China NEV Sales Hit 7.4 Million Units in First Half 2026

China's new energy vehicle (NEV) sector maintained strong growth through the first half of 2026, with total sales reaching 7.446 million units and output totaling 7.438 million units. According to the China Association of Automobile Manufacturers, pure electric vehicles accounted for 67 percent of all NEV sales during this period. By June 2026, NEVs captured a 67.2 percent market share of domestic passenger car sales.

Export activity surged significantly, with June exports rising 160 percent year-on-year to 523,000 units. This contributed to a record monthly total of 1.037 million auto exports. The dominance of the Chinese market is forcing global automakers, including Toyota, Renault, BMW, and Mercedes-Benz Group AG, to relocate research and development efforts to China to remain competitive globally.

A trend of reverse joint ventures has emerged to facilitate overseas expansion. Chinese firms such as XPeng are utilizing the European sales networks of Volkswagen, while Leapmotor has partnered with Stellantis through Leapmotor International to export vehicles to 40 countries and regions.