China's production of new-energy vehicles (NEVs) rose 30% year-on-year in July to 1.55 million units, with a penetration rate of 61%, the China Passenger Car Association (CPCA) said. Total vehicle production remained flat year-on-year, reaching 2.53 million units. Conventional fuel vehicle production stood at 980,000 units, down 27% year-on-year. With robust production and a rising penetration rate, NEVs have become one of the most visible symbols of progress in Chinese manufacturing, analysts said. In the first seven months of 2026, NEV production reached 8.95 million, up 10%, with a penetration rate of 51%. Total vehicle production reached 17.61 million, down 3% year-on-year. The output of conventional-fuel vehicles stood at 8.67 million, down 14% year-on-year. The robust NEV production was achieved as the Chinese economy made a good start with improved quality and efficiency in the first seven months, despite facing multiple challenges, including the complex international environment, Cui Dongshu, Secretary General of the CPCA, said.
Profits in the equipment and high-tech manufacturing sectors grew rapidly, while the raw materials and manufacturing sectors posted double-digit profit growth, Cui said. “China has now entered a harvest period as earlier heavy, long-term investment in research and development is paying off, and new quality productive forces show accelerated speed. The nation's NEV sector is a typical example,” Jin Siyu, an industry analyst, told the Global Times.
In the first seven months of 2026, the vehicle industry's revenue was CNY6.078 trillion, up 2.7% year-on-year. The industry had a profit margin of 3.6%. According to the China Association of Automobile Manufacturers (CAAM), China's auto exports maintained strong growth in July, with shipments exceeding 1 million units for a second consecutive month., In July, China exported 1.043 million vehicles, up 0.6% month-on-month and 81.3% year-on-year. For NEVs, China exported 553,000 units, up 150% year-on-year. NEVs accounted for more than half of China's total auto exports for a second consecutive month. China's annual NEV sales have risen to 16.49 million units, and China accounts for more than 70% of the global output of NEVs, power batteries and key materials, the Global Times reports.
