Retail sales of passenger cars in China fell 21% year over year to about 1.5 million units in July, according to data from the China Passenger Car Association released Tuesday.
Retail sales of gasoline-powered vehicles slid 41% year over year, with that of pure gasoline cars falling 44% and conventional hybrids slipping 4% year over year. Domestic branded vehicles declined 46%, all due to high oil prices, the CPCA said.
New energy passenger vehicle sales fell 3.9% year over year to 951,000 units, with domestic brands declining 4%, mainstream joint ventures rising 36%, and luxury brands decreasing 23%.
Retail penetration of new energy vehicles in China reached 65.1% in July, up from 53.5% a year earlier and from 63% in June.
Overall retail passenger car sales in China fell 20% in the first seven months of 2026 to nearly 10.2 million units.