China NEV sales on track to surpass gas cars in 2025

Sales of new energy vehicles (NEVs) in China are poised to surpass those of gasoline-powered cars for the first time in 2025, with the segment accounting for nearly half of all new car sales so far this year, reports Caixin. From January to August, NEV sales—including battery electric and plug-in hybrid models—jumped 36.7% year-on-year to 9.62 million units, or 45.5% of all new car sales, according to data released Thursday by the China Association of Automobile Manufacturers (CAAM). In the domestic market, NEVs captured 48% of sales with 8 million units sold, putting the country on track to hit a 50% share by year-end.

This rapid market adoption means China’s NEV sales are on track not only to surpass traditional fuel-powered cars in annual sales for the first time, but also to far exceed government targets. A 2020 plan set a goal for NEVs to reach just 20% of new car sales by 2025.

The sales figures also reflect a shift in consumer preference. Pure electric vehicles have returned to a fast-growth track, with sales rising 46.1% year-on-year to 6.158 million units in the first eight months, solidifying their role as the market’s mainstay. In contrast, sales of plug-in hybrid vehicles rose by a slower 22.8% to 3.46 million units. This marks a reversal from 2024, when hybrids led the segment with an 83.3% increase, compared to just 15.5% for battery electrics.