China's new energy vehicle (NEV) sales surge by 27% annually, reaching 1.26 million units last month, according to data from the China Automotive Technology and Research Center (CAAM).
China's New Energy Vehicle Sales in July 2025
China's retail sales of new energy vehicles (NEVs) in July 2025 saw a slight dip, falling below the 1.3 million unit mark (1,262,000 units) compared to June, but still showing a 27.4% year-on-year increase overall. This decline, however, is a typical trend for July compared to June in previous years.
The total NEV sales included battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles. Notably, PHEV sales saw their first-ever year-on-year decline in demand, contributing significantly to the softer NEV sales figure for July.
Several factors contributed to the decline in July NEV sales and the drop in PHEV sales specifically.
- Seasonal sales patterns: July sales numbers usually dip after strong June numbers, a recurring trend seen in previous years.
- Shift in consumer preference: Demand has been shifting more strongly toward pure battery electric vehicles (BEVs) compared to hybrids, causing PHEV sales to decline year-on-year for the first time.
- Price changes and incentives: Some automakers made minor upgrades and price adjustments in July, while others maintained consistent pricing strategies, neither of which stimulated increased July demand.
- Overall market slowdown: While the total Chinese auto market grew year-on-year, it dropped more than 10% month-on-month in July, reflecting a broader slowdown that also impacted NEVs.
Despite this dip, NEVs still captured a significantly larger market share—48.7% in July 2025, up from 43.8% the previous year—indicating continued strong interest in new energy models overall, even as monthly sales fluctuate.
In terms of specific figures, PHEV sales in July stood at 451,000 units, up 2.8% year-on-year but down 4.04% from June. BEV sales totaled 811,000 units, up 47.1% year-on-year. Domestic NEV sales, excluding exports, totaled 1,037,000 units, up 16.9% year-on-year but down 7.8% from June.
China also saw an increase in NEV exports, with 225,000 units exported in July, up 120% year-on-year and up 10% from June. This includes 141,000 BEVs exported, up 83.6% year-on-year and up 8.3% from June.
The total vehicle sales in July, including NEV and non-NEV, were 2.593 million units, with a year-on-year growth of 14.7%. BEV sales in July were down 5.59% from June.
In summary, the fall below 1 million in July retail PHEV sales and the overall slight decline in NEV sales from June to July is mainly due to typical seasonal decreases, a continuing shift from hybrids to full electric vehicles, and stable manufacturer pricing strategies that did not stimulate increased July demand. Despite this, NEVs continue to hold a significant market share, indicating a strong interest in new energy vehicles overall.
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