Preliminary figures from the China Passenger Car Association (CPCA) indicate that retail sales of passenger new energy vehicles (NEVs) in China reached 974,000 units in May, representing a 5% decline year-on-year but a 15% increase over April. This marks the fifth consecutive month of year-on-year declines in NEV retail sales. For the first five months of 2026, cumulative retail sales of passenger NEVs totaled 3.732 million units, down 14% compared with the same period last year.
Overall retail sales of passenger cars in China were 1.545 million units in May, a 20% drop year-on-year, although they rose 12% from April. The broader market’s sharper decline helped push the NEV retail penetration rate to a record 63% in May, up from 61.4% in April. Year-to-date, passenger car retail sales stood at 7.15 million units, down 19% from the first five months of 2025, as weak demand continues to pressure the market.
Weekly average daily retail volumes of passenger cars in May showed mixed momentum:
- First week (May 1–5): 30,934 units per day (down 26% year-on-year, up 26% month-on-month).
- Second week (May 6–10): 50,536 units per day (down 17% year-on-year, up 43% month-on-month).
- Third week (May 11–17): 39,019 units per day (down 26% year-on-year, up 7% month-on-month).
- Fourth week (May 18–24): 44,139 units per day (down 26% year-on-year, down 9% month-on-month).
- Fifth week (May 25–31): 79,411 units per day (down 13% year-on-year, down 2% month-on-month).
On the wholesale side, passenger NEV volumes hit 1.365 million units in May, up 12% year-on-year and 11% from April. Cumulative NEV wholesales for the year stood at 5.318 million units, a 2% increase year-on-year. Overall passenger car wholesales were 2.232 million units in May (down 4% year-on-year, up 6% month-on-month), with NEVs accounting for 61.1% of the total, up from 58.0% in April. Year-to-date total passenger car wholesales were 10.21 million units, down 6% year-on-year.
Production of pure internal combustion engine light vehicles fell sharply to 535,000 units in May, a 45% year-on-year decline, underscoring ongoing challenges for traditional fuel-powered models. Despite these declines, most automakers reported a sales rebound in May, suggesting the market is gradually emerging from the year’s off-season.
Source: CNEV Post
