June NEV Retail Penetration Hits 62.8%, ICE Share Drops to 37.2%

In June, national retail sales of passenger vehicles totaled 1.602 million units, down 23.2% year-over-year but up 6.1% month-over-month. For the first half of the year, cumulative retail sales declined by 20.2% year-over-year. The month’s retail decline was primarily driven by falling sales of fuel-powered vehicles, whose retail volume dropped 39% year-over-year, reducing their market share to 37.2%. The decline in conventional fuel vehicle sales accounted for 78% of the total passenger vehicle sales contraction. Meanwhile, the retail penetration rate of new energy passenger vehicles (NEVs) reached a record high of 62.8% in June, up 9.5 percentage points from the same period last year. On the wholesale front, NEV wholesale sales in June reached 1.481 million units, up 19.2% year-over-year, while wholesale sales of conventional fuel-powered passenger vehicles totaled 880,000 units, down 30% year-over-year. The NEV market showed increasing polarization: B-segment electric vehicles recorded wholesale sales of 295,000 units, up 37% year-over-year and accounting for 30% of all battery-electric vehicle (BEV) sales; A-segment EVs posted wholesale sales of 236,000 units, representing 24% of BEV sales—a 2.7-percentage-point decline in share compared to the same period last year. In terms of exports, China exported 877,000 passenger vehicles (including complete vehicles and CKD kits) in June, surging 82.3% year-over-year and rising 11.5% month-over-month, accounting for 37% of manufacturers’ total sales volume. Of this, NEV exports reached 499,000 units, soaring 152.7% year-over-year and making up 56.9% of total exports—16 percentage points higher than the same period last year, marking a historic high.