New energy vehicles accounted for 60.4% of new car sales in China in July, crossing the threshold for the first time even as the broader market extended its decline. The milestone follows a 10th consecutive month of contraction in the world's largest auto market.
While domestic NEV sales fell 23.6%, NEV production reached 1.57 million units, up 26.8% year-on-year, and total vehicle exports hit 1.04 million units, an 81.3% increase. Chinese manufacturers face U.S. and European Union tariffs alongside non-tariff requirements on environment, safety and labor standards.
GlobalData forecasts a 12% full-year decline in China's light vehicle sales to 23.5 million units, as GDP growth slowed to 4.3% in the second quarter.