In July, new energy vehicles (NEVs) accounted for more than 60% of monthly new-vehicle sales for the first time, while their cumulative share of sales surpassed 50% for the first time. These two milestones, highlighted in the latest data released by the China Association of Automobile Manufacturers (CAAM), have drawn widespread attention.

To understand the significance of these two “firsts,” it is worth taking a look at two rankings that have recently made headlines. In July, nine of the top 10 passenger vehicle models by retail sales in China were NEVs. In the first half of the year, three Chinese automakers entered the global top 10 automotive brands for the first time as a group, joining the first tier of the global market on the strength of their NEV technologies.

These figures show that, after years of development, NEVs have crossed the critical threshold of accounting for more than half of the market and have established themselves as a mainstream choice for consumers. As an essential path for China to move from being a major automobile producer toward becoming an automotive powerhouse, this landmark shift in the market structure means that China has taken another major step toward becoming a global automotive leader.

Why Have These Two “Firsts” Been Achieved?

Competitive products.

Technological advances continue to be made in areas such as power batteries, intelligent cockpits and advanced driver-assistance systems. Advantages in cost-effectiveness, intelligent technology and safety are also becoming increasingly well established. In the first year of the new development period, backed by strong technological capabilities, many Chinese automakers have expanded into niche segments while simultaneously moving up the value chain, breaking into the high-end market and establishing a firm foothold.

Strong market support.

NEVs have accounted for more than 50% of China’s vehicle exports for two consecutive months, with export growth significantly outpacing that of traditional fuel-powered vehicles. Since the beginning of this year, NEV exports have become a key force in stabilizing the overall automotive market and an important engine driving export growth. Many analysts believe this momentum will continue, with annual NEV exports expected to exceed 4 million units.

A more complete infrastructure foundation.

As of the end of June, China had 23.057 million electric vehicle charging facilities (charging points), representing a year-on-year increase of 43.2%. The coverage rate of charging facilities in counties has risen to 98.61%. The world’s largest EV charging network, together with the most complete NEV industrial chain, has created a highly interconnected and mutually reinforcing ecosystem, providing resilient support for the continued growth of China’s NEV industry.

Two “Firsts” Mark a Milestone — and a New Beginning

These two “firsts” are not only milestones, but also a new starting point.

Looking at the broader picture, the development plans for the 15th Five-Year Plan period issued by all 31 provincial-level regions in China show that intelligent connected new energy vehicles have become a shared priority in industrial development. As an important driver for cultivating new quality productive forces, the sector is expected to see further growth over the next five years. By leveraging their respective strengths and pursuing differentiated development strategies, local governments are expected to further advance the NEV industry.

Looking at the trend, the domestic market landscape is becoming increasingly clear, while the global automotive industry is undergoing accelerated restructuring. Through continuous innovation, higher-quality products and stronger brands, China is working toward building a modern automotive industry system that is self-reliant, secure, efficient, green, intelligent and globally competitive. Such a system will provide strong support for China’s ambition to become an automotive powerhouse.

The momentum is already here, and greater growth lies ahead.

Let us look forward to the next breakthrough as Chinese automakers continue to make their mark on the global stage.

Source: People’s Daily, August 14, 2026, Page 2.
Author: Han Xin
Original title: What Do the Two “Firsts” in New Energy Vehicles Mean?
Cover photo: Zhou Mu, Xinhua News Agency

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