new energy at a faster pace.
On the other hand, according to a media report in the United States, in the 2026 ranking of the world's top 100 auto parts suppliers, 17 Chinese companies made the list — surpassing the US and Germany, and second only to Japan. The first time a Chinese company appeared on this list was in 2013.
During the internal combustion-engine era, companies from Europe, the US, Japan and the Republic of Korea set the standards for the automotive industry. Today, from electric drive systems and power batteries to automotive chips and smart cockpits, China's auto industry underpins the global supply for NEVs.
Last year, both production and sales of NEVs from China surpassed 16 million units, ranking first worldwide for 11 consecutive years. The country reportedly accounts for more than 70 percent of global output in NEVs, power batteries and key materials.
China's position in electric mobility is a microcosm of its role as a pioneer in the energy transition.
Currently, the country leads the world in new energy technologies and equipment, producing roughly 80 percent of the world's photovoltaic modules and around 70 percent of its wind turbines.
Over the past few years, China has built the world's largest renewable energy system.
The share of non-fossil energy consumption in total energy consumption increased from 16 percent in 2020 to 21.7 percent in 2025.
Unlike some countries that waver on energy policies due to political differences and competing interests, China has consistently advanced an energy revolution.
This steadfast commitment is driven by the need to ensure energy security amid an unfavorable resource endowment — rich in coal, poor in oil and low in gas — coupled with rising energy demand and mounting environmental pressures.
It is also an inevitable choice made to achieve its self-imposed emissions reduction targets.
The transition period China has set — from peak carbon emissions to carbon neutrality — is far shorter than that of major developed nations, presenting challenges of unprecedented magnitude.
There is no doubt that, in addressing the high-carbon energy mix as a major emitter, China's efforts will have a highly positive impact on the global transition to low-carbon energy. Affected by conflicts in the Middle East, the global energy market has experienced severe volatility this year, with oil prices soaring in many countries. While withstanding external shocks, China has supported the world economy by reducing oil imports.
Over the past decade, China has helped bring down the average levelized cost of electricity for global wind and solar PV projects by 60 percent and 80 percent, respectively. In the past five years, Chinese exports of wind and solar products have enabled other countries to reduce carbon emissions by approximately 4.1 billion tons.
Historically, every major advance in human civilization has typically been accompanied by a revolution in the energy system. Drilling wood to make fire ushered humanity into the era of agricultural civilization; coal sparked the Industrial Revolution; and oil propelled industrial civilization to a developed stage. After wood, coal and oil, solar panels and wind turbine blades may well become symbols of a new energy revolution, heralding the dawn of an ecological civilization.
The author is chief researcher at the China Watch Institute, China Daily.
The views don't necessarily reflect those of China Daily.
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