June 2026 Passenger Vehicle Sales Dip Nationwide as NEV Penetration Hits 62.8%

In June 2026, retail sales of passenger vehicles nationwide totaled 1.602 million units, down 23.2% year-over-year but up 6.1% month-over-month. Cumulative retail sales for the first six months of the year reached 8.701 million units, a 20.2% decline compared to the same period last year. In June, retail sales of internal combustion engine (ICE) vehicles fell by 39% year-over-year—pure ICE vehicles dropped by 42%, while conventional hybrid vehicles declined by 7%. Sales of ICE vehicles across domestic brands, mainstream joint-venture brands, and luxury brands all suffered due to high fuel prices. Meanwhile, new energy vehicle (NEV) retail sales in June decreased by 9% year-over-year. Among them, NEV sales from domestic and luxury brands declined, whereas those from mainstream joint-venture brands surged by 45%. Domestic brands sold 1.1 million vehicles in June, down 18% year-over-year but up 6% month-over-month, capturing a market share of 68.6%—an increase of 4.5 percentage points year-over-year. Mainstream joint-venture brands recorded retail sales of 330,000 units, down 34% year-over-year but up 8% month-over-month. Luxury vehicle sales reached 170,000 units, down 30% year-over-year but up 3% month-over-month. The NEV retail penetration rate stood at 62.8% in June, remaining at a historically high level. High oil prices and shifting consumer preferences are accelerating the transition from fuel-powered to electric vehicles. Although auto purchasing activity has shown some improvement, the market continues to face triple pressures: insufficient relief from external shocks, weak consumer sentiment, and structural divergence. It is expected that suppressed demand will gradually be released in the third quarter, supported by falling oil prices in July, the conclusion of the FIFA World Cup, and the end of the rainy season.