Electric vehicles have reached a record proportion of China's market, yet their sales have still decreased.

      In July, new energy vehicles accounted for a record 65.1% of passenger car sales in China, although NEV sales declined by about 2% compared to the previous year, marking a seventh consecutive month of decline, while the overall market saw an 18% drop. Geely’s Xingyuan was the top seller, and the best performer from BYD only managed fifth place over the past six months.

      According to data released by the China Passenger Car Association on Tuesday, electric and hybrid vehicles achieved a record 65.1% share of Chinese passenger car sales in July, albeit due to the declining NEV sales, which have now decreased for seven months straight.

      Retail sales of NEVs reached approximately 970,000 units, down about 2% from a year prior, while the overall passenger vehicle market fell by 18%. Over the first seven months of the year, NEV sales decreased by 12.5%, with total passenger sales down 20.3%. Electric vehicles are claiming a larger portion of a significantly reduced market.

      This downturn is what Chinese automakers have been navigating throughout the year, pushing the industry toward its worst performance since 2021.

      In July, Geely’s Xingyuan topped the sales chart with 32,306 units sold, followed by Leapmotor’s A10 at 26,424 and Tesla’s Model Y at 25,158, as per CarNewsChina. Expanding the view to six months, Autohome data shows the Xingyuan led with nearly 197,500 units, while the Model Y was second with over 180,000.

      The price difference between these models exemplifies the market dynamics. The Xingyuan is an electric hatchback priced just below 100,000 yuan (about $14,820), whereas the Model Y ranges from 263,500 to 313,500 yuan. Geely has been actively promoting affordable electric vehicles, including a $15,300 electric SUV now available in 35 countries.

      BYD, on the other hand, has seen a decline. Its most popular model, the reasonably priced Yuan Up SUV, placed fifth in sales over the six-month period with nearly 97,700 units and sixth in July, falling behind Leapmotor’s A10. The company reported a more than 10% drop in passenger car sales during the first half of the year.

      Geely, which ranked second in Chinese sales volume in 2025, is reducing excess manufacturing capacity as it prepares to compete globally with BYD. It continues to sell both gasoline and electric vehicles, including those under its premium Zeekr brand.

      Volkswagen was the only traditional foreign automaker to secure a position in the six-month top ten, with the gasoline-powered Lavida in ninth place, situated between Leapmotor’s A10 and Geely’s Boyue L. In July, the only combustion engine model in the top ten was Toyota’s Corolla Cross, which came in tenth.