According to the latest data from the China Passenger Car Association (CPCA), July's new energy passenger vehicle retail penetration rate surpassed 65.1%, setting a new historic high.
Chinese domestic brands achieved a record 71.1% share of domestic retail sales, marking a significant milestone in the transformation of China's automotive market. This represents a dramatic shift from just a few years ago, when foreign brands dominated the Chinese market.
Leapmotor emerged as a standout performer, ranking third in retail sales with 83,000 units, representing an 83.9% year-on-year increase. It was the only brand among the top ten to achieve positive growth, highlighting the competitive strength of emerging NEV manufacturers.
The data also showed that while overall passenger car retail sales declined 20.9% year-on-year in July, the NEV segment continued its upward trajectory, demonstrating the structural transformation underway in China's automotive market.
Over 80% of fuel vehicle owners now choose new energy vehicles when replacing their cars, according to the report, with NEV retail penetration rate remaining above 60% from April through July 2026.
Source: China Passenger Car Association
