China's new-energy vehicle (NEV) production and sales kept growing at double-digit rates in the first three quarters of 2026, data released on October 12 by the China Association of Automobile Manufacturers (CAAM) showed, as the supply chain continued to mature and market competitiveness kept rising — making NEVs one of the key engines driving China's economic growth. According to CAAM, NEV production reached 12.483 million units and sales reached 12.472 million units from January to September, up 11 percent and 11.1 percent year-on-year respectively. NEVs' cumulative share of total new car sales rose to 53.6 percent, more than 7 percentage points higher than the 46.1 percent recorded in the same period of 2025. For reference, China's full-year 2025 NEV production and sales totaled 16.626 million and 16.49 million units respectively, meaning this year's first three-quarter total already equals roughly 75 percent of last year's full-year volume, putting the full-year 2026 figure on track for a new record.

September alone was also strong: NEV production and sales came in at 1.814 million and 1.823 million units, up 12.2 percent and 13.6 percent year-on-year. NEVs' share of new car sales that month reached 61.6 percent — the third consecutive month above 60 percent, signaling that NEVs have shifted from a policy-driven niche to the mainstream of China's car market. Exports also kept climbing: NEV exports totaled 4.006 million units in the first three quarters, up 130 percent year-on-year, with September exports alone reaching 571,000 units, up 160 percent year-on-year and 8.6 percent from August — a key driver of overall auto export growth.

Looking at the broader auto market, China's overall vehicle production and sales stood at 23.246 million and 23.271 million units in the first three quarters, roughly flat to slightly down year-on-year. Domestic sales fell 22.4 percent to 15.066 million units, while exports surged 65.8 percent to 8.205 million units, offsetting weaker domestic demand. CAAM analysts said the shift reflects both intensifying competition and price wars that have suppressed some domestic demand, and the rapidly rising global competitiveness of China's auto industry, particularly its NEV supply chain.

At the company level, domestic brands led by BYD continued to dominate the NEV market. Industry data showed BYD's global sales at roughly 456,700 vehicles in September, down year-on-year, with domestic sales of about 282,900 units, down 13 percent, while exports reached 180,700 units, extending this year's rapid overseas expansion. Brands such as Leapmotor and Geely Galaxy followed closely behind, as China's roster of NEV brands keeps expanding across segments from entry-level to premium.

Further up the supply chain, Chinese battery makers extended their global lead. According to South Korea's SNE Research, global installations of EV power batteries reached 725.2 gigawatt-hours from January to July 2026, up 20.4 percent year-on-year. CATL alone installed 289.6 GWh, keeping its position as the world's top supplier with a 39.9 percent market share, while BYD ranked second with 106.7 GWh. Chinese firms accounted for seven of the top ten global battery suppliers, together holding more than 70 percent of the market. Meanwhile, China's charging infrastructure kept expanding: National Energy Administration data showed the country's total charging points exceeded 23.68 million by the end of July 2026, up 41.9 percent year-on-year, underpinning the continued rise in NEV sales. China also dominates the global NEV market overall: a monthly report from the U.S.-based Alliance for Automotive Innovation showed combined global sales of battery-electric, plug-in hybrid and fuel-cell vehicles at about 5.6 million units from January to April 2026, roughly flat year-on-year, with China accounting for about 49 percent of that global total — underscoring its position as the world's largest NEV market and a key base supporting the continued growth of China's vehicle and parts exports.

Continued policy support has also underpinned NEV demand. Under the 2026 vehicle trade-in rules jointly issued late last year by the National Development and Reform Commission and the Ministry of Finance, consumers who scrap an old car to buy a new-energy passenger vehicle can receive a subsidy of up to 12 percent of the vehicle price, capped at 20,000 yuan, while those who sell on an old car for a new one can receive up to 15,000 yuan. The purchase-tax exemption for NEVs, previously a full waiver, was changed to a 50-percent reduction starting this year, with the transition period extended through the end of 2027 — reflecting a shift from broad subsidies toward more targeted support. Separately, a stricter mandatory battery safety standard took effect July 1, adding 24 extreme destructive tests and requiring that batteries neither catch fire nor explode during thermal runaway, raising the technical bar for the industry.

The NEV sector's sustained growth is becoming an important pillar of China's broader economy. As demand in the overall auto market matures and price competition intensifies, NEVs — propelled by product upgrades and exports — continue to expand faster, driving coordinated growth across batteries, motors, electronic controls and connected-car technology. At the same time, the accelerating push of Chinese NEVs into Europe and other overseas markets keeps the EU-China standoff over electric-vehicle tariffs in focus. The European Union earlier imposed countervailing duties on Chinese-made EVs, and the two sides have held multiple rounds of talks this year on alternatives such as minimum price floors and quota arrangements, with some models granted case-by-case exemptions — though a comprehensive, industry-wide settlement has yet to be reached.

Analysts expect China's NEV production and sales to maintain their high growth trajectory into the fourth quarter as the traditional car-buying season combines with continued trade-in incentives, with full-year output and sales likely to set new records — further underscoring NEVs' role as a new engine of China's economic growth. CAAM also cautioned that, against a backdrop of slowing demand growth in the overall passenger-car market and intensifying price competition, NEV makers still need to keep investing in technological innovation, cost control and regulatory compliance in overseas markets to sustain the hard-won pace of growth.