In early July 2026, CAAM and the CPCA sub-council successively released relevant data on the automotive market for June 2026 and H1. CAAM stated that in H1, China's auto industry operated generally steady, with cumulative declines in production and sales narrowing month by month. Market trends showed three key divergences: first, domestic demand was under obvious pressure, with sales dropping by double digits; second, exports exceeded expectations and provided stable support... SMM has compiled the relevant automotive market data for June 2026 and H1 for readers' reference.
Automotive
CAAM: June Auto Production and Sales Rose MoM; H1 Decline Narrowed Further vs. First 5 Months
In June, auto production and sales reached 2.76 million and 2.81 million units, up 5.5% and 6.9% MoM respectively, down 1.2% and 3.2% YoY respectively. From January to June, auto production and sales totaled 14.993 million and 15.017 million units, down 4% and 4.1% YoY respectively, with the declines narrowing further compared to the first five months.
CAAM: NEV Production and Sales Posted Steady Growth in June; H1 NEV Sales Accounted for 49.6% of Total New Vehicle Sales
In June, NEV production and sales reached 1.598 million and 1.643 million units, up 26% and 23.6% YoY, respectively. NEV new vehicle sales accounted for 58.5% of total new vehicle sales.
From January to June, NEV production and sales reached 7.438 million and 7.446 million units, up 6.7% and 7.3% YoY, respectively , with NEV new vehicle sales accounting for 49.6% of total new vehicle sales.
CAAM: June Auto Exports Surpassed 1 Million Units for First Time in History; NEV Exports Up 1.6 Times YoY
In June, auto exports reached 1.037 million units, up 11.6% MoM, up 75.1% YoY, with monthly exports surpassing 1 million units for the first time. In H1, auto exports reached 5.096 million units, up 65.3% YoY.
In June, NEV exports were 523,000 units, up 17.2% MoM, up 1.6 times YoY ; traditional fuel vehicle exports were 514,000 units, up 6.4% MoM and up 32.7% YoY. In H1, NEV exports totaled 2.355 million units, up 1.2 times YoY; traditional fuel vehicle exports reached 2.741 million units, up 35.5% YoY.
Regarding the H1 auto market, according to CAAM's analysis, in H1, China's auto industry operated generally steady, with the cumulative declines in production and sales narrowing month by month. Market flows exhibited three major divergences: First, domestic demand was clearly under pressure, with sales falling by double digits; export growth exceeded expectations, providing stable support. Second, the passenger vehicle market performed poorly, edging down slightly; the commercial vehicle market continued its positive trend, with sales maintaining growth. Third, the transition between old and new growth momentums continued, with the traditional ICE vehicle market shrinking further and NEVs growing steadily.
Meanwhile, the CPCA also released data on the passenger vehicle market in June. In June, retail sales of passenger vehicles in China totaled 1.602 million units, down 23.2% YoY and up 6.1% MoM. Cumulative retail sales for the year to date reached 8.701 million units, down 20.2% YoY. China's passenger vehicle market in June 2026 exhibited a trend of recovery characterized by "overall volume under pressure, sequential strengthening, and extreme structural divergence."
For passenger NEVs, June retail sales reached 1.007 million units, down 9.4% YoY and up 6.0% MoM; from January to June, retail sales of passenger NEVs totaled 4.704 million units, down 14.0% YoY. In June, retail sales of conventional ICE passenger vehicles were 600,000 units, down 39% YoY and up 6.3% MoM. Notably, sales of conventional hybrid models fell only 7% YoY and rose 24% MoM, an eye-catching performance.
As for NEV exports, June passenger NEV exports reached 499,000 units, up 152.7% YoY, up 17.6% MoM, accounting for 56.9% of passenger vehicle exports, up 15.9 percentage points from the same period last year. Of these, pure electric vehicles accounted for 58.7% of NEV exports (63.1% in the same period last year), with the core focus A00- and A0-class pure electric vehicles representing 53.8% of pure electric exports (51.2% in the same period last year). As the scale advantages of Chinese NEVs become evident and market expansion demand grows, an increasing number of Chinese-branded NEV products are going global, with recognition outside China continuing to rise. Specifically, narrowly defined plug-in hybrids accounted for 37.7% of NEV exports (33.4% last year), while extended-range EVs accounted for 3.6% (3.5% last year). Despite recent interference from some external countries, exports of domestic narrowly defined plug-in hybrids to developing countries have surged rapidly, with a bright outlook.
The CPCA stated that the core characteristics of the auto market in June were "a collapse in domestic ICE sales, strong dominance of NEVs, and surging exports." The core pressure on the domestic market downturn came from ICE vehicles, whose retail sales fell 39% under the impact of high oil prices. Their market share was 37.2% in June, and the year-on-year decline in ICE volume accounted for 78% of the total reduction in passenger car sales. Among them, retail sales of conventional hybrid models fell 7%, while pure ICE vehicles dropped 42%, further segmenting the ICE vehicle structure. High fuel prices, the consumer shift toward new energy vehicles, and other factors have accelerated the replacement of internal combustion engine vehicles by EVs. The new energy retail penetration rate stayed at a historical high of 62.8% this month. The electrification transition of joint venture brands has sped up, with joint venture new energy car model sales up 45% YoY in June, while internal combustion engine vehicle sales fell 39% YoY. Exports continued to be the industry’s core growth driver. New energy vehicles accounted for a record 57% of exports in June, while the 33% growth rate for internal combustion engine vehicle exports was also very strong, creating a super-strong performance where both new energy and internal combustion engine vehicles are going global at the same time.
The current domestic auto market is increasingly defined by a fight for existing market share, with divergence within the industry continuing to intensify. The new energy market bid farewell to all-around growth and has entered a polarized landscape where high-end EVs experience explosive growth while low-end, economy-oriented car models are under pressure, with the county and township markets and entry-level car model segments seeing overly sharp declines. At the same time, the "new car model effect" is becoming short-lived, significantly weakening its ability to boost the market. Pressure on the channel side remains prominent, the pace of passive industry destocking has accelerated, and dealers are generally suffering losses with climbing operational risks. Overall, the MoM market improvement in June was only structural recovery; electrification upgrades and overseas exports have become the core long-term support for industry growth.
The characteristics of the passenger vehicle market in June 2026: 1. Overall market under pressure with major structural divergence. The biggest focus is "cold internal combustion engine vehicles, hot battery EVs." The core reason for the domestic retail decline is the "internal combustion engine vehicle collapse," which pushed the new energy retail penetration rate rapidly past 60% to 62.8%, with the pace of electrification replacement exceeding expectations. 2. Mini EVs are under pressure, the A-segment car market is shrinking, and entry-level consumption urgently needs support; the launch of economy EV standards is eagerly awaited. 3. Exports showed explosive growth, with new energy vehicles accounting for 57% of exports (a record high). A new energy and domestic brand-led dual-drive globalization has become the core growth engine. 4. The characteristics of passive destocking are obvious, dealer inventories fell rapidly, listed dealers reported comprehensive losses, and dealers' survival pressure continues to intensify. 5. The high-end breakthrough of domestic brands was prominent, with retail sales for these brands accounting for over 50% in consumer market segments such as 200,000-300,000 yuan, 300,000-400,000 yuan, and above 400,000 yuan.
June delivery data for new forces in the auto industry is out, Leap Motor is gaining unstoppable momentum, and how are automakers progressing toward their annual targets?
At the beginning of July, several Chinese new force automakers released their June delivery data, with many enterprises reporting dazzling results:
In June, Leap Motor continued its unstoppable momentum, delivering 93,376 units globally, up 95% YoY, with cumulative H1 deliveries reaching 356,487 units. According to previous media reports, Leap Motor's full-year 2026 sales target is 1 million units, and its target completion rate now stands at about 35.65%. This year, Leap Motor's new vehicle deliveries have climbed steadily, securing a leading position among new car-making forces with this stellar performance. In July, Leap Motor continued to gain momentum with the launch of its "Summer Deals, Save in the Season" car purchase event. Customers who place orders during the event can receive limited-time benefits worth up to 61,279 yuan, plus four lifetime free warranties and premium services. This generous package aims to provide users with a more hassle-free car ownership experience. As of June 18, 2026, Leap Motor's global cumulative deliveries surpassed 1.5 million units, marking a significant milestone in the brand's development.
In June, NIO delivered 40,597 new vehicles, a new monthly high since 2026, up 62.9% YoY. Among them, the NIO brand delivered 21,908 units, up 50.1% YoY; the Ledo brand delivered 11,743 units, up 83.5% YoY; and the Firefly brand delivered 6,946 units, up 76.7% YoY. To date, NIO has cumulatively delivered 1,188,715 new vehicles. In H1 2026, NIO delivered a total of 191,123 new vehicles, hitting a record high, up 67.4% YoY, with deliveries of all three brands reaching record highs in the first half.
According to publicly available information, NIO previously stated that it aims to maintain annual sales growth of 40% to 50%. Based on this, its 2026 sales target is 456,000 to 489,000 units. As of now, its full-year sales completion rate is around 39.08% to 41.9%. Meanwhile, as of now, NIO has achieved profitability for two consecutive quarters, entering the third phase of high-quality development. Its multi-brand strategy is steadily progressing, and synergies are driving rapid sales growth.
In June, XPeng Motors delivered 40,126 new vehicles, up 15.9% YoY, with Q2 cumulative deliveries reaching 103,295 units. During the same period, the 10,000th XPeng GX rolled off the production line, and global cumulative deliveries of the XPeng X9 exceeded 60,000 units. The first SUV in the MONA series, the XPeng MONA L03, will make its China debut and start pre-sales on July 2. XPeng's product lineup is further enriched, and its global expansion continues to advance.
In H1 2026, XPeng Motors delivered 165,977 vehicles, representing a completion rate of around 27.66% to 30.18% against its 2026 sales target of 550,000 to 600,000 units. It is worth mentioning that global cumulative deliveries of the XPeng X9 have now exceeded 60,000 units, setting a new record for the fastest delivery speed of an MPV by a new energy startup.
In June, Li Auto delivered 30,895 new vehicles. In H1 2026, Li Auto delivered a total of 193,472 new vehicles. As of June 30, 2026, Li Auto's historical cumulative deliveries reached 1,733,687 units. In March this year, Li Auto's chairman Li Xiang proposed a YoY sales growth of over 20% in 2026, corresponding to a full-year target of 487,600 units. Currently, its H1 delivery completion rate is around 39.68%.In July, the new generation Li Auto L6 will also be officially launched.
Xiaomi’s June deliveries continued to exceed 30,000 units, with its H1 sales at around 180,000 units, achieving approximately 32.73% of its sales target of 550,000 units announced in January 2026.
Meanwhile, BYD, a globally renowned EV enterprise, sold a total of 403,472 NEVs in June, up 5.46% YoY. Its cumulative production for the year reached 1.8141 million units, down 15.11% YoY, and cumulative sales reached 1.8085 million units, down 15.72% YoY. Among these, passenger vehicle production was 396,400 units and sales were 397,300 units. Notably, in June, BYD’s markets outside China continued to see rapid growth, with overseas sales of passenger vehicles and pickups reaching 174,897 units, up 95% YoY.
In H1, BYD’s cumulative sales reached 1,808,511 units, and cumulative NEV sales exceeded 16.9 million units. According to public information, its previously set sales target was between 5 million and 5.5 million units, and its current achievement rate is around 32.88%–36.17%.
Looking at the June report cards of BYD and these new force automakers, BYD and Leap Motor stood out: BYD’s sales once again surpassed 400,000 units, while Leap Motor continued to set new delivery records, with over 90,000 global deliveries keeping it firmly in the top spot among new force automakers. Both NIO and XPeng Motors exceeded 40,000 deliveries in June, delivering commendable performances.
However, the sales achievements of these automakers still fall short of their annual sales targets. The highest achievement rate is Li Auto’s 39.68%. That said, expectations remain for the September-October peak season in H2, and with the recent rollout of multiple favorable policies for the auto industry, automakers’ subsequent performance is still expected to be promising.
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, stating that from January 1, 2027, the policy of halving the vehicle and vessel tax for energy-saving vehicles will be abolished, and the exemption of vehicle and vessel tax for pure electric commercial vehicles, plug-in hybrid (including range-extended) vehicles, and fuel cell commercial vehicles will also be abolished; taxpayers who newly acquire or have already acquired such vehicles before this announcement takes effect shall be subject to vehicle and vessel tax 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 Regulating Supplier Payment for Power and ESS Battery Enterprises," which set out norms and initiatives for multiple stages including order confirmation and changes, delivery and acceptance, payment and settlement, and contract duration. After the release of this initiative, enterprises in China's power battery and ESS battery industry chain, including CATL, EVE, and Gotion High-tech, actively responded. The relevant official of the Equipment Industry Section I under the Ministry of Industry and Information Technology commented that the 11 key battery enterprises actively responded to the initiative and proposed relevant implementation measures, demonstrating the responsibility and commitment of enterprises. The Ministry of Industry and Information Technology will fully leverage the role of departmental coordination mechanisms, promptly resolve issues in implementation, and take multiple measures to promote the establishment of a collaborative and win-win development ecosystem for the entire industry chain of power batteries and ESS batteries, fostering healthy and sustainable industrial development.
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, and consumption in the automotive aftermarket is expected to see new growth opportunities, with new product supply from enterprises continuously enriched, market prices relatively stable, and the overall economic operation of the industry further improving. At the same time, it must be noted that the external environment is complex and volatile, uncertainties continue to increase, the issue of insufficient domestic demand remains prominent, and industry operations still face significant pressure. It is necessary to stabilize policy expectations, strengthen guidance and regulation, closely monitor changes in the international situation, effectively address risks and challenges, and steadily expand international markets.
![[Lithium Battery: Envision AESC's Large Cylindrical Battery Products Have Entered Mass Production]](https://imgqn.smm.cn/usercenter/bgmfe20251217171703.jpg)
![[Automotive: Toyota To Relocate Production Of Pickup Trucks From Mexican Factory To Texas]](https://imgqn.smm.cn/usercenter/DStlS20251217171703.jpg)
