China’s EV sales slide again amid fading incentives, weak demand and persistent price war
Deliveries of electric vehicles (EVs) in China fell 3.9 per cent in July from a year earlier, extending their decline to a seventh consecutive month as fading government incentives and weaker consumer demand weighed on the market. Domestic sales of pure electric and plug-in hybrid vehicles last month also fell 5.8 per cent from June, according to data from the China Passenger Car Association…
China's electric vehicle (EV) sales continued to drop in July, falling 3.9% compared to the previous year, as government incentives waned and consumer demand weakened, according to data from the China Passenger Car Association (CPCA). EV sales also declined 5.8% month-over-month, falling to 239,370 units, a 9% decrease year-over-year.
The market downturn may force many small EV companies to close, according to industry analyst Phate Zhang. Overall car deliveries in mainland China plummeted 20.9% year-over-year in July, to 1.46 million units. EVs made up 65.1% of total car sales in July. Analysts predict more price cuts, with Chinese carmakers delivering 5.67 million EVs to domestic customers from January to July, marking a 12.5% year-over-year decline.
Global consultancy AlixPartners forecast a 10% drop in China's car deliveries this year to 24.6 million units due to the slowing economy and reduced government support. Carmakers selling vehicles below 100,000 yuan are currently making a slim profit of just 1,500 yuan, on average. Only seven out of 30 EV-focused Chinese carmakers are expected to be profitable by 2030, with BYD, the world's largest EV manufacturer, reporting a 4.9% year-over-year sales increase in July, but a 9% drop from July 2025.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
