China's NEV Production, Sales Both Surpass 7 Million Units in First Half of 2026: Industry Association

China’s new‑energy vehicle (NEV) industry has continued its robust expansion into 2026, recording impressive growth across both domestic operations and international markets. According to the latest data released by the China Association of Automobile Manufacturers (CAAM) on Thursday, production and sales volumes in the first six months of the year have both exceeded the 7‑million‑unit mark, while exports have surged to record levels, reflecting the sector’s growing maturity, technological strength, and rising global influence.

Strong Domestic Performance

From January to June 2026, China’s NEV production reached 7.44 million units, representing a year‑on‑year increase of 6.7%. Over the same period, domestic sales reached 7.45 million units, growing by 7.3% compared with the first half of 2025. These figures confirm that the transition toward electrified mobility has become a stable and irreversible trend within China’s automotive market.

The steady rise in domestic demand is supported by several key factors: continuous improvements in battery energy density and driving range, enhanced vehicle safety and intelligent features, expanding charging infrastructure, and a wider range of models available across different price segments. What began more than a decade ago as a policy‑driven initiative has now evolved into a market‑led transformation, with consumers increasingly choosing NEVs for their performance, lower running costs, and environmental benefits.

Exports Become a Major Growth Engine

Perhaps the most striking development in the first half of 2026 is the rapid expansion of China’s vehicle exports, with NEVs emerging as the primary driver of this growth.

Total automobile exports reached 5.1 million units in the first six months, a significant increase of 65.3% compared with the same period last year. Of this total, 2.36 million units were new‑energy vehicles, a jump of 1.2 times year‑on‑year.

The momentum accelerated further in June, marking a historic milestone. For the first time, China’s monthly vehicle exports surpassed 1 million units, rising 75.1% year‑on‑year. Within that figure, NEV exports hit 523,000 units, more than doubling to 1.6 times the volume recorded in June 2025.

“Exports of new‑energy vehicles have become the main force pushing China’s overall automotive export growth this year,” said Zhang Xiang, Secretary‑General of the International Intelligent Vehicle Engineering Association. “This sharp increase highlights the growing recognition of Chinese NEVs in global markets. Years of investment in research and development, industrial upgrading, and supply chain optimization have made these vehicles more competitive in terms of technology, quality, and value, allowing them to stand out against international rivals.”

Chinese NEVs are now being exported to more than 200 countries and regions, with demand growing strongly across Southeast Asia, Europe, the Middle East, and Latin America. Many buyers are drawn to the advanced features, reliable performance, and competitive pricing offered by Chinese manufacturers.

Policy Support to Sustain Growth

Looking ahead to the second half of 2026, industry analysts remain optimistic that the upward trend will continue, supported by a combination of government policies and new product launches. Zhang Xiang noted that the rollout of supportive measures will help unlock further consumption potential and maintain steady expansion.

On June 18, the Ministry of Industry and Information Technology (MIIT), together with four other government departments, officially launched a new national campaign to boost NEV adoption in rural areas. The initiative aims to improve vehicle trade‑in services, expand the coverage of charging facilities in towns and villages, and provide technical and financial support for rural users.

As part of the program, authorities will identify and recommend NEV models that are specifically designed to suit rural road conditions, travel needs, and usage habits. The selected vehicles will be required to have proven reliability, good energy efficiency, strong after‑sales service networks, and positive market reputations. This effort is expected to open up a large and previously under‑tapped consumer base, adding new momentum to the market.

In addition to rural promotion, existing policies, including purchase incentives, tax reductions, and support for battery recycling and reuse, will continue to provide a stable environment for growth. Automakers are also preparing to launch dozens of new models throughout the second half of the year, offering improved technology, longer ranges, and more intelligent functions to meet evolving consumer expectations.

Industry Outlook

The strong performance in the first half of 2026 reinforces China’s position as the world’s largest producer and market for new‑energy vehicles. With production and sales already surpassing 7 million units, and exports growing at double‑digit rates, the industry is on track to set another full‑year record.

At the same time, the sector is shifting its focus from pure volume growth to higher‑quality development. Manufacturers are increasingly investing in core technologies such as advanced batteries, electric drive systems, automotive chips, and intelligent driving software, aiming to build long‑term competitive advantages.

As the global transition toward sustainable mobility accelerates, China’s NEV industry is expected to play an even more central role, contributing to the reduction of carbon emissions and helping shape the future of transportation worldwide.