In August, retail sales of internal combustion engine vehicles in China dropped by 40% compared to the previous year, with approximately 536,000 units sold. This decline pushed the market share of traditional fuel-powered cars down to 34.8%. The China Passenger Car Association attributes this shift partly to rising gasoline costs, which have increased by more than ¥1,720 per tonne since the start of 2026.
Total passenger car sales in China reached 1.54 million units in August, marking a 23.6% year-on-year decrease. New energy vehicles (NEVs) accounted for 1.005 million units, achieving a record market penetration of 65.2%. While plug-in hybrid sales fell by 25.8% to 307,000 units, battery electric vehicles remained the only segment to grow, rising 1.7% year-on-year to 698,000 units.
For the period from January through August, total retail sales of passenger cars in China amounted to 11.7 million units, a 20.8% decline from the previous year. NEV sales reached 6.7 million units, while ICE sales totaled 5 million units. The market share ratio for the year currently stands at 56.9% for NEVs and 43.1% for ICE vehicles.
Automakers found support through international markets during August. Passenger car exports surged by 77.8% to reach 888,000 units. Within this category, NEV exports experienced significant growth, jumping 154.7% to 518,000 units compared to the same period last year.
