Key facts
- Electric vehicles (EVs) and plug-in hybrids accounted for 66.7% of new car sales in mainland China in the first week of June.
- This penetration rate is a new weekly record, up from 62.9% in May.
- Mainland EV deliveries exceeded 152,000 units between June 1 and 7, an 8% increase from the previous month.
- Year-on-year NEV retail sales fell 14% in the first week of June.
- Production of pure-fuel light vehicles dropped 39% year-on-year in the first week of June.
- Overall passenger vehicle retail sales in China decreased by 23% year-on-year in the first week of June.
Electric vehicles (EVs) and plug-in hybrids have captured a record 66.7% of new car sales in mainland China during the first week of June, signaling a continued acceleration in the country's shift towards electrification. This marks a fresh weekly high, surpassing the previous full-month record of 62.9% set in May.
According to data from the China Passenger Car Association (CPCA), NEV retail sales reached 152,000 units between June 1 and 7. While this represents an 8% increase from the preceding month, it signifies a 14% year-on-year decline. The strong penetration rate is largely attributed to the accelerating collapse of the traditional gasoline vehicle market, with pure-fuel light vehicle production plunging 39% year-on-year in the same period.
Overall passenger vehicle retail sales in China saw a significant 23% year-on-year decrease during the first week of June. This broader market adjustment, coupled with a wait-and-see consumer sentiment and the absence of large-scale promotions, contributed to the overall decline. Despite a reduction in government subsidies and incentives earlier in the year, new smart EV models have helped sustain consumer demand.
In May, China's NEV penetration rate hit a record high of 62.9%, driven by shrinking sales of internal combustion engine vehicles. Furthermore, NEV exports surged by 112.6% year-on-year in May, constituting a record 54% of total passenger vehicle exports.