China's Car Market Sees New Energy Vehicles Surpass Traditional Sales as New Energy Vehicles Outsell Traditional Cars in China for First Time

More than half of new passenger cars sold in China in July were new energy vehicles, including battery-only and hybrid cars. This is the first time new energy vehicles outsold traditional fuel cars every month. BYD, Li Auto, and other Chinese car companies are seeing more consumer preference for hybrid over battery-only electric vehicles. The government has supported new energy vehicles for over a decade through subsidies and policies to boost adoption. China, the world’s largest car market, is experiencing slowed economic growth and a price war in the new energy vehicle sector due to intense competition.