In early July 2026, CAAM and the China Passenger Car Association (CPCA) branch successively released data on the auto market for June and H1 2026. CAAM stated that in H1, China’s auto industry operated steadily overall, with cumulative declines in production and sales narrowing month by month. Market flows showed three main divergences: first, domestic demand was under significant pressure, with double-digit declines in sales; second, exports exceeded expectations, providing stable support...... SMM has compiled the relevant data on the auto market for June and H1 2026 for readers' reference.
In the automotive sector,
CAAM: June Auto Production and Sales Rise MoM; H1 Declines Narrow Further Compared with First Five Months
In June, auto production and sales reached 2.76 million and 2.81 million units, up 5.5% and 6.9% MoM respectively, but down 1.2% and 3.2% YoY. January-June, auto production and sales totaled 14.993 million and 15.017 million units, down 4.0% and 4.1% YoY respectively, with the declines narrowing further compared with the first five months.
CAAM: NEV Production and Sales in June See Steady Growth; NEV Sales Account for 49.6% of Total New Vehicle Sales in H1
In June, NEV production and sales reached 1.598 million and 1.643 million units, up 26% and 23.6% YoY respectively. NEV sales accounted for 58.5% of total new vehicle sales.
January-June, NEV production and sales totaled 7.438 million and 7.446 million units, up 6.7% and 7.3% YoY, and NEV sales accounted for 49.6% of total new vehicle sales.
CAAM: June Auto Exports Exceed 1 Million Units for the First Time in History; NEV Exports Up 1.6x YoY
In June, auto exports reached 1.037 million units, up 11.6% MoM, soaring 75.1% YoY, marking the first time monthly exports surpassed 1 million units. January-June, auto exports totaled 5.096 million units, up 65.3% YoY.
In June, NEV exports were 523,000 units, up 17.2% MoM, and up 1.6x YoY; exports of conventional fuel vehicles were 514,000 units, up 6.4% MoM and 32.7% YoY. January-June, NEV exports reached 2.355 million units, up 1.2x YoY; conventional fuel vehicle exports totaled 2.741 million units, up 35.5% YoY.
Regarding the auto market in H1, according to CAAM analysis, China's auto industry operated steadily overall, with cumulative declines in production and sales narrowing month by month. Market flows exhibited three key divergences: First, domestic demand was clearly under pressure, with sales dropping by a double-digit percentage; exports grew beyond expectations, providing a stable support. Second, the passenger vehicle market underperformed, edging down slightly; the commercial vehicle market continued its improving trend, with sales maintaining growth. Third, the shift from old to new economic drivers continued, with the traditional internal combustion engine vehicle market shrinking further while NEV maintained steady growth.
Meanwhile, the China Passenger Car Association also released June passenger car market data. June retail sales of passenger cars in China reached 1.602 million units, down 23.2% YoY and up 6.1% MoM; year-to-date cumulative retail sales totaled 8.701 million units, down 20.2% YoY. In June 2026, China's domestic passenger car market showed a recovery trend characterized by "overall pressure, MoM strengthening, and extreme structural divergence."
For passenger NEV, June retail sales reached 1.007 million units, down 9.4% YoY and up 6.0% MoM; January–June passenger NEV retail sales totaled 4.704 million units, down 14.0% YoY. June retail sales of conventional internal combustion engine passenger vehicles were 600,000 units, down 39% YoY and up 6.3% MoM; among these, ordinary hybrid models fell only 7% YoY while rising 24% MoM, a standout performance trend.
In terms of NEV exports, June passenger NEV exports stood at 499,000 units, up 152.7% YoY and up 17.6% MoM , accounting for 56.9% of total passenger vehicle exports, an increase of 15.9 percentage points compared to the same period last year. Among these, pure EVs made up 58.7% of NEV exports (vs. 63.1% a year earlier), and A00+A0-class pure EVs—the core focus—accounted for 53.8% of pure EV exports (vs. 51.2% a year earlier). Riding on the growing scale advantage of China's NEVs and market expansion demand, an increasing number of Chinese-manufactured NEV-branded products are going global, with their recognition outside China steadily rising. Narrow plug-in hybrids represented 37.7% of NEV exports (vs. 33.4% a year earlier), while extended-range models comprised 3.6% of NEV exports (vs. 3.5% a year earlier). Despite some recent external disruptions, domestic narrow plug-in hybrid exports to developing countries are surging with bright prospects.
The China Passenger Car Association noted that the core characteristics of the June auto market were "collapsing domestic sales of internal combustion engine vehicles, NEV firmly dominating, and exports surging strongly." The core pressure behind the decline in China's domestic auto market was internal combustion engine vehicles, with retail sales dropping 39% under the impact of high oil prices. In June, conventional internal combustion engine vehicles accounted for a 37.2% share, and their YoY decrease represented 78% of the total decline in passenger vehicles. Among these, ordinary hybrid models saw retail sales fall 7%, pure internal combustion engine vehicles fell 42%, and the internal combustion engine vehicle structure experienced further divergence. High oil prices, consumption transformation, and other factors accelerated the "oil-to-electric replacement" process. This month, the new energy retail penetration rate held at a historical high of 62.8%. The electrification transformation of joint-venture brands accelerated. In June, sales of new energy joint-venture car models grew 45% YoY, while internal combustion engine vehicle sales fell 39% YoY. Exports continued to be the core growth driver for the industry. In June, new energy exports accounted for 57% of total exports, a new high, while internal combustion engine vehicle export growth of 33% was also strong, resulting in superb dual growth of both oil and electric vehicles in China's going-global efforts.
Currently, the domestic auto market is characterized by intense competition for existing stock, and divergence within the industry continues to intensify. The new energy market has bid farewell to all-round growth, showing a polarized trend of "explosive growth in high-end EVs and pressure on low-end economy car models," with markets in counties and townships and entry-level models declining too sharply. At the same time, the "new car effect" has become short-lived, significantly weakening its ability to boost the market. Pressure on the channel side remains prominent, the industry's pace of passive destocking has accelerated, and dealers are generally suffering losses with escalating operational risks. Overall, the MoM strengthening of the auto market in June was merely a structural recovery; electrification iteration and overseas exports have become the core pillars of the industry's long-term growth.
Characteristics of the passenger car market in June 2026: 1. Total volume was under pressure with major structural divergence; "cold internal combustion engines, hot pure electric" became the biggest focus. The core reason for the domestic retail decline was the "collapse of internal combustion engines," which drove the new energy retail penetration rate to quickly exceed 60% and reach 62.8%, with the pace of electrification replacement surpassing expectations. 2. Mini EVs were under pressure, A-segment cars shrank, and entry-level consumption urgently needed support, with expectations for the introduction of economy EV standards. 3. Exports showed explosive growth, with new energy accounting for 57% of exports (a new high), and both new energy and self-owned brand dual-driven going global became the core growth engine. 4. Passive destocking characteristics were evident, channel inventory declined relatively rapidly, listed dealers were all in the red, and dealer survival pressure continued to intensify. 5. The breakthrough of self-owned brands in the high-end segment stood out, with passenger car retail penetration rates in consumer markets such as 200,000-300,000, 300,000-400,000, and above 400,000 all exceeding 50%.
June Delivery Data for New Force Automakers Released: Leap Motor Charges Ahead – How Are Automakers’ Annual Targets Progressing?
In early July, several domestic new force automakers successively announced their June delivery data, with many delivering impressive results:
In June, Leap Motor continued its unstoppable momentum, delivering 93,376 units globally, up 95% YoY. Its H1 cumulative deliveries reached 356,487 units. According to previous media reports, Leap Motor's full-year 2026 sales target is 1 million units, and its current target completion rate is around 35.65%. This year, Leap Motor's new car deliveries have been climbing steadily, and its outstanding performance has kept it firmly at the forefront among new force automakers. In July, Leap Motor continued its momentum by launching a car purchase event, "Summer Deals: Save This Summer." During the event, customers who place orders can enjoy limited-time comprehensive benefits worth up to 61,279 yuan, bundled with four lifetime free warranty services, premium services, and more, offering a sincere benefits package to bring users a more relaxed car ownership experience. As of June 18, 2026, Leap Motor's cumulative global deliveries surpassed 1.5 million units, marking an important milestone in the brand's development.
In June, NIO delivered 40,597 new vehicles, a single-month high for 2026, up 62.9% YoY. Among them, the NIO brand delivered 21,908 new vehicles, up 50.1% YoY; the Le Dao brand delivered 11,743 new vehicles, up 83.5% YoY; and the firefly brand delivered 6,946 new vehicles, up 76.7% YoY. As of now, NIO has cumulatively delivered 1,188,715 new vehicles. In H1 2026, NIO delivered a total of 191,123 new vehicles, reaching a record high, up 67.4% YoY. All three brands achieved record-high deliveries in H1.
According to public information, NIO previously stated that it hopes to maintain an annual sales growth of 40%–50%. Based on this, its 2026 sales target is 456,000 to 489,000 vehicles. As of now, its full-year sales completion rate is around 39.08%–41.9%. Meanwhile, as of now, NIO has been profitable for two consecutive quarters, entering the third phase of high-quality development. Its multi-brand strategy is steadily advancing, and synergistic efforts are driving rapid sales growth.
In June, XPeng Motors delivered 40,126 new vehicles, up 15.9% YoY; cumulative deliveries in Q2 reached 103,295 units. During the same period, the 10,000th XPeng GX rolled off the production line, global cumulative deliveries of the XPeng X9 surpassed 60,000 units, and the first SUV in the MONA series, the XPeng MONA L03, will make its China debut and start pre-sales on July 2, further enriching XPeng's product lineup and steadily advancing its global expansion.
In H1 2026, XPeng Motors cumulatively delivered 165,977 vehicles, achieving a sales target completion rate of approximately 27.66%–30.18% against its 2026 goal of 550,000 to 600,000 units. Notably, global cumulative deliveries of the XPeng X9 have now exceeded 60,000 units, setting a new record for the fastest delivery pace among new energy MPVs.
In June, Li Auto delivered 30,895 new vehicles. In H1 2026, Li Auto delivered a total of 193,472 vehicles. As of June 30, 2026, Li Auto's cumulative deliveries reached 1,733,687 units. In March this year, Li Auto's Chairman Li Xiang set a target of over 20% YoY sales growth for 2026, corresponding to 487,600 units for the full year. Currently, Li Auto's delivery completion rate for H1 stands at around 39.68%. In July, the new-generation Li Auto L6 will officially hit the market.
Xiaomi Auto's June deliveries continued to exceed 30,000 units, with its H1 sales at approximately 180,000 units, representing a completion rate of roughly 32.73% against the 550,000-unit sales target it announced in January 2026.
BYD, a globally renowned EV enterprise, reported NEV sales of 403,472 units in June, up 5.46% YoY. Its YTD production reached 1.8141 million units, down 15.11% YoY, while cumulative sales stood at 1.8085 million units, down 15.72% YoY. Passenger vehicle production was 396,400 units and sales were 397,300 units. Notably, in June, BYD's markets outside China maintained rapid growth, with passenger vehicle and pickup exports reaching 174,897 units, up 95% YoY.
In H1, BYD's cumulative sales reached 1,808,511 units, and its cumulative NEV sales surpassed 16.9 million units. According to publicly available information, its previously set sales target ranged from 5 million to 5.5 million units, against which its current completion rate is roughly between 32.88% and 36.17%.
Judging from the June report cards of BYD and these NEV startups, BYD and Leap Motor delivered outstanding performances. BYD's sales once again exceeded 400,000 units, while Leap Motor continued to refresh its delivery records, with global deliveries surpassing 90,000 units, securing its top spot in deliveries among NEV startups. NIO and XPeng Motors both surpassed the 40,000-unit delivery mark in June, each delivering commendable performances.
However, the above-mentioned automakers still face a certain gap between their current sales achievements and their annual sales targets, with Li Auto posting the highest completion rate of 39.68%. Nevertheless, hopes remain for the September-October peak season in H2, and with a flurry of favorable auto policies emerging recently, the subsequent performance of automakers is still worth looking forward to.
Policy side, on July 2, the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology issued an announcement on adjusting the preferential vehicle and vessel tax policies for energy-saving vehicles and NEVs. It was mentioned that starting January 1, 2027, the policy of halving vehicle and vessel tax for energy-saving vehicles will be abolished, as will the policy of exempting pure electric commercial vehicles, plug-in hybrid electric vehicles (including range-extended), and fuel cell commercial vehicles from vehicle and vessel tax. For the above-mentioned types of vehicles newly acquired by taxpayers or already acquired before the implementation of this announcement, vehicle and vessel tax shall be levied in accordance with the Vehicle and Vessel Tax Law of the People's Republic of China, its implementing regulations, and other relevant provisions.
Furthermore, on June 29, the China Automotive Power Battery Industry Innovation Alliance and the Zhongguancun Energy Storage Industry Technology Alliance jointly released the "Initiative for Standardizing Supplier Payment Practices for Power and ESS Battery Enterprises," which proposes standardized initiatives across multiple stages including order confirmation and changes, delivery and acceptance, payment and settlement, and contract terms. After the initiative was released, many power battery and ESS battery companies along China’s industry chain, including CATL, EVE, and Gotion High-tech, actively responded. An official from the Equipment Industry Division I of the Ministry of Industry and Information Technology commented that 11 key battery enterprises actively responded to the initiative and proposed relevant implementation measures, demonstrating their responsibility and commitment. The Ministry of Industry and Information Technology will give full play to the inter-departmental coordination mechanism, promptly resolve issues in implementation, and adopt multiple measures to promote the building of a collaborative and win-win development ecosystem for the entire industry chain of power and ESS batteries, fostering the healthy and sustainable development of the industry.
Looking ahead to H2, CAAM expects that the program of large-scale equipment upgrades and consumer goods trade-ins will continue to be implemented in an orderly manner, consumption in the automotive aftermarket is expected to usher in new growth opportunities, the supply of new products from enterprises will continue to be enriched, market prices will remain relatively stable, and the overall economic performance of the industry will improve further. At the same time, it should be noted that the external situation is complex and changing, uncertainties continue to increase, the problem of insufficient domestic demand remains prominent, and the industry still faces significant pressure. It is necessary to stabilize policy expectations, strengthen guidance and supervision, closely monitor changes in the international situation, effectively respond to risks and challenges, and steadily explore international markets.
