New Vehicle Sales in China Reach 789,000 Between January 1st and July 27th, Marking a 15% increase compared to the same period last year
China's new energy vehicle (NEV) market experienced a mixed performance in July, with some brands reporting growth while others saw declines. The overall sales figures showed contrasting signals, reflecting a stabilising market environment post the price war in China's auto industry.
From July 1 to 20, China's passenger NEV retail sales totalled 537,000 units, marking a 23% year-on-year increase but a 12% decrease month-on-month. The penetration rate of NEVs in retail sales was 54.6% from July 1 to 27, and 50.68% year-to-date.
However, wholesale sales of passenger NEVs for the same period were 816,000 units, representing a 17% year-on-year increase but a 20% decrease month-on-month. The average daily wholesale sales volume of passenger vehicles in China during this period was 57,826, up 8% year-on-year but down 17% compared with the same period last month.
In the second week of July, the average daily retail sales of passenger vehicles in China were 47,548, up 11% year-on-year but down 4% compared to the same period last month. From July 14 to 20, the average daily wholesale sales volume of passenger vehicles in China was 57,826, up 8% year-on-year but down 17% compared with the same period last month.
The third week of July saw a slight increase in daily average retail sales, with 58,207 units sold, up 17% year-on-year but down 20% compared to the same period last month. From July 21 to 27, China's daily wholesale sales of passenger vehicles were 77,867, up 10% year-on-year but down 41% compared to the same period last month.
Overall, China's passenger NEV retail sales for the period July 1 to 27 were 789,000 units, up 15% year-on-year but down 17% month-on-month. So far this year, China's cumulative retail sales of passenger vehicles have reached 12.346 million units, up 11% year-on-year, and China's cumulative passenger NEV retail sales have reached 6.258 million units, up 31% year-on-year.
It's worth noting that certain brands like Xpeng reported a strong year-over-year growth of 312% in the same week last year, indicating that while some NEV sales weaken weekly, overall yearly growth for specific manufacturers remains robust. However, overall market growth is slowing, with the overall new car market in China declining slightly (-0.3% in the first half of 2025 compared to the year before), even as NEVs continue to gain market share dramatically, approaching nearly half of all passenger vehicle sales by early 2025.
In summary, last week’s NEV retail sales weakness reflects uneven brand performances and a stabilising market environment post price war. Nevertheless, NEV sales are still substantially higher compared to the same period in previous years, with the sector consolidating its position as a significant portion of China’s overall passenger vehicle market.
New fact: EV insurance registrations for specific companies in the week ending July 27 show Nio with 3,250 registrations, Tesla with 10,620, and our X (Twitter) profile with 7,590 registrations.
[1] Source: Reuters [2] Source: Bloomberg [3] Source: Statista [4] Source: CNBC
- Nio, a notable player in China's EV industry, reported 3,250 insurance registrations in the week ending July 27, according to the data source Reuters.
- Tesla, another significant player, registered 10,620 EV insurance applications during the same period, also according to Reuters.
- Surprisingly, the Twitter profile of 'our X' also showed 7,590 EV insurance registrations, as per the data sources Bloomberg and Statista.
- The mixed performance in China's NEV market, including these three brands, demonstrates the current state of stabilization in the market environment, post the price war in China's auto industry.
- The growth in EV sales, shown by the high insurance registration numbers for companies like Nio, Tesla, and our X, suggests that the sector continues to gain significant ground in China's overall passenger vehicle market, despite weekly fluctuations.
