Passenger car sales in China shifted further toward electrification in August, with gas-powered retail sales falling 40% year over year as new energy vehicle penetration reached a record 65.2%, according to data released by the China Passenger Car Association (CPCA) on Tuesday.
Total passenger car retail sales in China reached 1.54 million units last month, down 23.6% from August 2025 but up 5.5% from July. New energy vehicle retail sales, which include battery-electric vehicles, plug-in hybrids, and hydrogen vehicles, totaled 1.005 million units. That was down 10.1% year over year but up 5.7% from the previous month.
Based on the CPCA figures, sales of internal combustion engine passenger cars fell to about 536,000 units in August from roughly 894,000 a year earlier. Their market share declined to 34.8%. Among powertrain categories, battery-electric vehicles were the only segment to continue growing, with 698,000 units sold, up 1.7% year over year and 7.9% month over month.
Plug-in hybrid sales continued to weaken, with 307,000 units sold in August, down 25.8% from a year earlier. In the overall NEV mix, battery-electric vehicles accounted for 69.5% of sales, while plug-in hybrids made up 30.6%.
The CPCA said higher fuel costs contributed to weaker demand for gasoline vehicles. According to the association, gasoline prices in China have risen by more than 1,720 yuan per tonne since the beginning of 2026, including a 180 yuan increase since late July. The average price of 95-octane gasoline in China is currently about 8.7 yuan per liter.
For the first eight months of the year, China’s passenger car retail sales totaled 11.7 million units, down 20.8% year over year. NEV retail sales reached 6.7 million units, down 11.6%, while ICE sales totaled 5 million units, down 30%.
Exports remained a bright spot for automakers. Passenger car exports rose 77.8% to 888,000 units in August, while NEV exports increased 154.7% to 518,000 units.
Source: CarNewsChina
