The ICE Meltdown Continues — July’s China EV Sales Report (44% BEV Share)

China's new energy vehicle market reached a record 65% plugin share in July 2026, with BEVs alone hitting a record 44% share, according to CleanTechnica's monthly sales report. Overall car sales fell 21% year-over-year to about 1.5 million units, while pure petrol model sales crashed 44%, and BEV sales rose 6% to 647,000 units. The report projects China's 2026 EV share will reach around 60%, with BEVs above 40%, and notes exports surged 148% year-over-year to over half a million units in July.

The ICE Meltdown Continues — July’s China EV Sales Report 44% BEV Share Support CleanTechnica's work through a Substack subscription https://cleantechnica.substack.com/subscribe , on Patreon https://www.patreon.com/cleantechnica , or on Stripe https://cleantechnica.fundjournalism.org/contribute/ . Help us produce all of the high-quality, original content we publish week after week https://cleantechnica.com/2026/07/14/10/ despite the challenges of content-scraping AI, antisocial media, inflation, and other hurdles. Petrol model sales crash 44% in July High gas prices and a never-ending wave of new BEVs has allowed July to reach record EV market share, with plugins reaching a record 65% However, while record market share was achieved in the past thanks to strong EV sales, this time, the record achievement is thanks to a significant ICE internal combustion engine crash. The overall market dropped 21% year over year YoY , to around 1.5 million sales. ICE-powered models were at the epicenter of this disruption, with pure petrol bearing the bulk of the sales drop -44% YoY . Rather surprisingly, HEVs dropped by only 4%, less than plugin hybrids PHEVs , which fell 21% in July, and extended range models EREVs , which were down 17 % . Considering the doom and gloom described above, there was still reason for hope. And what might that be? Pure electrics. Despite having fewer incentives, BEVs were up 6% YoY, to 647,000 sales. This meant that BEVs scored a record 44% BEV share in China Adding PHEVs 21% share to the tally meant that in July, a record 65% of all cars sold in China had a plug Comparing this result with where we were a year ago, it is an 11% share improvement. In July 2025, the plugin share was 54%…. If this trend continues in the future, the Chinese market will be fully electrified before 2030, and 100% BEV before 2035 This great result pulled the 2026 share up, to 56%, already 2% above the full year result of 2025. BEVs on their own were up to 37% versus 33% in 2025 . At this pace, I expect the final number for 2026 EV share in China to be around 60%, with BEVs alone north of the 40% mark. And when the largest global automotive market gets this electrified … then the ICE industry is in serious trouble. Which means that investing money in R&D for ICE technology today is throwing money out the window, as there won’t be enough time to pay back the investment costs. Another interesting statistic is that the breakdown between pure electrics and plugin hybrids is shifting, to the profit of BEVs. At the beginning of the year, PHEVs were profiting from the incentive-derived BEV drop, but pure electrics are returning with a vengeance. July showed a 68% vs. 32% breakdown, to the benefit of BEVs, with the 2026 average at 66%/34%. Historically, this is the highest BEV share since 2023, and a step in the return to the 80% vs 20% breakdown of the first years in the Chinese EV market. With PHEVs losing incentives at the end of this year https://source.benchmarkminerals.com/article/china-to-end-vehicle-tax-exemption-for-plug-in-hybrids-and-range-extended-evs-in-2027 , 2027 could be the first year since 2022 to see that kind of sales breakdown. Another seismic change happening in the Chinese automotive industry is the increasing importance of exports for local OEMs. In July alone, over half a million units were exported, a 148% jump YoY, with the EV share of those exports following closely the domestic market — 59% EV share in July vs 45% in July ’25. Due to these significant monthly EV exports from Chinese automakers, legacy OEMs are not only struggling in the Chinese market, which is the largest in the world, but also being squeezed elsewhere, so it is nothing more than a pipe dream to think that they can sustain the Chinese tsunami by keeping their ICE models in markets outside China. As a secondary effect of this export push is that because Chinese exports are also heavily electrified, at around half of the volumes, export markets are also being electrified as Chinese OEMs gradually gain share. The ICE meltdown is also visible in the overall ranking . In the first months of the year, ICE models were populating the top positions, but following what happened in May and June, we have another all-EV top 10 in July in the overall market, seven of them being pure electric models Looking at the best sellers in several size categories , EV disruption is also quite visible. With the exception of the C-segment, all other size categories had 100% plugin podiums, and of these, only four models were not 100% BEV. Having a quick look at the five size categories, the highlight is the surprise leadership of the Qiyuan/Nevo Q05 crossover in the compact category, with the other surprise being the only ICE representative belonging to Toyota, in this case the Corolla Cross, ending July in 3rd. Brand loyalty still counts, doesn’t it, Toyota? The question is — for how long? I believe it will be a matter of time until models like the MG 4 or XPENG’s Mona EVs the Mo3 and the upcoming L03 https://en.wikipedia.org/wiki/XPeng Mona L03 will be able to remove that last of the ICE representatives from the compact podium. In the full size category, the NIO ES8 has managed to keep the Xiaomi YU7 off of the podium, but with a rising Leapmotor D19 ending some 200 units behind the big NIO, we might have a surprise here in August…. Also, two notes regarding the two smallest categories: The B segment is having its best moment ever as brands try to replicate the Geely Xingyuan formula. No one has so far managed to get close to it, but Leapmotor might be on the way there, as its new A10 crossover continues to ramp up production. And Leapmotor is not done yet with the B segment, as the A05 hatchback, a true Geely Xingyuan fighter , is set to land soon. And with a new-generation BYD Seagull also landing soon, now aimed squarely at beating the Geely Xingyuan, the subcompact category is now the hottest thing in the Chinese EV market. As for city cars, sales are affected by the subsidy cut that came at the beginning of the year, with the category slowly recovering from the dismal results of the early months. While the Wuling Mini EV is still the only relevant player overall, the Changan Lumin has reached 7,596 units in July, a new year best, allowing it to win silver in the category, beating Bestune’s Xiaoma and Geely’s Panda. But what the category really needed was fresh metal. BYD Racco https://en.wikipedia.org/wiki/BYD Racco , anyone?… Here’s more info and commentary on July’s top selling electric models: 1 — Geely Xingyuan A BYD Dolphin for BYD Seagull money $10,000 USD . This was Geely’s internal memo to describe the formula for the Geely Xingyuan when developing its star model. With an interesting name — Xingyuan translates as “wishing upon a star” — it seems that Geely had its wish granted. The small hatchback has given the Hangzhou OEM the much coveted best selling model trophy. In July, the Geely model won another best seller trophy, thanks to 32,306 registrations , which nevertheless represented a 27% drop over July 2025. Proof that competition never sleeps in China, Geely’s hatchback is now having to deal with Leapmotor’s B-segment contenders, the A10 and A05, the new-generation Wuling Bingo, Chery’s new QQ3, let’s not forget about the BYD’s Yuan Up, and, above all, the new-generation BYD Seagull, which has just one goal — to steal the Xingyuan’s crown. 2 — BYD Song BEV+PHEV BYD’s midsize SUV is in a transition stage, and you can tell. Thanks to the ramp-up of the new Ultra body, BYD’s star player was 2nd, scoring 27,712 registrations . It thus narrowed the YoY sales drop to just 7%. Once the new generation is fully ramped up, the Song will once again be a fierce adversary for the competition to beat. The new Ultra generation features lidar and 1,500 kW DC charging, and these two features aren’t even the most impressive aspects of the model That would be the price. It starts at 152,000 yuan or $22,000 with the 76 kWh battery, and it goes up to 180,000 yuan or $26,000 for the 83 kWh version. For comparison, the Tesla Model Y starts in China at 259,000 yuan $38,250 …. Expect the Song to experience a second youth in the second half of the year, and while it should be hard to displace the Tesla Model Y from the second place position, the last place on the podium should be doable this year. And maybe gold in 2027? 3 — Leapmotor A10 Things continue to go well for the startup brand, with its new baby A10 promising to be the star player of an already strong lineup. Thanks to 26,424 registrations , the small crossover continues to ramp up production, winning its first podium finish on the way. The model has the usual value-for-money focus of the brand, and a low, low price of 66,000 yuan $10,000 . On top of that, however, the A10 offers something close to a distinct personality, as the design eschews the white product standard design of Leapmotor for something more personal, mostly thanks to the front and back lights and a floating roof effect. One wonders how high the crossover will sit on the table once it is at cruising speed. Podium material? 4 — Tesla Model Y The extended wheelbase version, imaginatively called “L,” is helping the Model Y’s fortunes in China. Still, in July, deliveries reached 25,158 units , a 18% drop over July 2025. The long wheelbase version is proving to be of big help for the US crossover, keeping the Model Y’s sales afloat, but new variants can only do so much. When most direct competitors are transitioning into 800V platforms and adding new features, the six-year old Model Y is starting to look a bit old. Still, the Tesla crossover has enough demand to provide it a podium position this year. Next year, though? Hard to see it getting there. 5 — Xiaomi SU7 The King of Sedans. Things continue to go well for the sporty model, with the startup EV model securing another top 5 presence thanks to 21,044 registrations . With a high amount of tech, great comfort, and a sporty ethos to go along with it, the SU7 success shows that there is still life in the sedan category. You just need to make them appealing. … After all, in a world filled with boring crossovers and SUVs, sedans can be what coupés and sports cars were a few decades ago — sexier car choices for individuals who find more family-friendly models just too drab and dull. Looking at the rest of the best seller table, the highlight in the top half was the Fang Cheng Bao Tai 7, which had its best result this year thanks to 20,320 registrations, all while the Li Auto i6 had a slow month dropping to 10, with 15,420 registrations. As for the second half of the table, things were more interesting. GAC’s Aion i60 https://en.wikipedia.org/wiki/Aion i60 reached the table, thanks to 11,186 registrations, a new record for the compact crossover. Still in record territory, the new Chery QQ3 EV https://en.wikipedia.org/wiki/Chery QQ3 debuted in the top 20, in 17th, with a record 10,780 registrations. Chery has high hopes for its new baby, as the Wuhu make hopes it can replicate the Geely Xinguyan’s success with its own small hatchback. A final note on the BYD Seal 06, 19 in July: not for its sales performance in itself — after all, 10,390 deliveries is not particularly a strong month for the midsizer — but because over 1,500 of the units belonged to the station wagon body, a not insignificant proportion of its sales and more proof that station wagons are starting to be “a thing” in China, a market that until recently was marginal at best. With other station wagons also experiencing moderate success NIO ET5, Zeekr 7 GT… , one can hope that station wagons will benefit in the future from fatigue with the current SUV/crossover craze and as more models become available. Outside the top 20, a few models deserve a mention. Starting in the land yacht category, both Leapmotor and Xpeng had their takes on the topic, ramping up production and reaching relevant volumes. Leapmotor’s D19 https://en.wikipedia.org/wiki/Leapmotor D19 scored its first five-digit result 10,043 registrations , meaning that a top 20 presence should be possible soon, while Xpeng’s ~~Range Rover~~ GX had 7,016 units delivered. Further down the food chain, the BYD Yuan Plus had its best month since last September, 9,246 registrations, all thanks to a new generation of the compact crossover that should help it claw back into the top 20. Looking at the 2026 ranking , the podium remained the same, and unless something unexpected happens, it should stay as it is until the end of the year, with the small Geely repeating its 2025 win, the Model Y returning to silver after its bronze in 2025, and the BYD Song getting back onto the podium after a one-year absence. Below the podium positions, BYD had two models on the rise. The BYD Yuan Up went up to 7th, while in the second half of the table, the BYD Seal 06 profited from a dismal month for the AITO M7 only 4,500 units to climb one position into 17th. But the major news lie elsewhere. The Climber of the Month was the recently introduced Leapmotor A10, which jumped nine spots from 19th in June to its current 10th position. With the small crossover still ramping up, I wouldn’t be surprised to see it reach the 7th spot soon. Changan also had a good month, seeing its mainstream Qiyuan Q05 climb one position into 11th, all while its more premium cousin, the Deepal S05, joined the table in 20th. “Hey, I’m not seeing the Tesla Model 3 on the table ” And your eyes haven’t deceived you. The US sedan is not in the top 20, because in July it dropped to 21st, some 400 units below the 20 Deepal S05. Sure, it will be back on the table, if not in August, then surely in September, profiting from its usual end-of-quarter peak. But…. This is the Model 3’s new reality. After winning the Best Selling EV title in China back in 2020, the only foreign model ever to achieve that, and winning the 3rd spot in the following year, it has been a slow, but steady, decline for the midsizer. Its ambition now is limited to simply staying in the top 20. This July it delivered only 2,091 units, a 78% YoY drop, and while there are several explanations for this drop, the Model Y, currently 2nd in the table, is not having the same kind of sales crash. So, besides being an older model, it also sits in a category, sedans, that has generally been affected by the crossover/SUV fever. There are 12 crossover/SUVs in the top 20, against four hatchbacks and four sedans. Still, it is when comparing these sedans against the Tesla Model 3 that one realizes the real reason why the US model is falling behind: Tesla cannot compete on price, as their competitors are selling at half price, but it can no longer compete on value either, as the Xiaomi sedan is a better and dare I say, sexier proposal for roughly the same price. Looking at the overall manufacturer ranking , it is a sea of red. Everyone is losing sales — big time . Toyota’s 17% drop could be considered a win when we look at the 32% drop of BYD, the 27% drop of Geely, and the 41% crash of the once almighty Volkswagen, now only in 4th. So, if the big boys on top are crashing, who is winning? Answer: Startups. And especially Leapmotor. The Hangzhou startup was up an astonishing 84% YoY, to 83,698 registrations, ending the month fewer than 4,000 units below Volkswagen …. And with plenty of fresh metal coming in A10 and D19 ramping up, new A05, D99… , expect sales to continue on the way up, endangering the positions of not only VW and Toyota as they try to adapt to the new realities of the market, but even big shot Geely could become threatened by Leapmotor. I mean, it just takes LP’s A10 and A05 starting to steal relevant sales from the Geely Xingyuan and Geely could start seeing its silver medal slip from its hands, and into Leapmotor’s…. Looking below the top 10, a few more brands are experiencing surging sales, like 16 Zeekr. Geely’s premium arm jumped 75% YoY to 26,000 units sold. At 12, we have another premium brand, this time BYD’s Fang Cheng Bao, which is surging 109% YoY to 29,000 units. Meanwhile, Qiyuan/Nevo is at 14, with 28,000 units sold, a 108% volume increase compared to the same period in 2025. On the other hand, there are plenty of foreign makes in deep red, with the most surprising of them being Honda, only 18th in July, having seen its sales crater by 44% YoY in July to 25,000 units, a quarter of what arch-rival Toyota had in the same month. And then there is General Motors. After confirming that Chevrolet is leaving China https://cleantechnica.com/2026/08/12/chevrolet-leaves-china/ , Buick is also in a bad place, having seen its sales drop by 37% YoY in July, to some 23,000 units. But many more are also on the way out. In July, Ford sold only 3,800 units, down 61% YoY. In the same period, Lincoln sold 1,500 units, down 49% YoY, while both Peugeot and Citroen sold fewer than 1,000 units, around half of what they sold a year ago. Long story short, the Chinese automotive market is currently a tale of two different markets — a shrinking old ICE one, where foreign legacy OEMs still hold the majority, and the increasingly more significant EV market, where local brands dominate the landscape. Looking at the auto brand ranking , there’s plenty of news. Leader BYD is firm in the leadership spot 17.1% , while runner-up Geely continues to slide 7.2%, down from 7.4% . This means that rising Leapmotor 6.1%, up 0.6% is now less than 1% behind Geely, so it won’t be surprising if in a couple of months, we saw the startup brand become the new silver medalist. Meanwhile, Tesla 4.7%, down 0.4% ~~barely~~ held on to the 4th spot, with 5 Wuling 4.7% looking menacingly in the rearview mirror. Still, expect Tesla to keep the 4 position, as the September peak should help it gain distance over Wuling. 6 Li Auto 4.1% and 7 Xiaomi are still a ways off from SAIC’s make, so the top 5 should remain as it is in the following months. Looking at OEMs/automotive groups/alliances , BYD is leading, with 21.4% share of the market, up 0.3% in July. The leader is benefitting from the continued success of Fang Cheng Bao, and from a strong month coming out of Denza. Meanwhile, 2 Geely lost 0.2% share and got down to 12.1%, but the multinational conglomerate still had the runner-up spot secured. 3 SAIC was down 8.1% due to Wuling’s slow month, but remained firm in the last place on the podium, while 4 Changan is also stable in 4th 6.7%, down 0.1% . Having said that, the 5th placed Leapmotor 6.1%, up 0.6% could become a threat soon to 4 Changan, and maybe even to 3 SAIC later in the year. Leapmotor is becoming serious business, thanks to a focused lineup that is at the same time broad, covering everything from city cars to full size ones but without going into the lineup byzantine follies of BYD, where you have several models for just one category example: midsize sedan BEV category: BYD e7, Qin L EV, Seal 06 EV, Seal . At this pace, I wouldn’t be surprised if in a few years 2030? , Leapmotor became a larger automaker than Tesla … globally. Sign up for CleanTechnica's Weekly Substack for Zach and Scott's in-depth analyses and high level summaries https://cleantechnica.substack.com/subscribe , sign up for our daily newsletter https://mailchi.mp/cleantechnica/daily-newsletter , and follow us on Google News https://news.google.com/publications/CAAqLQgKIidDQklTRndnTWFoTUtFV05zWldGdWRHVmphRzVwWTJFdVkyOXRLQUFQAQ Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here https://cleantechnica.com/contact/ . Sign up for our daily newsletter for 15 new cleantech stories a day https://mailchi.mp/cleantechnica/daily-newsletter . Or sign up for our weekly one on top stories of the week https://mailchi.mp/cleantechnica/weekly-newsletter if daily is too frequent. CleanTechnica uses affiliate links. See our policy here https://cleantechnica.com/cleantechnica-editorial-ethics/ . CleanTechnica's Comment Policy https://cleantechnica.com/cleantechnica-comment-policy/