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

      New energy vehicles accounted for a record 65.1% of passenger car sales in China in July; however, the volume of NEVs saw a year-on-year decline of about 2%, marking the seventh consecutive month of decrease, while the overall market experienced an 18% drop. Geely’s Xingyuan emerged as the top seller, while BYD’s leading model only reached fifth place over six months.

      According to figures from the China Passenger Car Association released Tuesday, electric and hybrid vehicles took 65.1% of passenger car sales in July, achieving this record for an unfortunate reason—the sales of new energy vehicles decreased for the seventh straight month.

      Retail sales of NEVs totaled approximately 970,000 units, a decline of about 2% compared to the previous year, while the overall passenger market fell by 18%. Over the first seven months, NEV sales decreased by 12.5%, with total passenger vehicle sales down by 20.3%. Thus, electric cars are capturing a larger share of a significantly shrinking market.

      This contraction has been what Chinese automakers have been facing throughout the year, heading towards their worst performance since 2021.

      In July, Geely’s Xingyuan topped the charts with 32,306 units sold, followed by Leapmotor’s A10 at 26,424 and Tesla’s Model Y with 25,158, as reported by CarNewsChina. If the timeframe is extended to six months, the ranking changes, with Autohome data showing the Xingyuan leading with nearly 197,500 units and the Model Y coming in second with over 180,000.

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

      BYD has seen a decline, with its leading model, the reasonably priced Yuan Up SUV, only achieving fifth place in the six-month period with nearly 97,700 units sold, and sixth place in July, where it was outsold by Leapmotor’s A10. The company reported a decline of more than 10% in passenger car sales during the first half of the year.

      Meanwhile, Geely, which ranked second in China by volume in 2025, is trimming excess manufacturing capacity in preparation to compete globally with BYD. It still markets gasoline vehicles in addition to electric models, including its premium Zeekr brand.

      Volkswagen was the only traditional foreign manufacturer to make it into the six-month top ten, with its gasoline-powered Lavida in ninth place, situated between Leapmotor’s A10 and Geely’s Boyue L. In July, the only combustion vehicle in the top ten was Toyota’s Corolla Cross, which ranked tenth.