EVs capture two-thirds of China's car market in record-breaking week
China's new energy vehicles (NEVs) reached a record share, accounting for more than two-thirds of all vehicle sales according to weekly data from the China Association of Automobile Manufacturers. According to the South China Morning Post, the record was driven by aggressive price cuts at BYD, Geely and XPeng. European automakers continue to struggle to hold their share of the Chinese market.
The latest weekly sales data from the China Association of Automobile Manufacturers (CAAM) showed that new energy vehicles (NEVs) accounted for 67% of all vehicle sales. According to the South China Morning Post, the data was released after BYD cut prices on its flagship model by 15% and Geely ran a promotion campaign in its Galaxy series. XPeng and Li Auto also reported record weekly deliveries.
The price cuts came as consumer confidence rebounded from its low in March 2026. The CAAM Vice President said traditional combustion-engine makers would need to accelerate their electrification plans in order to defend market share. Volkswagen and Mercedes-Benz reported in their latest quarterly results that their China sales had fallen by 8% and 6% respectively.
Goldman Sachs analysts projected that the Chinese NEV market could surpass the 75% threshold by the end of 2027 and said the price war would squeeze battery supply chain margins. Signals from CATL and LG Energy Solution on borrowing costs after interest rate moves are being watched closely. BYD and Geely shares ticked higher on the Hong Kong and Shanghai exchanges. This is not investment advice.
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