New energy vehicles reach record share of car sales in China

In September 2026, new-energy vehicles (NEVs) accounted for 67% of all new car sales in China.

This record share includes both battery electric vehicles and plug-in hybrids. While total car sales in China fell by 28% compared to the previous year, combustion-engine vehicles experienced a much sharper decline. Sales of fuel-only cars dropped 31% during the first nine months of 2026, while battery electric vehicle sales fell by only 4% over the same period.

Cui Dongshu of the China Passenger Car Association (CPCA) linked the drop in combustion-engine car sales to rising petrol prices caused by the Hormuz crisis. Analysts suggest that China's growing electric fleet has helped offset oil demand, with one estimate stating that EVs accounted for 12% of the decrease in China's oil use following the crisis. Despite the record market share, domestic retail sales of NEVs still declined by 17% in September.

To compensate for weaker domestic demand, Chinese carmakers more than doubled their exports of NEVs, which increased by 164% year-on-year. This export surge has prompted some international regions, including the European Union, to consider or implement tariffs on Chinese electric vehicle imports.