"Oil Retreats, Electric Advances": NEV Monthly Sales Exceed 1 Million Units

"Oil retreats, electric advances" — the divergence is intensifying. Data released by the Passenger Car Market Information Joint Committee (CPCA) shows that in August, new energy vehicle (NEV) sales among domestic passenger cars reached 1.005 million units, raising the retail penetration rate of NEVs in the overall passenger car market to 65.2%, a historic high. During the same period, internal combustion engine (ICE) vehicle retail sales were approximately 540,000 units, down 40% year-on-year. The intensifying divergence between rising and falling makes the industry trend of "oil retreating, electric advancing" increasingly clear.

NEV Market Share Hits Historic High

The most prominent feature of the August auto market is the dramatic divergence between the oil and electric camps. Total passenger car retail sales for the month reached 1.541 million units, of which NEV passenger cars accounted for 1.005 million units, up 5.7% month-on-month, with a market share of 65.2% — a historic high and 9.9 percentage points higher than the same period last year. This means that for every 10 passenger cars sold domestically, approximately 6.5 are new energy models.

On the ICE vehicle side, August retail sales were approximately 540,000 units, down 40% year-on-year, with pure ICE models seeing a steeper decline of 45% — nearly halved. The ICE market is contracting rapidly, with only conventional hybrid vehicles achieving slight positive growth, serving as the sole buffer segment for the ICE camp.

By brand category, the NEV penetration gap continues to widen across tiers. In August, self-owned brands achieved an NEV penetration rate of 83.9%; luxury brands reached 38.9%; while mainstream joint venture brands managed only 13.4%. Self-owned brands have essentially completed their electrification base, luxury brands are in a transitional phase, and traditional joint venture automakers lag in their electrification transformation.

Notably, the technology route within the NEV segment is also shifting. Battery electric vehicles (BEVs) have re-emerged as the primary growth driver, while plug-in hybrid (PHEV) and range-extender growth rates have slowed, marking a new phase in the industry technology route competition.

Passenger Car Exports Grow 78% Year-on-Year

Against the backdrop of domestic demand pressure, exports have become a genuine pillar of China's auto sales. In August, passenger car exports (including complete vehicles and CKD kits) reached 888,000 units, up 77.8% year-on-year, with exports accounting for 38% of total manufacturer sales — approaching 40%, compared to just 20% in the same period of 2025.

NEV passenger car exports surged 154.7% year-on-year to 518,000 units. NEVs accounted for 58.4% of total exports, up 18 percentage points from the same period last year, making new energy the core driver of overseas expansion. Self-owned brands carried the bulk of the NEV export growth, with BYD, Geely, and Chery — the top three enterprises — collectively accounting for over 60% of exports, demonstrating a significant head-agglomeration effect.

The CPCA noted that exports continue to provide a stabilizing role, effectively supporting manufacturer wholesale volumes and production capacity. Looking ahead to September, the market enters the traditional "Golden September, Silver October" consumption peak season, with terminal foot traffic expected to continue recovering. Additionally, following the implementation of the new NEV safety national standard, compliant products are being iterated and launched concentrically, with elevated technical thresholds driving the industry toward a more regulated and quality-oriented development phase.

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