China achieves record NEV share – exports drive growth
According to the China Association of Automobile Manufacturers (CAAM), 1.496 million electric cars and plug-in hybrids were sold last month. This represents a 14.4% increase compared to the same month last year and an 11.3% rise compared to April 2026 (1.344 million NEVs). Production of new energy vehicles reached 1.554 million units in May, a 22.4% year-on-year increase.
This continues the recovery observed in April, when China reported more NEVs sold in a single month than in the corresponding month of the previous year for the first time in 2026.
However, the CAAM figures require some context. The association’s wholesale sales data covers all vehicles produced in China, including those destined for the domestic market and for export. New energy vehicles comprise battery-electric vehicles, plug-in hybrids including range-extender models, and fuel cell passenger cars. In practice, however, fuel cell vehicles play only a marginal role, with BEVs and PHEVs accounting for the vast majority of sales.
Combined, BEVs and PHEVs accounted for 56.9% of total wholesale sales in May, up from 53.2% in April and 48.7% in May 2025. In other words, more than one in two vehicles sold or exported from China last month was either a battery-electric vehicle or a plug-in hybrid. However, the record share does not solely reflect stronger demand in the domestic market.
Exports support China’s NEV growth
As in April, exports are the primary driver of growth. In May, 446,000 NEVs manufactured in China were exported. This marks a 110% increase compared to the same month last year and a further 3.8% rise compared to April, when 430,000 NEVs were exported. As a result, NEV exports reached another record high in a single month.
Calculations indicate that exports accounted for nearly 30% of China’s total NEV wholesale sales in May. In May 2025, by contrast, exports represented just over 16% of the total, with 212,000 NEVs shipped overseas. Excluding exports, NEV sales in the Chinese domestic market would have reached around 1.05 million units in May. In the same month last year, domestic sales stood at approximately 1.095 million units. Despite the strong overall result, the domestic NEV market therefore remained slightly below the level recorded a year earlier.
This aligns with the broader picture of China’s automotive market. Across all drive types, 2.629 million vehicles were sold in May—a 2.1% decrease compared to the previous year but a 4.1% increase compared to April. According to CAAM, domestic passenger car sales stood at 1.444 million units, 23.4% below the previous year’s figure. Across all drive types, vehicle exports reached 930,000 units in May, a 68.7% increase compared to May 2025. The Chinese market remains under pressure, while exports continue to grow strongly.
BEVs grow faster than plug-in hybrids
A breakdown by drive type also reveals a shift in favour of pure electric vehicles. BEV sales reached 1.026 million units in May, representing a 22.9% year-on-year increase and a 13.4% rise compared to April. BEV production rose by 27.2% to 1.044 million vehicles.
Plug-in hybrids accounted for 470,000 sales in May. This was 7.1% more than in April but 0.5% less than in May 2025. Thus, BEVs contributed significantly more to growth last month than PHEVs. However, plug-in hybrid production increased by 13.6% to 510,000 units.
Both drive types continue to see strong growth in exports. BEV exports reached 269,000 units in May, a 94.3% year-on-year increase. PHEV exports grew even more dynamically, rising by 140% to 178,000 vehicles. This underscores the growing importance of plug-in hybrids in the export business for Chinese manufacturers.
Ultimately, the development remains twofold: China is achieving new record highs in NEV share and continues to increase wholesale sales. However, the key driver is increasingly exports, while domestic demand remains subdued.
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