China’s new energy vehicle (NEV) retail sales declined year-on-year in June for the sixth consecutive month, despite a modest monthly recovery that pushed sales above one million units for the first time this year. According to data from the China Passenger Car Association (CPCA), retail sales reached just over one million units, down nearly 10% from the same period last year but up 6% compared to May.

Contrasting the domestic slowdown, NEV exports experienced explosive growth. June exports jumped more than 150% year-on-year, hitting nearly half a million vehicles and accounting for a record 57% of all passenger vehicle exports from China. This export surge emerged as the primary bright spot in an otherwise challenging sales environment.

The overall passenger vehicle market also contracted sharply. Total retail sales fell by more than 23% from the previous year, a decline driven largely by the steep drop in gasoline-powered car sales, which plummeted nearly 40%. Pure gasoline vehicles suffered the most, with sales down over 40%, while conventional hybrids declined at a slower pace. Industry analysts attribute this decline to persistent high oil prices and growing consumer shift toward electric vehicles.

Within the NEV segment, battery electric vehicles (BEVs) maintained their dominant role, posting year-on-year retail growth and an increase over the previous month. BEV sales topped 685,000 units, rising 3.6% from last June and 7.4% from May. In contrast, plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs) continued to lose ground, with PHEVs down over 27% and EREVs falling nearly 32% year-on-year.

The robust export performance reflects China’s expanding position as a global NEV manufacturing hub, with passenger vehicle exports reaching 877,000 units in June, a substantial year-on-year increase. These shipments accounted for more than one-third of manufacturers’ total sales, underscoring the strategic shift toward international markets amid domestic sales pressure.

Among manufacturers, BYD solidified its leadership in the domestic NEV market, delivering over 224,000 units in June. Geely Auto and Leapmotor followed, with retail sales surpassing 100,000 and 70,000 units respectively. Other notable players included Changan Automobile and Tesla, illustrating the competitive and rapidly evolving landscape of China’s NEV industry.