August 13, 2026 (InvestinChina.asia) – China’s automobile exports exceeded 1 million units for the second consecutive month in July, while new-energy vehicles (NEVs) accounted for more than 60% of total new-car sales for the first time — a dual milestone that underscores how external demand and electrification are offsetting soft domestic consumption.
The China Association of Automobile Manufacturers (CAAM) released the figures on August 12. In July, the country produced and sold 2.573 million and 2.584 million vehicles respectively, down 6.8% and 8.0% from June and 0.7% and 0.3% lower year-on-year. For the first seven months of 2026, production and sales reached 17.567 million and 17.602 million units, each down 3.7% from a year earlier, though the decline narrowed compared with the first half.
CAAM Deputy Secretary-General Chen Shihua attributed the seasonal pullback to the traditional summer sales lull, the front-loading of demand ahead of mid-year targets, nationwide high temperatures and typhoon and flood disruptions in parts of the country that weighed on offline showroom traffic.
Exports breach the million-unit threshold again
Auto exports hit 1.043 million units in July, up 0.6% from June and 81.3% higher than a year ago. NEV exports reached 553,000 units, up 5.7% month-on-month and 145.5% year-on-year, marking the second straight month that NEVs made up more than half of total vehicle exports.
After two consecutive months above 900,000 units in April and May, outbound shipments stepped up to the million-unit tier in June and July. Among the top ten exporting companies, Chery led with 202,000 units, up 69.7% year-on-year and accounting for 19.4% of total exports.
CAAM noted that China’s position as the world’s most complete automotive supply chain — spanning lithium processing, battery manufacturing, motor and electronic control systems to final assembly — delivers both ample capacity and controllable costs, while embedded intelligence in driving assistance and cockpit interaction has become a core competitive edge that rapidly adapts to overseas user needs.
NEV penetration crosses 60% in a single month
NEV production and sales in July came in at 1.576 million and 1.561 million units, up 26.8% and 23.7% year-on-year respectively. The NEV share of total new-car sales hit 60.4% — the first time the monthly ratio has surpassed the 60% mark.
For the January–July period, NEV production and sales reached 9.014 million and 9.007 million units, each up nearly 10% from a year earlier, with NEVs making up 51.2% of cumulative new-car sales.
Outlook: policy tailwinds and a shift from price wars to value
Looking ahead, Chen pointed to the recent Politburo meeting, which called for “implementing a more proactive fiscal policy and an appropriately accommodative monetary policy” and emphasized “effectively expanding domestic demand” — signals he said would help stabilize confidence and buoy consumption.
Cui Dongshu, secretary-general of the Passenger Car Market Information Joint Committee, told reporters that automakers should pivot from price wars to value-based competition — optimizing product structure, strengthening pricing power along the supply chain and raising the export mix. He also urged greater emphasis on technology-driven cost reduction and on expanding revenue from overseas markets and the automotive aftermarket.