China’s EV Battery Installations Double MoM but Dip YoY in March 2026 as Industry Enters Growth Transition Phase

In March 2026, China’s power battery installations reached 56.5 GWh, surging 114.9% month-over-month and more than doubling from the previous month. This rebound was primarily driven by a wave of new vehicle launches, end-of-quarter sales pushes, and automakers’ restocking demands. Among them, LFP (lithium iron phosphate) battery installations amounted to 45.8 GWh, up 122.3% month-over-month, capturing an 81% market share; NCM (ternary) battery installations totaled 10.7 GWh, rising 88.1% month-over-month, accounting for 19% of the market. Despite the sharp month-over-month increase, March’s installations dipped slightly by 0.1% year-over-year, remaining largely flat compared to the same period in 2025. Total installations for Q1 2026 reached 124.9 GWh, down 4.1% year-over-year. This decline is attributed to factors including the stabilization of NEV (new energy vehicle) penetration rates at around 50%, automakers’ adjustments to inventory management strategies, and relatively weak commercial vehicle demand in the first quarter. Notably, ternary batteries posted year-over-year growth in both March (up 7.3%) and Q1 (up 3.3%), while LFP batteries saw declines of 1.7% and 5.9%, respectively. In terms of market structure, CATL led the pack with 25.71 GWh of installed capacity, holding a 45.54% market share. BYD ranked second with 10.06 GWh, capturing 17.83% of the market. Together, the top two accounted for 63.3% of total installations, down 3.23 percentage points from the same period last year. Ranks three to five were held by SVOLT (3.52 GWh), Gotion High-Tech (3.37 GWh), and EVE Energy (2.74 GWh), reflecting intense competition. LG Energy Solution ranked sixth with 1.92 GWh, seeing its market share decline month-over-month. Other companies in the top ten included Ruipu Lanjun, Sunwoda, JiYao Tongxing (a newcomer), and Zhenli New Energy. In March, a total of 31 companies achieved battery installations, down 10 year-over-year; for Q1, the number of active suppliers totaled 36, also a reduction of 10 year-over-year, indicating accelerated consolidation among smaller players. On the export front, China exported 22.3 GWh of power batteries in March, up 31.9% month-over-month and 60.2% year-over-year. Cumulative exports for Q1 reached 56.8 GWh, growing 50.3% year-over-year, emerging as a key driver of industry growth.