China's new-energy vehicle (NEV) sector delivered double-digit production and sales growth in the first nine months of 2026, with NEVs making up more than half of domestic new car sales and exports jumping 130% year-on-year to 4.006 million units, according to official figures. The strong overseas expansion comes as Chinese automakers shift their competitive edge from low pricing to full-spectrum technological and industrial strengths, Chinese experts said. China's NEV production reached 12.483 million units and sales reached 12.472 million units from January to September, up 11% and 11.1% year-on-year, according to the China Association of Automobile Manufacturers (CAAM). NEVs accounted for 53.6% of all new vehicles sold in China during the period, underscoring their growing share of the domestic auto market.
Liu Yan, Deputy Secretary General of the CAAM, said that the growing competitiveness of China's automotive industry has shifted from an advantage based on value for money to broader strengths centered on new-energy technology and intelligence features. The shift has not only injected fresh momentum into the global green and low-carbon transition, but also given Chinese automakers a new competitive edge over the longer term, Liu said. The recently released 15th Five Year Plan (2026-30) for the development of the intelligent connected NEV industry provides strategic guidance for the sector over the next five years, a CAAM official said. The plan focuses on breakthroughs in key technologies, closer integration of vehicles, roads and cloud systems, industrial restructuring, better industry governance and global expansion. It is expected to shift the industry from scale-driven growth to higher-quality development and boost the global competitiveness of Chinese auto brands, the official noted. A recent survey suggested that acceptance of Chinese EVs has grown and that Chinese EV brands are increasingly being considered on factors beyond their traditionally competitive pricing.
OC&C's Global Automotive Disruption Speedometer Report 2026, based on responses from more than 8,000 drivers across nine countries, showed that 38% of the UK consumers surveyed said that some Chinese EVs matched or exceeded Western alternatives in terms of quality. That compares with a global average of 44%, rising to 48% in both France and Italy, while 35% of German respondents shared that view. Across the survey, 13% said that they would pay more for a Chinese EV and 40% would pay the same price. Chinese EV brands are also beginning to close the gap in brand consideration. Across the EU, 18% of consumers said that they would consider a Chinese EV brand, compared with 16% for a U.S. EV brand. Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), told the Global Times that while China retains strong price competitiveness, the era of competition based purely on low prices has given way to technological advantages. “Many of our products can now match international brands with equivalent specifications at comparable prices, and even gain premium recognition from some consumers,” Cui said, as reported by the Global Times.
Chinese hybrid vehicle exports to the EU almost tripled from 2024 to 2025, rising from around 107,000 to around 302,000. Hybrid and plug-in hybrid electric vehicles (PHEVs) made up 46.6% of the European car market during the first eight months of this year. PHEV demand is booming in some of Europe’s biggest markets, with registrations in the first eight months of the year up 77.6% in Italy, 33.9% in Spain and 15.6% in Germany. The European Union market grew by 30,720 vehicles in August, per ACEA data – a year-on-year increase of 4.5% – with Chinese carmakers BYD, Chery, Leapmotor and SAIC accounting for about 92% of the growth. According to the latest trade agreement between the EU and China, the EU will limit imports of Chinese hybrid cars at 350,000 units per year, rising at 6% annually. This will leave exports at less than half the 800,000 vehicles the EU has projected will be shipped in 2026. In a bid to address growing concerns from the West over trade imbalances, Beijing will cut the value-added tax export rebate rate for new energy vehicles from 13% to 9% from April 1, according to a notice issued jointly by the Ministry of Finance and the State Taxation Administration, the South China Morning Post adds.
