Kathmandu— China’s new-energy vehicle (NEV) sales reached a milestone in July 2026, accounting for over 60 percent of all new cars sold that month, according to data released Wednesday by the China Association of Automobile Manufacturers (CAAM). Cumulative NEV sales for the first seven months of the year also exceeded 50 percent. Output and sales figures for July reached 1.57 million and 1.56 million units respectively, representing a significant year-on-year increase, driven by factors including high oil prices and improvements in vehicle technology.

Record Sales Figures

In July alone, NEV output and sales exceeded 1.57 million and 1.56 million units, respectively—a rise of 26.8 percent and 23.7 percent year-on-year. Pure electric vehicles accounted for a substantial portion of these figures, with both output and sales surpassing one million units and increasing by over 30 percent compared to the previous year. From January through July, NEV production and sales totaled 9.01 million and 9 million units, respectively—nearly 10 percent higher than the same period in 2025.

Overall Auto Market Trends

While NEV sales surged, overall auto output and sales experienced a slight decline in July, reaching 2.57 million and 2.58 million units. Chen Shihua, Deputy Secretary-General of CAAM, attributed this dip to typical seasonal slowdowns in the automotive market. He also cited factors such as the conclusion of mid-year sales promotions, high temperatures, and adverse weather conditions—including typhoons and flooding—as contributing to the decreased performance.

Strong Export Growth

Vehicle exports remained robust in July, exceeding 1.04 million units – an increase of 81.3 percent year on year. Notably, NEV exports saw even more substantial growth, rising 1.5-fold to reach 553,000 units and accounting for over half of the total vehicle export volume for two consecutive months. Over the first seven months of 2026, China exported a total of 6.14 million vehicles—up 66.8 percent—including 2.91 million NEVs, representing a 1.2-fold increase.

Factors Driving NEV Adoption

Persistently high oil prices have played a key role in boosting the appeal of NEVs by increasing the cost of operating traditional fuel-powered vehicles. Simultaneously, Chinese automakers have focused on technological innovation and research & development, leading to improvements in areas such as safety and driving range—addressing consumer concerns and expanding product competitiveness. The availability of an increasingly diverse range of NEV models has also contributed to market growth. As of the end of June, China had 23.06 million EV charging facilities, a 43.2 percent increase year-on-year.

China aims to have new energy vehicles account for 30% of its total vehicle fleet by 2030, as outlined in the country’s action plan for carbon peaking during the 15th Five-Year Plan period (2026-2030).

(With inputs from Xinhua)

Originally published on abcnews.com.np.