China NEV Sales Approach 50% Market Share

China’s auto sector accelerated in August, with CAAM reporting 2.815 million vehicles produced and 2.857 million sold, up 13.0% and 16.4% year‑on‑year.
Passenger vehicle output and sales drove gains, leaving year‑to‑date totals at roughly 21.1 million produced and sold through August.

New energy vehicles (NEVs) remain the main growth engine: August production reached 1.391 million and sales 1.395 million, a 27% and 27% increase respectively, taking NEV share to 48.8% of new-car sales.
Year‑to‑date NEV production and sales stand at about 9.62 million, representing 45.5% of cumulative passenger-car sales.

Domestic NEV demand stayed strong, with August domestic NEV sales at 1.171 million and year‑to‑date domestic sales near 8.09 million.
Exports continue rising: 224,000 NEVs shipped in August (about +100% year‑on‑year) and roughly 1.53 million exported in January–August (+87%).

The near‑50% penetration signal suggests China is moving toward a majority‑electric market well ahead of many forecasts. The export surge heightens competitive pressure on Western OEMs and tightens demand across battery components, power electronics, and rare‑earth permanent magnets (NdFeB), with implications for industrial policy, supply‑chain resilience, and trade measures.