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. Factors such as high oil prices and consumption transformation accelerated the "oil-to-electric substitution" process; in June, the new energy retail penetration rate remained at a historic high of 62.8%. The electrification transition of joint venture brands accelerated, with sales of new energy joint venture models up 45% YoY in June, while internal combustion engine vehicle sales fell 39% YoY. Exports continued to hold a core growth position in the industry, with new energy exports accounting for a record 57% of total exports in June, and the 33% growth rate of internal combustion engine vehicle exports also performed strongly, forming an exceptionally strong performance of dual growth in both gasoline vehicles and EVs in China's overseas expansion.
The current domestic auto market is prominently characterized by stock competition, with divergence within the industry continuing to intensify. The new energy market bid farewell to broad-based growth, presenting a polarized trend of "high-end EVs booming while low-end economy models are under pressure," with county and township markets and entry-level models seeing excessive declines. At the same time, the "new model effect" was short-lived, greatly weakening its boosting effect on the market. Pressure on the distribution channel remained prominent, the pace of passive destocking in the industry quickened, and dealers generally suffered losses, with operating risks climbing. Overall, the MoM upturn in the June auto market was merely a structural repair; electrification iteration and overseas exports had become the core pillars of long-term industry growth.
Characteristics of the passenger car market in June 2026: 1. Overall volume under pressure and significant structural divergence; "cold gasoline, hot pure electric" became the biggest focus. The core reason for the domestic retail decline was that the "gasoline car collapse" pushed the NEV retail penetration rate quickly past 60% to 62.8%, with electrification substitution speed exceeding expectations. 2. Mini EVs were under pressure, A-class cars shrank, entry-level consumption urgently needed support, and standards for economy EVs were eagerly awaited. 3. Exports showed explosive growth, with new energy accounting for 57% of exports (a record high). NEVs and self-owned brands jointly drove overseas expansion, becoming the core growth engine. 4. Passive destocking was evident, channel inventories declined rapidly, listed dealers were broadly in the red, and survival pressure on dealers continued to increase. 5. The high-end breakthrough of self-owned brands was prominent, with passenger car retail sales in consumption markets such as 200,000-300,000, 300,000-400,000, and above 400,000 all exceeding 50%.
In terms of power batteries
From January to June, China's cumulative production of power and ESS batteries was 1,068.9 GWh, up 53.3% YoY.
In June, the combined production of China's power and ESS batteries was 206 GWh, up 7.5% MoM and 59.5% YoY. From January to June, China's cumulative production of power and ESS batteries was 1,068.9 GWh, up 53.3% YoY.
From January to June, China's cumulative exports of power and ESS batteries were 181.3 GWh, up 42.5% YoY.
In June, China's combined exports of power and ESS batteries were 36.2 GWh, up 23.7% MoM and 48.7% YoY, accounting for 18.5% of that month's sales. Among which, power battery exports stood at 25.5 GWh, accounting for 70.3% of total exports, up 26.6% MoM and up 60.8% YoY; ESS battery exports stood at 10.7 GWh, accounting for 29.7% of total exports, up 17.3% MoM and up 26.1% YoY.
From January to June, China's cumulative exports of power and ESS batteries reached 181.3 GWh, up 42.5% YoY, accounting for 18.5% of cumulative sales. Among which, cumulative power battery exports were 122.7 GWh, accounting for 67.7% of total exports, up 50.3% YoY; cumulative ESS battery exports were 58.6 GWh, accounting for 32.3% of total exports, up 28.5% YoY.
From January to June, domestic power battery installations reached 335.6 GWh, up 12.0% YoY.
In June, domestic power battery installations were 76.5 GWh, up 6.4% MoM and up 31.5% YoY. Among these, ternary battery installations stood at 12.7 GWh, accounting for 16.5% of total installations, down 5.5% MoM but up 18.1% YoY; LFP battery installations stood at 63.7 GWh, accounting for 83.3% of total installations, up 9.2% MoM and up 34.4% YoY.
From January to June, domestic power battery installations reached 335.6 GWh, up 12.0% YoY. Among these, cumulative ternary battery installations were 63.4 GWh, accounting for 18.9% of total, up 14.2% YoY; cumulative LFP battery installations were 272.0 GWh, accounting for 81.0% of total, up 11.5% YoY.
June delivery data for new automakers released: Leap Motor surged ahead—how are automakers progressing toward annual targets?
In early July, several domestic new automakers successively released their June delivery figures, with many reporting impressive results:
In June, Leap Motor continued its unstoppable momentum, delivering 93,376 units globally, up 95% YoY, and its cumulative H1 deliveries reached 356,487 units. According to earlier media reports, Leap Motor’s full-year 2026 sales target is 1 million units, with around 35.65% of the target achieved so far. This year, Leap Motor’s new vehicle deliveries have been “climbing steadily,” and its impressive performance keeps it at the forefront among new automakers. In July, Leap Motor continued to push forward, launching a “Summer Sale: Save This Season” car purchase campaign. During the promotion, placing an order grants limited-time comprehensive benefits worth up to 61,279 yuan, plus four lifetime free warranty and premium services, offering users a cost-effective and easier car ownership experience with a sincere benefits package. As of June 18, 2026, Leap Motor's global cumulative deliveries surpassed 1.5 million units, achieving a significant milestone in the brand's development.
NIO delivered 40,597 new vehicles in June, setting a new monthly record for 2026, up 62.9% YoY. Among these, the NIO brand delivered 21,908 new vehicles, up 50.1% YoY; the LeDao 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, a new all-time high, up 67.4% YoY, with H1 deliveries of all three brands setting new records.
According to public information, NIO previously expressed its hope to maintain annual sales growth of 40% to 50%. Based on this, the 2026 sales target is 456,000 to 489,000 units. As of now, its annual sales completion rate is approximately 39.08% to 41.9%. Meanwhile, as of now, NIO has achieved profitability for two consecutive quarters, entering the third stage of high-quality development. Its multi-brand strategy is advancing steadily, with synergy driving rapid sales growth.
XPeng Motors delivered 40,126 new vehicles in June, up 15.9% YoY; its cumulative Q2 deliveries reached 103,295 units. During the same period, the XPeng GX celebrated the roll-off of its 10,000th vehicle, and global cumulative deliveries of the XPeng X9 surpassed 60,000 units. The MONA series' first SUV, the XPeng MONA L03, will make its China debut and commence pre-sales on July 2, further enriching XPeng's product matrix while its global expansion continues to advance.
In H1 2026, XPeng Motors' cumulative deliveries reached 165,977 units, with its completion rate against the 2026 sales target of 550,000 to 600,000 units standing at approximately 27.66% to 30.18%. Notably, global cumulative deliveries of the XPeng X9 have now surpassed 60,000 units, setting a new record for the fastest delivery pace among startup-brand MPVs.
Li Auto delivered 30,895 new vehicles in June. In H1 2026, Li Auto delivered a total of 193,472 new vehicles. As of June 30, 2026, Li Auto's cumulative historical deliveries reached 1,733,687 units. In March this year, Li Auto's Chairman Li Xiang proposed a 2026 sales growth target of over 20% YoY, corresponding to full-year sales of 487,600 units. Currently, its H1 new vehicle delivery completion rate is at around 39.68%. In July, the new-generation Li L6 will also be officially launched.
Xiaomi Motors' June deliveries continued to exceed 30,000 units, with its H1 sales at around 180,000 units, compared with the 550,000-unit sales target announced in January 2026, the completion rate reached approximately 32.73%.
BYD, a globally renowned EV enterprise, recorded NEV sales of 403,472 units in June, up 5.46% YoY. Its year-to-date production reached 1.8141 million units, down 15.11% YoY, while cumulative sales totaled 1.8085 million units, down 15.72% YoY. Among these, passenger vehicle production stood at 396,400 units and sales at 397,300 units. Notably, BYD continued its rapid growth in markets outside China in June, with overseas sales of passenger vehicles and pickups reaching 174,897 units, up 95% YoY.
In H1, BYD's cumulative sales rose to 1,808,511 units, and cumulative NEV sales exceeded 16.9 million units.According to public information, its previously set sales target ranged from 5 million to 5.5 million units, and the current completion rate stands at around 32.88%–36.17%.
Judging by the June report cards of BYD and the several new force automakers, BYD and Leap Motor delivered strong performances. BYD's sales once again surpassed 400,000 units, while Leap Motor continued to refresh its delivery record, with global deliveries exceeding 90,000 units, maintaining its top position in deliveries among new force automakers. Both NIO and XPeng Motors saw June deliveries exceed 40,000 units, with commendable performances.
However, the sales performance of these automakers still lags behind their annual sales targets, with Li Auto achieving the highest completion rate at 39.68%. Even so, the September-October peak season expectations remain in H2, and coupled with the recent roll-out of various favorable auto policies, the subsequent performance of automakers is still worth anticipating.
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 preferential vehicle and vessel tax policies for energy-saving vehicles and NEVs. It stated that starting from January 1, 2027, the policy of halving vehicle and vessel tax for energy-saving vehicles will be canceled, along with the exemption from vehicle and vessel tax for pure electric commercial vehicles, plug-in hybrid (including extended-range) electric vehicles, and fuel cell commercial vehicles. For the above vehicle types newly acquired by taxpayers or 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 implementation regulations, and other relevant provisions.
In addition, on June 29, the China Automotive Power Battery Industry Innovation Alliance and the Zhongguancun Energy Storage Industry Technology Alliance jointly released the "Initiative on Standardizing Supplier Payment Practices for Power and ESS Battery Enterprises," which sets forth standardized initiatives on multiple aspects including order confirmation and changes, delivery and acceptance, payment and settlement, and contract duration. Following the release, multiple domestic power battery and ESS battery industry chain enterprises, including CATL, EVE, and Gotion High-tech, responded positively. An official from the First Department of Equipment Industry of the Ministry of Industry and Information Technology (MIIT) commented that 11 key battery enterprises actively responded to the initiative and proposed relevant implementation measures, reflecting their responsibility and commitment. The MIIT will fully leverage the role of interdepartmental coordination mechanisms, promptly resolve problems encountered during implementation, and adopt multiple measures to promote the building of a collaborative and mutually beneficial development ecosystem across the entire power battery and ESS battery industry chain, thereby 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, the automotive aftermarket consumption 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 operation of the industry will improve further. At the same time, it must be noted that the external environment is complex and volatile, uncertainties continue to increase, the problem of insufficient domestic demand remains prominent, and the industry still faces considerable pressure. It is necessary to stabilize policy expectations, strengthen guidance and oversight, closely monitor changes in the international situation, effectively respond to risks and challenges, and steadily explore international markets.
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